Blackstone and Starwood Capital Group Return to Wall Street for $2B Hotel Refi

Blackstone and Starwood Capital Group, two of the biggest names in real estate investment, are back in the spotlight with their latest joint venture, ESH Hospitality. The investment giants are preparing to launch a $1.94 billion CMBS offering secured by debt on 220 Extended Stay America hotels in 33 states, according to a KBRA loan analysis. This portfolio, which represents a large portion of the brand's U.S. footprint, totals 24,560 keys and is expected to dominate the market. JPMorgan Chase and Citi are set to originate half of the debt, with Goldman Sachs, Wells Fargo, Bank of America, and a Deutsche Bank affiliate splitting the remaining portion. This move solidifies Blackstone and Starwood's continued dominance in the real estate market, as they strategically work together to secure the best deals. According to Bisnow, "the notes are likely to close at the end of October." This signals a strong and confident move from Blackstone and Starwood, who have a long history of successful investments and deals. However, this deal has not come without its fair share of controversy. The CMBS market has been facing scrutiny in recent years, with critics claiming it played a role in the 2008 financial crisis. Despite this, Blackstone and Starwood are pushing forward, utilizing their industry connections and expertise to secure yet another major deal. As the real estate market continues to thrive, these two giants are making sure they stay at the top of the game. Originally reported by The Real Deal.