CHARLOTTE, N.C. – February 27, 2018 — Extended Stay America, Inc. and ESH Hospitality, Inc. (NYSE:STAY) (together, the “Company”) and Three Wall Capital, LLC today announced the completed sale of 25 Extended Stay America hotels (“ESA hotels”) by the Company to an affiliate of Three Wall Capital, LLC.
Extended Stay America, Inc. will continue to manage the 25 ESA hotels over a 20 year contract. The 25 hotels represent over 2,400 rooms and are located in Ohio, Kentucky, Indiana and Texas. In conjunction with this transaction, Three Wall Capital, LLC has signed an agreement to build 15 additional ESA hotels over a seven year period.
Extended Stay America’s Chief Executive Officer, Jonathan Halkyard, commented, “We are proud to partner with a company that shares our commitment to quality, and are thrilled to welcome Three Wall Capital into the ESA system as our first third party owners.”
Three Wall Capital Founder and Managing Member Alan Kanders commented, “The acquisition of these assets along with our commitment to growing the ESA system provides us with a fantastic opportunity to partner with one of the industry’s premier brands and the leader in the mid-priced extended stay segment.”
Forward Looking Statements This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, future financial performance, including our 2018 outlook, the expected timing, completion and effects of any proposed asset disposals, expected performance, free cash flow, debt reduction, distribution growth, franchised new builds, owned new builds and other growth opportunities, as such, involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results or performance to differ from those projected in the forward-looking statements, possibly materially. For a description of factors that may cause the Company’s actual results or performance to differ from projected results or performance implied by forward-looking statements, please review the information under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in the Company’s combined annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 27, 2018 and other documents of the Company on file with or furnished to the SEC. Any forward-looking statements made in this release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, will have the expected consequences to, or effects on, the Company, its business or operations. Except as required by law, the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. We caution you that actual results may differ materially from what is expressed, implied or forecasted by the Company’s forward-looking statements.
