Extended Stay And ESH Hospitality Secondary Offering To Raise $520.5 Million

Extended Stay America Inc. and ESH Hospitality Inc. said Friday an offering of 30 million paired shares has been priced and will raise about $520.5 million. The paired shares consist of a share of common stock of Extended Stay as well as a share of Class B common stock of ESH, which are attached and trade together as a paired share. The offer is being made by selling shareholders linked to Centerbridge Partners L.P., Paulson & Co. Inc. and The Blackstone Group L.P . The company will not receive any paired shares or any of the proceeds of the offering. Shares fell 4.3% premarket, but are up 10.5% in 2017, while the S&P 500 has gained about 6%.