Private equity-owned mid-price hotel chain Extended Stay America has upped the amount it plans to raise in an IPO to $500m, well up on the $100m placeholder value it filed in July.
The business, which is backed by buyout firms Blackstone Group and Centerbridge Partners and hedge fund Paulson & Co, is North America’s largest owner-operator of company-branded hotels with 682 properties.
Its adjusted EBITDA for 2012 was $434.3m, total revenues $1bn and net income $22.3m.
Deutsche Bank, Goldman Sachs Group and JP Morgan Chase are acting as underwriters for the sale according to a US securities filing.
Extended Stay had filed for Chapter 11 bankruptcy protection in June 2009 after struggling to refinance the $7.6bn of debt it was saddled with through the $8bn buyout by Lightstone Group two years earlier.
It was also hit by falling occupancy rates in the wake of the financial crisis.
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