Extended Stay America reported a year-over-year gain in
average daily rate but a slight dip in occupancy during the first quarter. ADR
rose 4 percent to $67.56, while occupancy fell 20 basis points to 70.3 percent.
ESA president and CEO Jonathan Halkyard said the results are a continuance of fourth-quarter
strength. Nevertheless, the company's revenue per available room growth outlook
for the year remains unchanged, at between 1 percent and 3 percent. Net income increased
94 percent year over year during the quarter to $31.1 million, driven in part by
increased revenue, a gain on asset sales and a lower effective tax rate. ESA also
hired Brian Nicholson as CFO. Nicholson steps into the role Halkyard left open
when he replaced former
CEO Gerry Lopez in December. David Clarkson, ESA head of treasury and financial
planning and analysis, had served as interim CFO.
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