Siegel Group Buys Four Extended Stay Properties
Date: March 2018
Location: Albuquerque, New Mexico; Tucson, Arizona; Memphis, Tennessee and Bossier City, Louisiana.
Name: Crossland Economy Studios, with 60 locations across the USA.
No. of Keys: 500
Seller: Crossland Economy Studios, part of HomeTowne Suites and Studios, sold by Extended Stay America in 2015 for around US$290m.
Buyer: Siegel Group – increases their number of properties in the USA to 46.
Built between 1996 and 1998, the four property portfolio totals 182,637 square feet and is comprised of 500 units all containing kitchenettes.
The Siegel Group will be operating each location under its extended-stay brand, Siegel Select, which provides short-term daily stays and extended-stay accommodations.
Stephen Siegel, president of The Siegel Group, stated: “We are excited to start 2018 with the acquisition of four new properties that will significantly expand our Siegel Select extended-stay brand as well as introduce our business model to three new territories.
Demand for our brands has been overwhelming, and we are on track to open numerous locations throughout the country as part of our national expansion plan.”
Price: US$14m
Price per Key: US$28,000
THPT Comment: Siegel are clearly going well with this acquisition and i guess we’ll see more before the year is out. Mind you the largest extended stay company in the USA is Extended Stay America with 600 properties across the USA, founded in 1995 and acquired by Blackstone in 2004 for US$3.1bn…who sold it the Lightstone Group in 2007 for US$8bn. They went Chapter 11 in 2009 and got bought back by Blackstone for just under US$4bn….
First Seen: Serviced Apartment Summit Americas