Extended Stay America, Inc. and ESH Hospitality, Inc. Announces Executive Appointments, Effective January 5, 2015
Dec 17 14
Extended Stay America, Inc. announced that Jonathan Halkyard will be appointed Chief Financial Officer of Extended Stay America and its subsidiary, ESH Hospitality, Inc. ('ESH REIT' and together with Extended Stay America, the 'company'). Mr. Halkyard has served as both Chief Operating Officer and Interim CFO overseeing the company's operations and finance organizations while the company initiated a search for a permanent CFO following the resignation of its previous CFO last July. The company also announced that Tom Bardenett is joining Extended Stay America and will be appointed Chief Operating Officer. Mr. Bardenett is a seasoned hospitality executive with over twenty eight years of industry experience having worked most recently with Interstate Hotels and Resorts as President of Crossroads Hospitality, its select-service division comprising more than 250 hotels. John Dent will join the Company as General Counsel. Mr. Dent previously worked for Hilton Worldwide for fourteen years, most recently as Senior Vice President and Deputy General Counsel. He will be responsible for the Company’s legal and risk functions while also serving as Corporate Secretary. The appointments of Halkyard, Bardenett and Dent are all effective January 5, 2015.
Extended Stay America, Inc. Announces Resignation of Ross W. McCanless as Chief Legal Officer and General Counsel, Effective November 30, 2014
Nov 18 14
On November 14, 2014, Ross W. McCanless, Chief Legal Officer and General Counsel of Extended Stay America, Inc. provided the company with notice of his resignation, effective as of November 30, 2014, to accept a position with another company.
Extended Stay America, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Provides Earnings Guidance for Fiscal 2014; Reports Operating Results for Third Quarter and Nine Months Ended September 30, 2014
Nov 7 14
Extended Stay America, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2014. Total revenues for the three months ended September 30, 2014 increased 7.9% over the comparable period in 2013 to $338.6 million. Adjusted EBITDA for the three months ended September 30, 2014 increased $13.0 million to $163.1 million representing an 8.7% increase over the comparable period in 2013. Net income for the three months ended September 30, 2014 was $60.2 million, compared to net income of $46.6 million in the comparable period in 2013. The company invested $40.2 million in capital expenditures during the third quarter of 2014. Income from operations was $113,590,000 against $100,035,000 a year ago. Income before income taxes was $79,155,000, against $47,025,000 a year ago.
For the nine months ended September 30, 2014, total revenues increased 7.7% over the comparable period in 2013 to $930.8 million. For the nine months ended September 30, 2014, Adjusted EBITDA increased $35.2 million to $433.3 million, an increase of 8.8%. For the nine months ended September 30, 2014, net income was $122.6 million, compared to $98.0 million in the comparable period in 2013. The company invested capital expenditures of $125.9 million year-to-date, which includes capital renovations, regular maintenance capital and information technology projects. Income from operations was $280,038,000 against $258,875,000 a year ago. Income before income taxes was $160,737,000, against $101,024,000 a year ago.
The company is updating its outlook for 2014 as follows: total revenues are expected to increase 6.8% to 7.3% to approximately $1.210 to $1.216 billion. Adjusted EBITDA is expected to range between $550 to $560 million, representing approximately 6% to 8% growth over 2013. Depreciation and amortization of approximately $185 to $188 million. Interest expense of approximately $150 million. Total capital expenditures for 2014 are expected to be approximately $170 to $180 million. Net income is anticipated to range from approximately $145.5 to $154.9 million.
Revenue per available room ("RevPAR") for the three months ended September 30, 2014 increased 8.2% over the comparable period in 2013, driven by an improvement in average daily rate ("ADR") of 7.4% and an increase in occupancy to 79.3% as compared to 78.7% in the comparable period in 2013. ADR growth was driven primarily by a combination of price increases and a shift in customer mix toward shorter stay, higher profit generating guests.
For the nine months ended September 30, 2014, RevPAR increased 7.6% over the comparable period in 2013, driven by an increase in ADR of 6.7% and an increase in occupancy to 76.1% from 75.5%.