US: Extended Stay America has sold an extended stay hotel in Milpitas, California, for $65 million.
The hotel is now closed and the buyer expects to convert the hotel into permanent supportive housing for people who are homeless, despite considerable local opposition.
Extended Stay America’s president and CEO Bruce Haase, said: “This sale highlights the strong intrinsic value of our large, geographically diverse real estate portfolio. With the pace of development since the company’s founding, it is impossible to replicate our real estate portfolio today. We believe that our strategy to strategically curate our REIT assets at significantly accretive multiples, as evidenced by this transaction, will create significant shareholder value in the coming years.”
