Extended Stay America Secures $1.9B Amid US Market Slowdown

Extended Stay America, a hotel chain operating in the US and Canada, has secured a $1.9 billion loan commitment led by JPMorgan Chase, which leads a consortium of six lenders.

The loan will refinance debt tied to 220 Extended Stay America properties across 33 US states, encompassing a total of 24,560 rooms.

The loan is a commercial mortgage-backed security (CMBS) transaction, which is a type of financing where loans secured by income-producing commercial properties (such as hotels or office buildings) are bundled together and sold as investment securities to investors.

It is expected to have a two-year initial floating-rate term with three one-year extension options.

The loan requires monthly interest-only payments calculated based on the Secured Overnight Financing Rate plus approximately 2.5 percent. The proceeds will be used to refinance $1.8 billion of existing debt, part of a larger $4.6 billion securitization that originally included 560 properties.

This refinancing is a significant financial move for Extended Stay America amid a challenging US extended-stay hotel market.

According to CoStar, in August 2025, revenue per available room (RevPAR) declined 2 percent, marking five consecutive months of declines. Average daily rates fell to $124 in August, down 1.2 percent year-over-year, while occupancy dipped to 76 percent from a June peak of 78 percent.

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