February 28, 2015 7:51 AM 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, 2013, the company had 684 hotels with approximately 76,200 rooms consisting of 632 hotels with approximately 69,600 rooms under the Extended Stay America brand; 3 hotels with 500 rooms under the Extended Stay Canada brand; 47 hotels with approximately 5,900 rooms under the Crossland Economy Studios brand; and 2 hotels with 265 rooms under the Hometown Inn 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

Phone:

980-345-1600

Key Executives for Extended Stay America, Inc.

Chief Executive Officer and Director
Age: 60
Total Annual Compensation: $900.0K
Chief Financial Officer
Age: 49
Total Annual Compensation: $1.7M
Executive Vice President of Pricing & Revenue Optimization
Age: 45
Total Annual Compensation: $373.3K
Chief Marketing Officer
Age: 46
Total Annual Compensation: $521.1K
Compensation as of Fiscal Year 2013.

Extended Stay America, Inc. Key Developments

Extended Stay America, Inc. Announces Unaudited Consolidated Earnings and Operating Results for the Fourth Quarter and Year Ended December 31, 2014; Reports Impairment of Long-Lived Assets for the Fourth Quarter of 2014; Provides Earnings Guidance for 2015

Extended Stay America, Inc. announced unaudited consolidated earnings and operating results for the fourth quarter and year ended December 31, 2014. Total revenues for the three months ended December 31, 2014 increased 5.2% over the comparable period in 2013 to $282.7 million. Net loss was $15.4 million, compared to a net loss of $33.0 million in the comparable period in 2012. Adjusted EBITDA increased $2.8 million to $123.4 million, representing 2.4% growth over the comparable period in 2013. Net income for the three months ended December 31, 2014 was $28.0 million, compared to a net loss of $15.4 million in the comparable period in 2013. Income from operations was $68,700,000 against $53,250,000 a year ago. Income before income tax was $34,874,000 against loss before tax of $23,358,000 a year ago. Net loss attributable to common shareholders was $58,305,000 against $10,943,000 a year ago. The company invested $47.3 million in capital expenditures during the fourth quarter of 2014. EBITDA was $115,580,000 against $96,780,000 a year ago. For the year ended December 31, 2014, total revenues increased 7.1% over 2013 to $1,213.5 million. Adjusted EBITDA increased $38.1 million to $556.7 million, an increase of 7.3%. For the year ended December 31, 2014, net income was $150.6 million, compared to $82.7 million in the comparable period in 2013. Income from operations was $348,738,000 against $312,125,000 a year ago. Income before income tax was $195,611,000 against $77,666,000 a year ago. Net income attributable to common shareholders was $39,596,000 against $86,231,000 a year ago. The company invested $173.2 million in capital expenditures during the year ended December 31, 2014. EBITDA was $532,182,000 against $480,178,000 a year ago. Revenue per available room for the three months ended December 31, 2014 grew 5.3% over the comparable period in 2013, driven by an improvement in average daily rate (“ADR”) of 7.8% offset by an occupancy decline of 170 bps to 68.8%. The lower occupancy was the result of a strategic reduction in longer-term length of stay business, as the Company continues to seek to optimize its customer mix. ADR growth was driven by a combination of price increases and the ongoing shift toward shorter-stay, higher profit generating guests. For the year ended December 31, 2014, RevPAR grew 7.1% over the comparable period in 2013, driven by an improvement in ADR of 7.0% and a 10 bps increase in occupancy to 74.3%. For the year 2015, the company expects total revenue to increase 5% to 7% to $1.275 billion to $1.3 billion, adjusted EBITDA is expected to range from $585 million to $600 million, representing approximately 5% to 8% growth over 2014, depreciation and amortization of $190 million to $197.5 million, net interest expense of $127 million to $132 million, effective tax rate of approximately 23%, net income to range from $183.8 million to $205.6 million and capital expenditures of $190 million to $210 million. For the quarter, the company reported impairment of long-lived assets of $2,300,000.

Extended Stay America, Inc. to Report Q4, 2014 Results on Feb 26, 2015

Extended Stay America, Inc. announced that they will report Q4, 2014 results Pre-Market on Feb 26, 2015

Extended Stay America, Inc., Q4 2014 Earnings Call, Feb 26, 2015

Extended Stay America, Inc., Q4 2014 Earnings Call, Feb 26, 2015

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