US: Extended Stay America and ESH Hospitality have announced the completed sale of 25 Extended Stay America hotels to an affiliate of Three Wall Capital LLC.
Extended Stay America will continue to manage the 25 properties over a 20-year contract. The 25 hotels represent more than 2,400 rooms and are located in Ohio, Kentucky, Indiana and Texas. In conjunction with this transaction, Three Wall Capital LLC has signed an agreement to build 15 additional ESA hotels over a seven-year period.
Extended Stay America CEO Jonathan Halkyard said: “We are proud to partner with a company that shares our commitment to quality, and are thrilled to welcome Three Wall Capital into the ESA system as our first third-party owners.”
Three Wall Capital founder and managing member Alan Kanders said: “The acquisition of these assets along with our commitment to growing the ESA system provides us with a fantastic opportunity to partner with one of the industry’s premier brands and the leader in the mid-priced extended stay segment.”
Founded in 2008 by Kanders, a former managing director at Lehman Brothers, Three Wall Capital completed more than $600 million in transactions in a principal investor capacity. Investments included several properties on the East Coast of the United States including the Quin (New York, NY), Mayflower Inn & Spa (Washington, CT), Aloft Hotel (Atlanta, GA), Coral Beach & Tennis Club and Horizons Cottages (Bermuda), three branded hotels in the Greater New York City area.
