Filing Coverage: Blackstone Holdings Iii L.P. Just Opened Huge Extended Stay America, Inc Position

Filing Coverage: Blackstone Holdings Iii L.P. Just Opened Huge Extended Stay America, Inc Position

The New Blackstone Holdings Iii L.P. Holding in Extended Stay America, Inc

Blackstone Holdings Iii L.P. filed with the SEC SC 13D/A form for Extended Stay America, Inc. The form can be accessed here: 000119312516775144. As reported in Blackstone Holdings Iii L.P.’s form, the filler as of late owns 16.7% or 32,978,872 shares of the Consumer Discretionary–company.

Extended Stay America, Inc stake is a new one for the and it was filed because of activity on November 18, 2016. We feel this shows Blackstone Holdings Iii L.P.’s positive view for the stock.

Reasons Why Blackstone Holdings Iii L.P. Bought – Extended Stay America, Inc Stock

Purpose of Transaction

Item 4 shall be supplemented by adding at the end thereof:

November 2016 Secondary Offering

OnNovember 14, 2016, the Issuers and Sponsors entered into an underwriting agreement (the “November 2016 Underwriting Agreement”) with the underwriter named therein (the “November 2016 Underwriter”).Pursuant to the November2016 Underwriting Agreement, the Sponsors sold in the aggregate 12,750,000 Paired Shares at a price of $14.76 per Paired Share.The sale of the Paired Shares pursuant to the November 2016 Underwriting Agreement closed on November 18, 2016.

References to and descriptions of the November 2016 Underwriting Agreement set forth above in this Item 4 do not purport to be complete andare qualified in their entirety by reference to the full text of the November 2016 Underwriting Agreement, which has been filed as Exhibit K hereto and incorporated by reference herein.

Lock-Up Agreement

In connection with the secondary offering described herein, the Issuers, the Issuers’ executive officers and directors and the Sponsorshave agreed with the November 2016 Underwriter, subject to specified exceptions, not to offer, pledge or sell any of the Paired Shares or securities convertible into or exchangeable for Paired Shares, for a period of 30 days after November 14, 2016except with the prior written consent of the November 2016 Underwriter.

References to and descriptions of the lock-up agreement set forthabove in this Item 4 does not purport to be complete and are qualified in their entirety by reference to the full text of the lock-up agreement, a form of which has been filed as Exhibit L hereto and incorporated by reference herein.

Share Repurchase

On November 14, 2016,the Issuers and Sponsors entered into a share repurchase agreement (the “September 2016 Repurchase Agreement”), pursuant to which the Sponsors sold back to the Issuers an aggregate of 1,275,000 Paired Shares.The shares were sold at aprice of $14.76 per Paired Share.The sale of the Paired Shares pursuant to the November 2016 Repurchase Agreement closed on November 18, 2016.

Extended Stay America, Inc Institutional Sentiment

Latest Security and Exchange filings show 109 investors own Extended Stay America, Inc. The institutional ownership in Q3 2015 is high, at 106.03% of the outstanding shares. This is increased by 55366296 the total institutional shares. 209499892 were the shares owned by these institutional investors. In total 25 funds opened new Extended Stay America, Inc stakes, 47 increased stakes. There were 10 that closed positions and 31 reduced them.

3 managers had the stock in their top Ten. Notable investors are: Centerbridge Partners L.P., Simcoe Capital Management Llc, Blackstone Group L.P., Goldentree Asset Management Lp..

Raveneur Investment Group Lp is an institutional investor bullish on Extended Stay America, Inc, owning 60307 shares as of Q3 2015 for 0.34% of its portfolio. Steven Tananbaum Goldentree Asset Management Lp owns 787835 shares or 2.16% of its portfolio. NY Blackstone Group Lp have 2.57% of their stock portfolio for 47620730 shares. Further, Adi Capital Management Llc reported stake worth 3.95% of its US stock portfolio. The NY Centerbridge Partners Lp owns 47661591 shares. Extended Stay America, Inc is 46.47% of the manager’s US portfolio.

Business Profile

Extended Stay America, Inc. (Extended Stay) is an integrated owner/operator of company-branded hotels in North America. The Company operates in hotel operations segment. Its business operates in the extended stay lodging industry. It owns and operates approximately 630 hotels comprising over 69,400 rooms located in approximately 40 states across the United States and in Canada. It owns and operates its hotels under its core brand, Extended Stay America, which serves the mid-price extended stay segment. In addition, it owns and operates over three Extended Stay Canada hotels. It operates its hotels owned by ESH Hospitality, Inc. (ESH REIT). The hotels are operated by the Operating Lessees, subsidiaries of the Company and are managed by ESA Management LLC (ESA Management), a subsidiary of the Company. ESH Strategies, a subsidiary of the Company, owns the brands related to its business. The Company’s extended stay hotels are designed to provide lodging or apartment accommodations.

SEC Form 13D is filed within 10 days, by anyone who acquires beneficial ownership of 5%+ of any public firm. Activist investors and practices such as: company breakups, hostile takeovers, and change of control events, are permitted for this form filers. A filer must promptly update its 13D filing in case of acquisition or disposition of 1% or more of the securities that are the subject of the filing.

Insitutional Activity: The institutional sentiment decreased to 1.22 in 2016 Q2. Its down 0.44, from 1.66 in 2016Q1. The ratio fall, as 14 funds sold all Extended Stay America Inc shares owned while 30 reduced positions. 18 funds bought stakes while 55 increased positions. They now own 197.88 million shares or 0.07% more from 197.73 million shares in 2016Q1.

