Extended Stay America turned in a relatively positive third-quarter performance, finishing $31.5 million in the black and reporting a comparable systemwide revenue per available room decline of just 14.7 percent year over year to $46.75. Of the large publicly traded hotel companies, only Marriott International reported a larger profit, at $100 million.
The RevPAR results "are a significant improvement from both the decline in the second quarter, and it exceeded the guidance we provided in early August," ESA president and CEO Bruce Haase said during a Tuesday earnings call. "This performance was driven by the strength of our singular focus on the extended-stay segment … which we believe to be a competitive advantage."
Haase added that relative RevPAR improved each month during the quarter, and occupancy has been running close to 2019 levels since early August. The company reported comparable systemwide occupancy for the quarter at 79.8 percent.
"When the pandemic ends, most of those current demand drivers will remain, but we'll add back additional sources of higher-rated demand, like various consulting customers, event-driven business and corporate business in the seven-to-29-day segment that should allow us to maintain higher occupancies at higher rates, which we believe will translate into higher profitability," he said.
ESA provided fourth-quarter guidance of an 11 percent to 15 percent year-over-year decline in comparable systemwide RevPAR. Its outlook for full-year 2020 RevPAR is a 15.5 percent to 16.5 percent year-over-year decline, while it forecast a range of full-year net income of $31 million to $45 million.
Year to date, the company has opened eight hotels for a total of 892 rooms. It also is in the process of developing a new website to be launched in the first quarter, Haase noted.
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