With a key deadline looming in bankruptcy court, Goldman Sachs Group is close to a deal to provide $2.2bn in financing to a group led by Starwood Capital Group in its bid for hotel chain Extended Stay, according to people familiar with the matter.

The financing package, whose terms are being finalised, is a sign that big banks like Goldman are trying to flex their muscles in commercial real-estate lending as the market struggles to recover from its worst trough in decades. The proposed deal would be the largest mortgage-debt financing tied to a real-estate venture since the credit-market crisis intensified two years ago. About $1bn of the money would come from Goldman's partner in the deal, Citigroup, the people said.

Wall Street Journal