One of the country’s largest private real estate investors, the Lightstone Group, will buy Extended Stay Hotels from the Blackstone private equity group for $8 billion, a sign that investors see strength ahead for the booming hotel sector. Lightstone will finance the deal with $1 billion in cash and $7 billion in debt.

Extended Stay Hotels – the biggest owner of mid-priced extended – stay hotels – owns 683 properties with 76,000 rooms in 44 states across the U.S. and in Canada. It operates properties under the five brands Extended Stay Deluxe, Extended Stay America, Homestead Studio Suites, StudioPlus and Crossland.