ESA boosts pipeline by 18 per cent in Q2

George Sell George Sell Uploaded 07 August 2019

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USA: Extended Stay America (ESA) has recorded revenues of $323.7 million in Q2 2019, while boosting its pipeline by nearly a fifth.

Announcing the company's Q2 results, president and CEO Jonathan Halkyard said: “We are pleased with the significant progress in our growth plans during the quarter with our total hotel pipeline increasing by 18 per cent in the second quarter to 8,700 rooms, or approximately 13 per cent of existing supply, and successfully opening our first franchise conversion hotel.”

Q2 highlights included:
• Net income of $59.7 million
• Total revenues of $323.7 million
• Comparable system-wide RevPAR increased 0.1 per cent
• RevPAR Index gain of 1.5 per cent excluding hurricane-related markets and renovation disruption
• Adjusted EBITDA of $153.6 million
• Adjusted funds from operations of $0.53 per diluted Paired Share
• Adjusted paired share income of $0.32 per diluted Paired Share

Halkyard continued: “After extensive exploration of a variety of possible transformative transactions to which our Boards of Directors have been, and remain, open, our Boards have concluded that the terms currently available for such transactions do not presently provide a superior alternative to the opportunity presented by the aggressive pursuit of our ESA 2.0 strategy, including steps to accelerate the franchising portion of that strategy.”

“We believe our shares are significantly undervalued at recent trading prices and have asked our Boards to increase the Company’s remaining authorisation to more than $260 million, which they have approved. With the review concluded, we expect to return a significant amount of capital to shareholders in the second half of 2019 and in 2020,” he added.

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