ESA Releases 2Q Report

FT. LAUDERDALE— Extended Stay America has reported its operating results for the three months and six months ended June 30, 2001. Excluding the impact of costs related to the relocation of the company’s headquarters to South Carolina, net income for 2Q was $23.1 million, $0.24 per diluted share, an increase of 9% compared to the same time last year. Including the relocation, net income for the quarter was $20.4 million or $0.21 per diluted share. Revenue for 2Q was $143.1 million, 7% greater than the same period last year. EBITDA increased to $74.6 million (52% of revenue) for the quarter, excluding the headquarters relocation costs, an increase of 6% compared to the same quarter in 2000. The company opened five Extended StayAmerica Efficiencey Studio hotels during the quarter resulting in a total of 405 operating hotels. Additionally, there are 38 hotels under construction— four of which are expected to open in the 3Q and 11 are slated for completion in 4Q.