Starwood Capital Group has announced the acquisition of a 50-hotel portfolio of economy extended stay U.S. locations from Mount Kellett Capital Management, to build upon its InTown Suites brand.
“The economy extended stay sector continues to outperform other hospitality sectors, including luxury, and today’s transaction marks another important step in our effort to capitalize on this growth opportunity,” says Starwood Capital Group’s acquisitions managing director, Suril Shah. “Since acquiring InTown, we have seen its valuation increase by more than 30 percent, and we are confident that the upward trajectory will continue.”
This 6,106-room deal includes locations in the Southeast, such as North Carolina, Florida, Texas, Georgia, and Alabama. With more than 189 locations and 24,153 suites, Starwood’s InTown Suites will be the largest owner of economy extended stay hotels in the U.S. upon closing.
“We are very focused on maintaining our leadership role by aggressively growing within our sector through acquisition and ground-up development,” says Jonathan Pertchik, CEO of InTown Suites. “We expect to apply the same discipline, process, and focus that InTown has used in its other acquisitions to continue to outperform competitors.”
