CHARLOTTE, NC—Extended Stay America Inc. and ESH Hospitality Inc. consolidated results for the three and six months ended June 30. Net income totaled $65.6 million compared with $49.7 million in the same period in 2017.
ESA continues to evolve with its ESA 2.0 strategy, which calls for franchising of the brand. Extended Stay America’s President/CEO Jonathan Halkyard said, “The second quarter marked another quarter of progress on our growth strategy. In the last few months, we grew our total pipeline to 34 hotels—including 19 franchise hotels—we purchased a hotel for conversion, purchased an additional site for a new hotel and we expect to purchase several more sites in the second half of 2018.”
With growth in the pipeline and in terms of changes to ESA’s corporate structure, Halkyard said, “I am reluctant to put any kind of timeline on this. I only want to assure our shareholders that it is a topic that we pay close attention to, and is one that we and our board continue to evaluate not only in the context of evaluation, but also in terms of performance to the portfolio.”
Second Quarter 2018 Highlights
- Total revenues of $336.5 million
- RevPAR grew 1.6% to $53.Rev
- Adjusted EBITDA of $167.3 million
- Adjusted FFO of $0.58 per diluted Paired Share, an increase of 10.0%
- Adjusted Paired Share Income 1 of $0.35 per diluted Paired Share, an increase of 11.7%
First Half 2018 Highlights
- Total revenues of $634.3 million
- Comparable system-wide RevPAR grew 2.6% to $50.72
- Adjusted EBITDA of $299.5 million
- Adjusted FFO of $1.00 per diluted Paired Share, an increase of 13.4%
- Adjusted Paired Share Income of$0.54 per diluted Paired Share, an increase of 18.8%
Halkyard also stated that Q2 system-wide RevPAR growth slowed from the pace in first quarter and was up 1.6%. “The slowdown in RevPAR growth as compared to the first quarter was not unanticipated and was primarily due to a reduction in business related to the hurricanes in Florida and Houston last fall,” he said.