Starwood’s group has agreed to invest $905 million in Extended Stay, and is bidding against a team led by investment companies Centerbridge Partners and Paulson & Co.
An investor group led by David Lichtenstein’s Lightstone Group bought Extended Stay in June 2007. Extended Stay was forced into bankruptcy last year after its projected cash flows declined amid the recession and it could not keep servicing more than $7 billion in debt.
Goldman was not immediately available for comment. Starwood declined comment. (Editing by Lincoln Feast)