ISS, which previously opposed the $6 billion deal on valuation grounds, has reversed its stance after the private equity firms increased their offer for Extended Stay by $1 per share to $20.50 per share earlier this week.

"We are also pleased to note that the transaction is now supported by a number of our large shareholders who had previously expressed concerns," Extended Stay Chairman Doug Geoga said in a statement.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Krishna Chandra Eluri)