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Polar investing $10 million in Extended Stay Hotels
25.6.07 15:48 By Arik Mirovsky
Polar Investments (TASE: PLR) is joining a group of investors buying the American chain Extended Stay Hotels for $8 billion.
Extended Stay Hotels operates via five brand names. Its hotels are located in 44 states and in Canada as well.
It is considered to be the biggest moderately-priced extended-stay lodging hotels chain in the United States.
Polar Investments says that its investment will comprise 4.76% of the total $8 billion investment in the chain. Its portion will be at the lowest-risk level and will total about $10 million, the Israeli company said.
Shareholders of that rank will be entitled to dividends and 26.5% of profits.
The investment group buying Extended Stay Hotels is headed by LightStone Group, one of the biggest private equity property groups in the world. Another major investor is Arbor Commercial Mortgage.
Polar International's general manager, Dubi Weiss, who also represents controlling shareholder Ziel Feldman in Israel, commented that the new owner - Feldman - wants to expand Polar's international business with major investment banks in the U.S.

Hotels and Serviced Apartment Reservations - Accommotel