Blackstone-led venture buys hotel debt

Blackstone, in a venture with Centerbridge Partners and Paulson & Co, has bought $300 million of junior debt in 14 hotels currently owned by Columbia Sussex Group, Kentucky businessman Bill Yung III’s hotel group, according to a report in the Wall Street Journal. Columbia Sussex had bought the hotels from Blackstone for $1.4 billion in 2006. Blackstone Group has not yet commented on the deal. Earlier this week, Blackstone, Centerbridge, and Paulson purchased hotel group Extended Stay Inc in a deal worth $3.925 billion.