Greenwich-based Starwood Property Trust Inc. reached a $905 million agreement to take a controlling stake in Extended Stay Inc., a hotel operator that last year filed for bankruptcy protection from creditors.
Stamford-based File Mile Capital Partners L.L.C. is co-bidding with Starwood for Extended Stay.
Spartanburg, S.C.-based Extended Stay has nearly 700 hotels totaling 77,000 rooms under the multiple brands, including Extended StayAmerica and Homestead Studio Suites, the latter having locations in Norwalk and Shelton.
Starwood Property commenced operations last August, and initially focused its investments on commercial real estate, including the purchase of a loan portfolio from the failed Corus Bank.
Founder Barry Sternlicht also founded Starwood Hotels & Resorts Worldwide Inc., a White Plains, N.Y.-based company that is relocating its headquarters to Stamford in 2012.
Five Mile Capital is led by Gary Holloway, formerly with Greenwich Capital.
