Date: November 2018
Location: Across the USA
Name: Extended Stay America
No. of Keys: TBA
Seller: Extended Stay America
Buyers: Lodging Advisory Group, a hotel owner, developer and asset manager with offices in Wichita, Denver and Phoenix. The 16 hotels acquired by LAG include hotels located in Kansas, Missouri, New Mexico, Nebraska and Arizona. The disposition comes with franchise agreements for each of the hotels.
Additionally, LAG has committed to build or convert five additional Extended Stay America hotels in the future.
…..and Provident Realty Advisors, a Dallas based developer with 27 years of real estate experience.
The hotels acquired by Provident include 11 hotels in Texas and 5 in Oklahoma and will be operated by Aimbridge Hospitality, the nation’s largest hotel management company, operating over 800 hotels with US$4bn turnover, across the US and The Caribbean, with brands such as Hilton, Marriott, Hyatt, Hard Rock, Wyndham – the lot really!
The company has its corporate headquarters in Plano, Texas and is headed up by Dave Johnson, CEO & Chairman.
The disposition comes with franchise agreements for each of the 16 hotels.
Additionally, Provident has committed to build or convert five additional Extended Stay America hotels in the future.
Extended Stay America’s President and Chief Executive Officer, Jonathan Halkyard, commented, “We are thrilled to welcome LAG and Provident as our second and third franchise partners, respectively, into the Extended Stay America system.
With their deep industry experience combined with our industry leading margins and our dominant position in the mid-priced extended stay segment in the lodging industry, we look forward to many years of success together.“
Partner and Co-founder of LAG, Dan Weber, commented, “We are very excited to acquire a high quality portfolio of extended stay hotels. Our team has extensive extended stay hotel experience and we are pleased to become a franchise partner with the leader in the mid-priced extended stay segment.
Lodging Advisory Group, LLC was formed in 2017 with the intent of acquiring and developing a diversified portfolio of extended stay hotel assets. Dan Weber is the former CEO of Value Place Hotels (now branded WoodSpring Suites) and is the managing partner of Apex Advisory Group.
CEO and Owner of Provident, Leon Backes, commented, “We are excited to partner with Extended Stay America as one of their first franchisees.
We have a strong development and construction platform here at Provident that we will leverage to grow the ESA brand as a part of the ESA 2.0 initiative. Our goal as a franchise is to build a long and successful relationship with ESA.”
Provident is a privately held real estate and investment firm. Since its formation in 1991, Provident has developed or invested in more than $3 billion worth of real estate projects.
Hotels appears to be a new area for them as their expertise has been in land investments, anchored retail centers, repositioning of outdated malls and apartments, master planned residential communities, self-storage facilities, multi-family acquisition & development, and infill mixed use development.
When discussing Aimbridge’s role in the transaction and as the hotel manager Backes stated “Aimbridge was instrumental in a successful transaction. We are confident in Aimbridge’s ability to improve the performance of these hotels through professional management. Their leadership team is experienced and their track record proven.”
Extended Stay America, Inc. (“ESA”) and its brand Extended Stay America® is the leading brand in the mid-priced extended stay segment in the U.S with 626 hotels, with approximately twice as many rooms as its nearest competitor.
ESA’s subsidiary, ESH Hospitality, Inc. (“ESH”), is the largest lodging REIT in North America by unit and room count, with 567 hotels and approximately 62,000 rooms in the U.S. ESA also manages or franchises an additional 59 Extended Stay America® hotels.
THPT Comment: Neat deal all-round
First Seen: Hotel News Now