Filing Summary: Extended Stay America, Inc: John Paulson’s Paulson & Co. Inc Opened Big New Position

Filing Summary: Extended Stay America, Inc: John Paulson's Paulson & Co. Inc Opened Big New Position

The New John Paulson’s Paulson & Co. Inc Holding in Extended Stay America, Inc

Paulson & Co. Inc filed with the SEC SC 13D/A form for Extended Stay America, Inc. The form can be accessed here: 000101359416001326. As reported in John Paulson’s Paulson & Co. Inc’s form, the filler as of late owns 16.8% or 33,003,258 shares of the Consumer Discretionary–company.

Extended Stay America, Inc stake is a new one for the for the hedge fund and it was filed because of activity on November 18, 2016. We feel this shows John Paulson’s Paulson & Co. Inc’s positive view for the stock. For a hedge fund managing $30.85 billion in assets and having 125+ active experts, we at Financialmagazine have no doubt the buy is a bullish signal.

The hedge fund is active investor in the Finance sector. In the manager’s last 13-F, we saw 25% of John Paulson’s Paulson & Co. Inc’s US equities portfolio is in this sector.

Reasons Why John Paulson’s Paulson & Co. Inc Bought – Extended Stay America, Inc Stock

Purpose of Transaction

Item 4 is hereby amended to add the following:

On June 5, 2015, Extended Stay America, Inc. and ESH Hospitality, Inc. filed a joint automatic shelf registration statement contemplating the sale by each of the Sponsors of Paired Shares totaling, together with Paired Shares sold by the other Sponsors, in the aggregate 142,960,388 Paired Shares.

On November 16, 2016, Extended Stay America, Inc. and ESH Hospitality, Inc. filed a prospectus supplement dated November 14, 2016, contemplating the sale by each of the Sponsors of Paired Shares totaling, together with Paired Shares sold by the other Sponsors, in the aggregate 12,750,000 Paired Shares (the “Secondary Offering”). The Secondary Offering closed on November 18, 2016.

In connection with the Secondary Offering, the Issuer and the Sponsors entered into an underwriting agreement (the “Underwriting Agreement”) with the underwriter named therein (the “Underwriter”). Pursuant to the Underwriting Agreement, the Sponsors sold in the aggregate 12,750,000 Paired Shares to the Underwriters. The foregoing description of the terms and conditions of the Underwriting Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of such document, which is attached as Exhibit 99.1 hereto, and is incorporated herein by reference.

In connection with the Secondary Offering, the Sponsors have also entered into a lock-up agreement (the “Lock-Up Agreement”) with the Issuer and the Underwriter, pursuant to which and subject to specified exceptions, they have agreed not to, among other things and subject to certain exceptions, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly any of the Paired Shares or securities convertible into or exchangeable for Paired Shares, for a period of 30 days after November 14, 2016 except with the prior written consent of

J.P. Morgan Securities LLC.

The foregoing description of the terms and conditions of the Lock-Up Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of such document, a form of which is attached as Exhibit 99.2 hereto, and is incorporated herein by reference.

Concurrent with the closing of the Secondary Offering, Extended Stay America, Inc. and ESH Hospitality, Inc. repurchased 425,000 Paired Shares from the Reporting Person at a price of $14.76 per Paired Share (the “Share Repurchase”).

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.

John Paulson’s Paulson & Co. Inc website.

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.

Parametric Port Lc reported 204,406 shares or 0% of all its holdings. The Massachusetts-based Cadence Mgmt Limited Com has invested 0.02% in Extended Stay America Inc (NYSE:STAY). Tiaa Cref Invest Limited Liability Company owns 2.84 million shares or 0.03% of their US portfolio. Cubist Systematic Strategies Ltd Company last reported 11,794 shares in the company. The Sweden-based Nordea Mngmt has invested 0% in Extended Stay America Inc (NYSE:STAY). Scopus Asset Mngmt L P last reported 350,000 shares in the company. Royal Fincl Bank Of Canada has invested 0% of its portfolio in Extended Stay America Inc (NYSE:STAY). Blackrock Inc owns 174,314 shares or 0% of their US portfolio. Cipher Capital L P holds 21,485 shares or 0.02% of its portfolio. Alpine Partners Vi Limited Liability Com reported 31,508 shares or 0.22% of all its holdings. Fdx has invested 0.01% of its portfolio in Extended Stay America Inc (NYSE:STAY). Ladenburg Thalmann Fin Services, a Florida-based fund reported 889 shares. Centerbridge Prtn Limited Partnership holds 30.56% of its portfolio in Extended Stay America Inc (NYSE:STAY) for 42.66 million shares. Blackrock Invest Ltd Liability Corp accumulated 35,167 shares or 0% of the stock. Winfield Assocs Incorporated holds 0% of its portfolio in Extended Stay America Inc (NYSE:STAY) for 90 shares.

Insider Transactions: Since October 4, 2016, the stock had 1 buy, and 3 sales for $211.55 million net activity. The insider Halkyard Jonathan S bought 10,000 shares worth $138,300. Blackstone Real Estate Partners VI.A-ESH L.P. also sold $70.56M worth of Extended Stay America Inc (NYSE:STAY) shares. PAULSON & CO. INC. sold $70.56 million worth of stock. 4.98 million shares were sold by Blackstone Real Estate Associates VI-ESH L.P., worth $70.56 million on Tuesday, October 4.

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 firm earned “Neutral” rating on Monday, September 26 by Goldman Sachs. As per Wednesday, August 17, the company rating was maintained by Citigroup. The firm has “Buy” rating given on Friday, July 31 by Deutsche Bank. The firm has “Buy” rating given on Wednesday, October 28 by Deutsche Bank. Robert W. Baird upgraded the stock to “Outperform” rating in Monday, August 3 report. The company was downgraded on Thursday, January 14 by M Partners. The stock of Extended Stay America Inc (NYSE:STAY) earned “Underperform” rating by Bank of America on Tuesday, July 21.

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.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with our FREE daily email newsletter.

Leave a Comment