Extend America
A Bismarck, ND–based wireless communications provider.
| Date | Investors | Amount | Round |
|---|---|---|---|
| N/A | €0.0 | round | |
$9.5m | Series B | ||
| Total Funding | 000k | ||
Extended Stay America operates as a significant player in the mid-priced extended-stay hotel segment across North America. The company was established on January 9, 1995, in Fort Lauderdale, Florida, by Wayne Huizenga and George D. Johnson, Jr. Both founders brought experience from their previous executive roles at Viacom and its subsidiary, Blockbuster LLC, identifying a market need for affordable lodging for stays of a week or longer. The first hotels opened in August 1995, and the company went public with an IPO in December of the same year.
The company's business model focuses on providing travelers with a home-like experience, which is reflected in its suite designs. Each suite is equipped with a full kitchen, including a refrigerator, microwave, and stovetop, alongside free Wi-Fi and on-site laundry facilities. This caters to business and leisure travelers, as well as individuals who are relocating or temporarily displaced. By concentrating on longer-term guests, the company aims for high occupancy rates, which helps to create a more predictable revenue stream and minimize operational expenses associated with frequent guest turnover. Revenue is generated from nightly and weekly room rates, with discounts offered for longer stays to incentivize extended bookings.
Over the years, the company has expanded its portfolio, which includes owned, operated, and franchised properties. In 2021 and 2022, it introduced two new brands, Extended Stay America Premier Suites and Extended Stay America Select Suites, to cater to different value points within the extended-stay market. The company has experienced several ownership changes, including a 2004 acquisition by The Blackstone Group and a period of bankruptcy in 2009, from which it emerged after being purchased by an investment consortium including Blackstone, Paulson & Co., and Centerbridge Partners. In June 2021, the company was taken private after being acquired by a partnership between Blackstone Real Estate and Starwood Capital Group.
Keywords: extended stay hotels, long-term lodging, corporate housing, hotel franchising, apartment-style hotels, mid-priced hotels, temporary housing, hotel chains, hospitality industry, business travel accommodations, pet-friendly hotels, suite hotels, full kitchen suites, weekly hotel rates, North American hotels, lodging industry, hotel investment, hospitality management, travel accommodations, hotel brands