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CHICAGO — A group of investors led by Centerbridge Partners LP has won an auction to buy the hotel chain Extended Stay Hotels Inc. out of bankruptcy court protection for nearly $4 billion, according to a report published Friday.
Citing "people familiar with the matter," The Wall Street Journal says Centerbridge and other investors, including Paulson & Co. and Blackstone Group, bid $3.93 billion for the struggling chain of 680 properties.
Messages left with Centerbridge and Extended Stay were not returned Friday.
No documents detailing the result of Thursday's auction had been filed with the bankruptcy court at midday Friday.
The cash offer still needs an approval from the judge overseeing the case in the U.S. Bankruptcy Court in the Southern District of New York.
Extended Stay, based in Spartanburg, S.C., filed for federal bankruptcy protection last summer. It blamed debt from its 2007 acquisition by the Lightstone Group and a sharp drop in business travel during the recession.
The company previously agreed to take an investment from Centerbridge Partners and Paulson & Co. but backed away from that offer in favor of another bid by Starwood Capital Group.
The Journal said Starwood continued to bid for Extended Stay during the auction but stopped $20 million short of the Centerbridge bid.
