(Bloomberg) -- Blackstone Inc. and Starwood Capital Group are partnering to acquire 111 extended-stay hotels from Brookfield Asset Management, expanding a bet that the pandemic has increased demand for longer-term bookings.
The firms agreed to pay approximately $1.5 billion for the properties, which are branded as WoodSpring Suites, according to a person familiar with the matter. Blackstone and Starwood teamed up to acquire another portfolio of long-term hotels last year, when they bought Extended Stay America Inc. for roughly $6 billion.
Representatives for Blackstone and Starwood declined to comment. Brookfield didn’t immediately respond to a request for comment. The Wall Street Journal reported on the deal earlier Friday.
The clientele at extended stay hotels run the gamut from emergency responders and construction workers to guests who use their rooms as low-cost apartments.
The hotels usually offer kitchenettes and bigger living spaces, making them appealing for longer stays. The properties have become more popular during the pandemic, as safety concerns and the ability to work remotely have boosted demand.
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