Bankrupt hotel change Extended Stay is to re-enter business after securing US$400m in a further sign of a recovery in the hotel real estate market. Investment firms Centerbridge Partners and Paulson & Co have agreed to invest in the long-stay specialist following its filing for Chapter 11 last June.
Extended Stay America, Inc. (NYSE: ESA) today reported the results of its operations for the three months and for the year ended December 31, 1997. Net income for the fourth quarter was $3.6 million or $.04 per share. Revenue more than tripled to $43.2 million as compared to $13.3 million for the fourth quarter last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) of $13.7 million for the quarter was more than six times the amount reported for the fourth quarter last year.