Extended Stay America reported a year-over-year
gain in average daily rate but a slight drop in occupancy during the third
quarter. ADR increased 0.2 percent to $69.01, while occupancy dipped 40 basis
points to 79 percent. Hurricanes Harvey and Irma slightly lifted results,
according to CEO Gerry Lopez, but business demand remained soft. The company's plan
to franchise new and existing ESA properties is on track, and the company is closing
a deal to sell 25 hotels. However, Lopez said it's too soon to share additional
details. Revenue decreased 1 percent year over year to $350.9 million, while
net income increased 16 percent to $66.3 million.
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