Us Fincl Bank De reported 610 shares or 0% of all its holdings. Guggenheim Ltd Liability Corporation, a Illinois-based fund reported 78,124 shares. Moreover, Walleye Trading Limited has 0% invested in Extended Stay America Inc (NYSE:STAY) for 6,882 shares. The California-based Schwab Charles Mgmt Inc has invested 0% in Extended Stay America Inc (NYSE:STAY). Comerica State Bank last reported 1.21 million shares in the company. Jpmorgan Chase & accumulated 532,546 shares or 0% of the stock. Moreover, Tudor Investment Corp Et Al has 0.02% invested in Extended Stay America Inc (NYSE:STAY) for 53,186 shares. Fdx Advisors accumulated 11,972 shares or 0.01% of the stock. Legal General Group Public Limited Liability Company has invested 0% of its portfolio in Extended Stay America Inc (NYSE:STAY). Kanaly Trust last reported 0% of its portfolio in the stock. Prudential Fincl holds 0.04% of its portfolio in Extended Stay America Inc (NYSE:STAY) for 1.54M shares. Echo Street Cap Mngmt Ltd Com has 0.77% invested in the company for 1.23 million shares. Adi Mgmt Lc holds 385,035 shares or 4.43% of its portfolio. Fund Mngmt holds 0% or 28,042 shares in its portfolio. Tiaa Cref Invest Ltd Liability Corporation reported 2.84M shares or 0.03% of all its holdings.

Insider Transactions: Since October 4, 2016, the stock had 1 insider purchase, and 3 sales for $211.55 million net activity. Another trade for 10,000 shares valued at $138,300 was made by Halkyard Jonathan S on Thursday, November 3. Blackstone Real Estate Partners VI.A-ESH L.P. had sold 4.98 million shares worth $70.56M. On Tuesday, October 4 PAULSON & CO. INC. sold $70.56M worth of the stock or 4.98 million shares. 4.98 million shares were sold by Blackstone Real Estate Associates VI-ESH L.P., worth $70.56 million.

The stock increased 0.46% or $0.07 on November 22, hitting $15.41. About 871,641 shares traded hands. Extended Stay America Inc (NYSE:STAY) has declined 3.46% since April 20, 2016 and is downtrending. It has underperformed by 8.02% the S&P500.

Extended Stay America, Inc. is an integrated owner/operator of company-branded hotels in North America. The company has a market cap of $3.04 billion. The Firm operates in hotel activities segment. It has a 25.85 P/E ratio. The Company’s business operates in the extended stay lodging industry.

Extended Stay America Inc (NYSE:STAY) Ratings Coverage

Out of 7 analysts covering Extended Stay America (NYSE:STAY), 2 rate it a “Buy”, 1 “Sell”, while 4 “Hold”. This means 29% are positive. $26 is the highest target while $14 is the lowest. The $18.50 average target is 20.05% above today’s ($15.41) stock price. Extended Stay America has been the topic of 11 analyst reports since August 3, 2015 according to StockzIntelligence Inc. The stock of Extended Stay America Inc (NYSE:STAY) earned “Outperform” rating by Robert W. Baird on Monday, August 3. The stock of Extended Stay America Inc (NYSE:STAY) has “Neutral” rating given on Monday, September 26 by Goldman Sachs. The firm has “Neutral” rating given on Wednesday, August 17 by Citigroup. The firm has “Buy” rating given on Wednesday, October 28 by Deutsche Bank. M Partners downgraded Extended Stay America Inc (NYSE:STAY) on Thursday, January 14 to “Neutral” rating. The stock has “Buy” rating given by Deutsche Bank on Friday, July 31. The stock of Extended Stay America Inc (NYSE:STAY) has “Underperform” rating given on Tuesday, July 21 by Bank of America.

More notable recent Extended Stay America Inc (NYSE:STAY) news were published by: Businesswire.com which released: “Extended Stay America Announces Pricing of Secondary Offering and Repurchase …” on November 15, 2016, also Prnewswire.com with their article: “Extended Stay America Announces Resignation Of Chief Marketing Officer” published on September 08, 2016, Businesswire.com published: “Extended Stay America, Inc. Announces Launch of New Credit Facilities” on August 05, 2016. More interesting news about Extended Stay America Inc (NYSE:STAY) were released by: Nasdaq.com and their article: “Extended Stay America, Inc. (STAY) Ex-Dividend Date Scheduled for November 04 …” published on November 03, 2016 as well as Prnewswire.com‘s news article titled: “Extended Stay America Honored At American Cancer Society Charlotte Cattle …” with publication date: November 15, 2016.

According to Zacks Investment Research, “Extended Stay America, Inc. owns and operates hotels under the core brand, Extended Stay America(R). It is the owner/operator of company-branded hotels in North America. The Company offers guest rooms, dining services, on-site laundry, local phone calls, personalized voicemail, pools, fitness centers, and pet friendly accommodations. Extended Stay America, Inc. is headquartered in Charlotte, North Carolina.”

STAY Company Profile

Extended Stay America, Inc. (Extended Stay), incorporated on July 8, 2013, is an integrated owner/operator of company-branded hotels in North America. The Firm operates in hotel activities segment. The Company’s business operates in the extended stay lodging industry. The Firm owns and operates approximately 630 hotels comprising over 69,400 rooms located in approximately 40 states across the United States and in Canada. It owns and operates its hotels under its core brand, Extended Stay America, which serves the mid-price extended stay segment. In addition, the Company owns and operates over three Extended Stay Canada hotels. The Firm operates its hotels owned by ESH Hospitality, Inc. (ESH REIT). The hotels are operated by the Operating Lessees, subsidiaries of the Company and are managed by ESA Management LLC (ESA Management), a subsidiary of the Company. ESH Strategies, a subsidiary of the Company, owns the brands related to its business.

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