Extended Stay looks to raise $500M in IPO

|By:, SA News Editor

Extended Stay America has increased the amount it intends to raise in its IPO to $500M from the placeholder figure of $100M, with the hotel chain expecting net proceeds of $461M.

Extended Stay, whose owners include Blackstone Group (BX), is offering units comprised of one share of the company and one Class B share of a related entity that is looking to be taxed as a real estate investment trust.

Extended Stay earned net income of $22.3M in 2012 on revenue of $1B, and owns 700 hotels in the U.S. and Canada.