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Friday, 04 May 2018

Extended Stay America Expects to Sell 45 More Hotels by End of 2018

The Charlotte, N.C., REIT, which last year launched an effort to sell 150 properties by 2021, aims to sell 45 hotels through the end of the year. That would be in addition to the 31 properties it has sold so far this year. It's planning to use proceeds to reduce debt, buy back stock, as well as invest in developments and upgrades to existing properties.

Commercial Real Estate Direct Staff Report

Extended Stay America Inc. is in negotiations to sell 45 hotels by the end of the year as part of a plan, launched last year, to shed 150 properties by 2021.

That would be in addition to the 31 properties the Charlotte, N.C., REIT has sold so far this year for a total of $236 million. Last year, the company sold five properties for $77 million.

In February, it sold 25 properties with 2,400 rooms to Three Wall Capital for $114 million, and in March, it sold a hotel in Austin, Texas, for $44.8 million.

Extended Stay is selling hotels that underperform its portfolio as a whole. During the first quarter, portfolio-wide revenue per available room increased 3.7 percent to $47.50 from a year earlier. The company owns 598 hotels with about 66,000 rooms.

Extended Stay typically continues to manage the hotels it sells and receives...

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