Extended Stay Comes to Market Amid Lodging Recovery

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Nov. 13 (Bloomberg) -- Jim Donald, CEO at Extended Stay America, discusses his company’s first day of trading after raising $565 million in an initial public offering and the recovery of the lodging industry. He speaks on Bloomberg Television’s “Market Makers.”

If i understand the question, it is kind of loud.

I think we are in the middle of this recovery with the hotel industry.

The middle innings.

You are trying to attract more shorter stay guests.

You are upgrading, changing features and amenities.

In doing so, will you have to change icing -- change your pricing?

We have invested over $625 million in upgrading facilities.

Optimizing the customer experience is part of what we do.

The over 30 day stay as well as the 1-6 days.

We think of providing the best price value relationship in the industry.

Are you going to have to hike up rates?

Many people staying with extended-stay, they are not personally paying, it is companies.

Companies are tight on budget.

Lex we are taking a rate increase, but we are keeping the price by a relationship as compared to competitors.

What are you doing to go after shorter stay guests?

Renovation, $625 million, this has allowed us to go out to corporations across america and create this value for them as well.

You can from starbucks.

What do you bring to extended stay in learning how to franchise, branding, it made starbucks a household name.

The franchise model is not in our next, nor is it in starbucks' mix.

What i learned at starbucks is that capital investment plus an engaged culture of associates creates growth.

We are investing capital and making our workplace better than it has ever been.

What does it say to the market when "the smart money is quick private equity giants say it is time to sell.

Is the value out?

I think our sponsors look at this as creating more value in the out years.

The best is yet to come with extended-stay.

What is the next big thing you're going to do with the money you've raised?

It makes our company stronger, we are taking that against our debt and in proving our balance sheet.

Good luck, congratulations on the ipo.

When you look at where priced and where it is trading today, do you think you priced too low?

I don't look at it like that.

I look at is that we are so proud of the quality of investors that we have here.

Our goal is to create value for them as we go forward.

All right.

This text has been automatically generated. It may not be 100% accurate.

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