Extended Stay America and ESH Hospitality completed sales of two portfolios totaling 32 branded Extended Stay America hotels.
The company recently completed the sale of 16 Extended Stay America branded hotels to Lodging Advisory Group, a hotel owner, developer and asset manager with offices in Wichita, Kan.; Denver; and Phoenix. The 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 16 hotels. Additionally, LAG has committed to build or convert five additional Extended Stay America hotels in the future.
The company also recently sold 16 Extended Stay America branded hotels to Provident Realty Advisors, a Dallas-based developer with 27 years of real estate experience. The hotels acquired by Provident comprise 11 properties in Texas and five in Oklahoma, and all will be operated by Aimbridge Hospitality. 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.
“We are thrilled to welcome LAG and Provident as our second and third franchise partners, respectively, into the Extended Stay America system," Extended Stay America’s president and CEO, Jonathan Halkyard, said in a statement. "With their deep industry experience combined with our industry leading margins and our dominant position in the midpriced extended stay segment in the lodging industry, we look forward to many years of success together.“
“We are very excited to acquire a high-quality portfolio of extended-stay hotels," Dan Weber, partner and co-founder of LAG, said in a statement. "Our team has extensive extended-stay hotel experience and we are pleased to become a franchise partner with the leader in the midpriced extended stay segment. We look forward to growing our Extended Stay America branded portfolio over the next several years.“
“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," Leon Backes, CEO and owner of Provident, said in a statement. "Our goal as a franchise is to build a long and successful relationship with ESA.”
When discussing Aimbridge’s role in the transaction and as the hotel manager Backes said “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.”