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Blackstone and Starwood Boost Offer for Extended Stay Ahead of Vital Shareholder Vote

Cameron Sperance

Photo Credit: Blackstone and Starwood Capital upped the offer on their planned Extended Stay America takeover one week before shareholders vote on whether or not to approve it. Flickr / Mike Mozart

Skift Take

Blackstone and Starwood Capital blinked, bowing to critics on what they deemed a lowball offer for Extended Stay America.

The two investment firms that plan to acquire Extended Stay America for $6 billion upped their offer Tuesday morning amid growing criticism that bid was too low. Blackstone and Starwood Capital announced they would boost their offer from $19.50 per share to $20.50 per share, which would still keep the overall acquisition cost around $6 billion. The move comes a week before shareholders vote on whether to approve the takeover. Some of Extended Stay America’s largest shareholders and two directors on its ESH Hospitality real estate trust board criticized the bid as a lowball offer given

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