Blackstone Inc. and Starwood Capital Group are partnering to acquire 111 hotels from Brookfield Asset Management, expanding a bet that the pandemic has increased demand for longer-term bookings.
The firms agreed to pay approximately $1.5 billion for the properties, which are branded as WoodSpring Suites, according to people familiar with the matter. Blackstone and Starwood teamed up to acquire another portfolio of long-term hotels last year, when they bought Extended Stay America Inc. for roughly $6 billion.
Representatives for Blackstone, Starwood and Brookfield declined to comment. The Wall Street Journal reported on the deal earlier Friday.
Brookfield Said to Explore Hotels Sale for Up to $1.5 Billion
The clientele at extended stay hotels run the gamut from emergency responders and construction workers to guests who use their rooms as low-cost apartments. The hotels usually offer kitchenettes and bigger living spaces, making them appealing for longer stays.
The properties have become more popular during the pandemic, as safety concerns and the ability to work remotely boosted demand. They’ve also become more attractive to investors.
Brookfield acquired the hotel portfolio it is selling in 2018, paying roughly $750 million for the real estate.