Extended Stay America reached
an agreement to sell 47 Crossland Economy Studios properties and six
“similarly positioned” Extended Stay America hotels for $285 million to
Westmont Hospitality Group.
The hotels account for about 8%
of the company’s portfolio and are on the lower end of the company’s pricing
scale. The 53 hotels’ average revenue per available room is about 40%
lower than the rest of the chain, Extended Stay said.
Extended Stay America says the
sale will allow the company to operate under a single brand. The sale is
expected to close by the end of the year.
Extended Stay America raised
$565 million in its October 2013 initial public offering.
Westmont Hospitality owns more
than 500 hotels worldwide under several brands, including Fairmont, InterContinental, Best Western and Comfort Inn.