Extended Stay America, ESH Hospitality and Three Wall Capital completed the sale of 25 Extended Stay America hotels to an affiliate of Three Wall Capital.
Three Wall Capital will be Extended Stay America’s first third-party operator following ESA's launch of a franchising model in mid-2017. Extended Stay America will continue to manage the 25 ESA hotels over a 20-year contract. The 25 hotels represent more than 2,400 rooms and are located in Ohio, Kentucky, Indiana and Texas. In conjunction with this transaction, Three Wall Capital signed an agreement to build 15 additional ESA hotels over a seven-year period.
“We are proud to partner with a company that shares our commitment to quality, and are thrilled to welcome Three Wall Capital into the ESA system as our first third-party owners,” Jonathan Halkyard, CEO of Extended Stay America, said in a statement.
“The acquisition of these assets along with our commitment to growing the ESA system provides us with a fantastic opportunity to partner with one of the industry’s premier brands and the leader in the mid-priced extended stay segment,” Alan Kanders, founder and managing member of Three Wall Capital, said in a statement.
Extended Stay America is an integrated hotel owner/operator in North America. Its real estate investment trust subsidiary, ESH Hospitality, has 599 hotels and approximately 66,000 rooms in the U.S. ESA manages all of ESH’s hotel properties and also manages 26 additional Extended Stay America hotels.
Founded in 2008 by Alan Kanders, a former managing director at Lehman Brothers, Three Wall Capital completed more than $600 million in transactions in a principal investor capacity. Investments included several properties on the East Coast of the United States including the Quin (New York), Mayflower Inn & Spa (Washington, Conn.), Aloft Hotel (Atlanta), Coral Beach & Tennis Club and Horizons Cottages (Bermuda), three branded hotels in the Greater New York City area and 25 Extended Stay America hotels.