Extended Stay America reported downbeat first-quarter
earnings. Revenue decreased 6.7 percent to $277.7 million compared with the
same period a year ago. The company attributed the decrease to asset
dispositions in 2018. Adjusting for those dispositions, revenue decreased 0.8
percent. Net income decreased 8.7 percent to $28.4 million, partially due to a 1.6
percent decline in comparable systemwide revenue per available room to $46.74.
This was driven by a 3 percent decline in average daily rate to $65.50.
Occupancy increased from 70.3 percent to 71.4 percent. As of March 31, the
company had a pipeline of 60 hotels, representing approximately 7,300 rooms.
Its 2019 guidance for RevPAR is flat to 2 percent, with net income ranging
between $188 million to $212 million.
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