Tuesday 27 April, 2021
ESA shareholder vote set for June 8 US: Extended Stay America has set June 8 as the date for a shareholder vote on its $6 billion acquisition by a 50/50 joint venture between Blackstone Real Estate Partners and Starwood Capital Group.
EDITOR'S COMMENT
• So Extended Stay America’s crunch date is set for June 8. That is the day shareholders will vote on whether to accept the ESA board’s recommendation of a $6 billion acquisition of the company by a JV comprised of Blackstone and Starwood Capital.
The deal would comfortably be the biggest in the extended stay sector but it has come in for fierce criticism from those - including major shareholders and even two of ESA’s board directors - who say the price undervalues the company and that the deal is badly timed, as travel begins its post-pandemic recovery.
Tarsadia Capital, one of ESA’s largest shareholders with around 3.9 per cent of the REIT's shares, has filed a preliminary proxy statement to solicit votes against the proposed sale.
It is likely to have support from fellow shareholders Hawk Ridge Capital Management, SouthernSun and River Road, who between them own more than seven per cent of ESA’s stock. Whether opponents of the deal can generate enough support from smaller and more opportunistic investors to make a difference remains to be seen, but the dissenters are not going to go quietly.
• Don't forget that the entry deadline for the 2021 Serviced Apartment Awards is this Friday, April 30th. The awards have quickly established themselves as a highlight of the industry calendar, and indeed for many of us, the 2020 awards in early March were the last gathering of any size that we attended.
The awards will be presented at a ceremony in London on June 24th. For more information and to enter, visit www.servicedapartmentawards.com
• Scroll down for more of the week's news.
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Katie Houghton
Group head of sales: +44 (0)7535 135 116
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