GlobeNewswire Inc | Jun 16, 2021 09:57AM EDT

June 16, 2021

CHARLOTTE, N.C., June 16, 2021 (GLOBE NEWSWIRE) -- Extended Stay America, Inc. (ESA) and its paired-share REIT, ESH Hospitality, Inc. (ESH and, together with ESA, Extended Stay or the Company) (NASDAQ: STAY) today announced the completion of their previously announced acquisition by funds managed byBlackstone Real Estate Partners (Blackstone) andStarwood CapitalGroup for$20.50per paired share in cash in a transaction valued at approximately $6 billion.

As required under the terms of the Companys definitive merger agreement, the Board of Directors of ESA, on June 15, 2021, declared a special cash dividend of $1.75 per share of common stock of ESA that was paid immediately before the effective time of the mergers to holders of record as of the close of business on June 15, 2021. Company shareholders who held their paired shares of common stock on the record date for the special cash dividend and through the effective time of the mergers are entitled to receive an aggregate of $20.50 in cash, consisting of the $1.75 special cash dividend and merger consideration which, as reduced by the $1.75 special cash dividend, was comprised of $10.40 per share of ESA common stock and $8.35 per share of Class B common stock of ESH. As a result of the transaction, the paired shares will cease trading on the Nasdaq Global Select Market.

Goldman Sachs & Co. LLC served as lead financial advisor to the Company and BofA Securities also served as financial advisor to the Company. Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal counsel.

J.P. Morgan, Citigroup Global Markets Inc. and Deutsche Bank acted as financial advisors and provided debt financing to Blackstone and Starwood. Simpson Thacher & Bartlett LLP acted as legal advisor to Blackstone, and Kirkland & Ellis LLP acted as legal advisor to Starwood Capital.

About Extended Stay America Extended Stay America, Inc. (ESA) and its brand Extended Stay America is the leading brand in the mid-priced extended stay segment in the U.S. with 651 hotels. ESAs subsidiary, ESH Hospitality, Inc., is the largest lodging REIT in North America by unit and room count, with 561 hotels and approximately 62,500 rooms in the U.S. ESA also franchises an additional 90 Extended Stay America hotels. Visit www.esa.com for more information.

AboutBlackstone Real EstateBlackstone is a global leader in real estate investing. Blackstones real estate businesswas founded in 1991 and has $196billion of investor capital under management. Blackstone is one of the largest property owners in the world, owning and operating assets across every major geography and sector, including logistics, multifamily and single family housing, office, hospitality and retail. Our opportunistic funds seek to acquire undermanaged, well-located assets across the world. Blackstones Core+ strategy invests in substantially stabilized real estate globally through regional open-ended funds focused on high-quality assets and Blackstone Real Estate Income Trust, Inc. (BREIT), a non-listed REIT that invests in U.S. income-generating assets. Blackstone Real Estate also operates one of the leading global real estate debt businesses, providing comprehensive financing solutions across the capital structure and risk spectrum, including management of Blackstone Mortgage Trust (NYSE: BXMT).

AboutStarwood Capital GroupStarwood Capital Groupis a private investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 16 offices in seven countries around the world, and currently have approximately 4,100 employees. Since its inception in 1991,Starwood Capital Grouphas raised over$55 billionof equity capital, and currently has in excess of$75 billionof assets under management. Through a series of comingled opportunity funds andStarwood Real Estate Income Trust, Inc.(SREIT), a non-listed REIT, the Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving.Starwood Capitalalso managesStarwood Property Trust(NYSE: STWD), the largest commercial mortgage real estate investment trust inthe United States, which has successfully deployed over$63 billionof capital since inception and manages a portfolio of over$17 billionacross debt and equity investments. Over the past 29 years,Starwood Capital Groupand its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found atstarwoodcapital.com.

Extended Stay Contacts:

Investors or MediaRob Ballewir@esa.com(980) 345-1546

Blackstone Jeffrey KauthJeffrey.Kauth@Blackstone.com(212) 583-5395

Starwood Capital GroupTom Johnson/Dan ScorpioAbernathy MacGregor Grouptbj@abmac.com/dps@abmac.comTel: (212) 371-5999