January 23, 2017 6:36 PM ET

Hotels, Restaurants and Leisure

Company Overview of Extended Stay America, Inc.

Company Overview

Extended Stay America, Inc. develops, owns, and operates hotels in the United States and Canada. As of December 31, 2015, the company had 629 hotels with approximately 69,400 consisting of 626 hotels with approximately 68,900 rooms under the Extended Stay America brand; and 3 hotels with 500 rooms under the Extended Stay Canada brand. It serves customers in the mid-priced extended stay segment. Extended Stay America, Inc. was founded in 1995 and is headquartered in Charlotte, North Carolina.

11525 North Community House Road

Suite 100

Charlotte, NC 28277

United States

Founded in 1995

4,000 Employees

Phone:

980-345-1600

Key Executives for Extended Stay America, Inc.

Chief Executive Officer, President and Director
Age: 57
Total Annual Compensation: $756.2K
Chief Financial Officer
Age: 51
Total Annual Compensation: $560.7K
Chief Operating Officer
Age: 52
Total Annual Compensation: $675.0K
Chief Human Resources Officer and Executive Vice President
Age: 48
Total Annual Compensation: $413.0K
Compensation as of Fiscal Year 2015.

Extended Stay America, Inc. Key Developments

Extended Stay America, Inc. Presents at Barclays 2016 Eat, Sleep, Play - It's Not All Discretionary, Dec-06-2016 09:00 AM

Extended Stay America, Inc. Presents at Barclays 2016 Eat, Sleep, Play - It's Not All Discretionary, Dec-06-2016 09:00 AM. Venue: Barclays headquarters, 745 Seventh Avenue, New York, NY 10019, United States. Speakers: Gerardo I. Lopez, Chief Executive Officer, President and Director.

Extended Stay America, Inc. Reports Unaudited Consolidated Earnings and Operating Results for the Third Quarter and Nine Months Ended September 30, 2016; Revises Earnings Guidance for the Year 2016; Provides Earnings Guidance for the Fourth Quarter of 2016

Extended Stay America, Inc. reported unaudited consolidated earnings and operating results for the third quarter and nine months ended September 30, 2016. For the quarter, the company reported total revenues of $354,521,000 compared to $360,516,000 a year ago. Income from operations was $121,340,000 compared to $115,818,000 a year ago. Income before income tax expense was $72,932,000 compared to $79,518,000 a year ago. Net income attributable to common shareholders was $46,556,000 or $0.23 per diluted share compared to $37,656,000 or $0.18 per diluted share a year ago. Adjusted EBITDA was $185,733,000 compared to $181,408,000 a year ago. Comparable hotel adjusted EBITDA was $185,733,000 compared to $172,897,000 a year ago. Net income decreased due to the 53 hotel portfolio sale in December 2015, an increase in depreciation expense due to renovations, and higher interest expense due to debt extinguishment costs related to refinancing activity during the quarter, partially offset by a decrease in income tax expense. Adjusted paired share income for the three months ended September 30, 2016 was $71.5 million, or $0.36 per diluted paired share, compared to $66.6 million, or $0.33 per diluted paired share, in the same period in 2015. Capital expenditures for the third quarter totaled $56.5 million, including $23.9 million on renovations and $28.9 million in maintenance capital. For the nine months period, the company reported total revenues of $974,868,000 compared to $988,418,000 a year ago. Income from operations was $289,808,000 compared to $303,019,000 a year ago. Income before income tax expense was $159,415,000 compared to $199,009,000 a year ago. Net income attributable to common shareholders was $124,331,000 or $0.61 per diluted share compared to $117,187,000 or $0.57 per diluted share a year ago. Adjusted EBITDA was $473,191,000 compared to $475,984,000 a year ago. Comparable hotel adjusted EBITDA was $473,191,000 compared to $451,793,000 a year ago. Adjusted paired share income for the nine months ended September 30, 2016 was $160.3 million, or $0.79 per diluted paired share, compared to $163.8 million, or $0.80 per diluted paired share, in the same period in 2015. Capital expenditures for the first 9 months of 2016 totaled $166.5 million. Net debt was approximately $2.47 billion at the end of the quarter. For the quarter, the company reported occupancy of 79.4% compared to 78.3% a year ago. ADR was $68.84 compared to $64.95 a year ago. RevPAR was $54.65 compared to $50.83 a year ago. For the nine months, the company reported occupancy of 75.2% compared to 75.3% a year ago. ADR was $67.09 compared to $62.38 a year ago. RevPAR was $50.47 compared to $46.95 a year ago. The company revised earnings guidance for the year 2016. For the year, the company now expects total revenues of $1,261 million to $1,267 million, net income of $153 million to $166 million, adjusted EBITDA of $601 million to $606 million, net interest expense of $164 million to $166 million, effective tax rate of 17.5% to 18.5% and capital expenditures of $220 million to $235 million as compared to total revenues of $1,257 million to $1,272 million, net income of $162 million to $188 million, adjusted EBITDA of $595 million to $610 million, net interest expense of $153 million to $158 million, effective tax rate of 15.0% to 16.0% and capital expenditures of $240 million to $260 million as previously guided. For the fourth quarter of 2016, the company expects total revenue of $286 million to $292 million, which represents growth of approximately 1% to 3% over comparable hotel revenue in the fourth quarter of 2015. The company expects adjusted EBITDA of $128 million to $133 million during the fourth quarter, representing 4.6% to 8.7% adjusted EBITDA growth.

Extended Stay America, Inc. and ESH Hospitality, Inc. Declare Cash Distribution or the Third Quarter of 2016, Payable on November 22, 2016

Extended Stay America, Inc. and ESH Hospitality, Inc. announced that their boards of directors have declared a combined cash distribution of $0.19 per paired share for the third quarter of 2016. This includes a distribution of $0.03 per share payable to ESH Hospitality, Inc.’s Class A and Class B common shareholders and a distribution of $0.16 per share payable to Extended Stay America, Inc.’s common shareholders. These distributions will be payable on November 22, 2016 to shareholders of record as of November 8, 2016.

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