Extended Stay America's comparable systemwide revenue per
available room grew just 0.1 percent year over year in the second quarter to
$53.94, driven by an increase in occupancy from 77.6 percent to 79.8 percent but
mitigated by a 2.7 percent decrease in average daily rate to $67.63. For the first
half of the year, RevPAR declined 0.7 percent year over year to $50.36, driven
by a 2.8 percent decline in ADR to $66.63 but mitigated by an increase in
occupancy from 74 percent to 75.6 percent. Net income declined 9 percent year
over year in the second quarter to $59.7 million and decreased 8.9 percent year
over year for the half to $88.1 million. As of June 30, 71 hotels, including
company-owned and third-party properties, are in ESA's pipeline, which totaled
8,676 rooms. The number of franchised hotels in the pipeline rose from 43 at
the end of the first quarter to 52 at the end of the second quarter. The
company lowered its 2019 RevPAR guidance from a range of flat to 2 percent to a
range of 1 percent contraction to 0.5 percent growth. ESA also reduced its net
income guidance from a range of $188 million to $212 million to a range of $183
million to $202 million.
RELATED: Extended Stay America Q1 results