Hotel Portfolio Transaction

Extended Stay America Completes $285 Million Sale of Crossland Economy Studios

Extended Stay America

Extended Stay America, Inc. (NYSE:STAY) last week announced that subsidiaries of the Company, including subsidiaries of ESH Hospitality, Inc., the Company’s REIT subsidiary, completed the sale of 53 U.S. economy extended-stay hotels and Crossland Economy Studios intellectual property for $285.0 million in cash. The disposition of the 47 Crossland Economy Studios-branded hotels and six similarly positioned Extended Stay America-branded hotels completes the Company’s transition to a single brand.

In conjunction with this transaction, ESH REIT has repaid $86.1 million in debt associated with these hotel properties. The transaction results in both improved RevPAR and reduced leverage. The expected revenue impact on the fourth quarter due to the 53 hotel disposition is approximately $4.5 million. The expected Adjusted EBITDA impact is approximately $3.0 million due to loss of revenue and operating expenses associated with these hotel properties. Nothing in this release should be interpreted as affirming or updating the Company’s previously issued 2015 guidance.

Extended Stay America, Inc., the largest owner/operator of company-branded hotels in North America, owns and operates 629 hotels in the U.S. and Canada comprising approximately 69,400 rooms and employs over 8,500 employees at its hotel properties and headquarters. The Company’s brand, Extended Stay America®, serves the mid-priced extended stay segment. 

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