Under the terms of the all-cash deal, the buyout company will pay $47.50 for each share, representing a 32 per cent premium compared with the company's closing stock price on Tuesday.
A statement from Blackstone said that it intended to invest heavily in the firm to grow the business and that it did not foresee any major asset sales in the future.
Bear Stearns provided financing pledges for the deal, while Goldman Sachs, Bank of America, and Deutsche Bank acted in an advisory capacity for Blackstone.
News of the acquisition, which is expected to be finalized in the fourth-quarter, follows a series of other funds moving to invest in the hotel industry.
Whitehall, a Goldman Sachs real estate fund, recently announced it is to acquire Equity Inn for $2.2 billion. Meanwhile, during June, Legacy Hotels Real Estate Investment Trust confirmed that it was in negotiations with a number of investment groups.
Last month Blackstone raised $4.1 billion through an initial public offering.