Blackstone, Starwood buying 111 WoodSpring Suites

Blackstone Inc. and Starwood Capital Group are back in business together again as the Wall Street Journal reported Friday that the two real estate titans are going to acquire for US$1.5 billion 111 WoodSpring Suites extended-stay hotels from Brookfield Asset Management. The deal could close as early as next month.

Believing in the renewed interest in drive-to travel and growth in extended remote work, the duo that last year bought Extended Stay America for US$6 billion is pushing its chips in again to acquire properties franchised by Choice Hotels International that features extra space and in-room kitchens.

STR data from 2021 reflects the trend as it reported extended-stay businesses in the U.S. hit 73.2% occupancy, compared to 55.9% for all other segments.