US: Extended Stay America has announced a 2.5 per cent year-on-yer decline in revenue in its consolidated results for Q1 2021.
Extended Stay America has announced a 2.5 per cent year-on-yer decline in revenue in its consolidated results for Q1 2021.
Total revenues for the period were $259.6 million, a decrease of 2.5 per cent over the same period in 2020 and a decrease of 6.5 per cent over the same period in 2019.
Comparable system-wide RevPAR declined 1.7 per cent over the same period in 2020 to $43.56, driven by a 5.7 per cent decline in ADR, but partially offset by a 310 basis point increase in occupancy to 75 per cent. The Comparable system-wide RevPAR index was 130, a 21 per cent increase over the same period in 2020.
Net income for Q1 was $12.4 million compared to $7.8 million for the same period in 2020. The increase in net income was due to a gain on a sale of two hotel properties, partially offset by a decline in comparable system-wide RevPAR and merger transaction expenses.
Adjusted EBITDA for the three months to March 31, 2021 was $90.9 million, a decline of seven per cent.
As of March 31, 2021, the company had a pipeline of 51 hotels representing approximately 6,200 rooms. Two company-owned hotels and three franchised hotels opened during the first quarter of 2021.
The announcements come ahead of a June 8 shareholder vote on the company’s $6 billion proposed sale to a JV of Blackstone and Starwood Capital.
