Extended Stay America Enters Agreement to Dispose of 47 Crossland Economy Studios for $285 Million

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. September 22, 2015

CHARLOTTE, N.C. September 22, 2015

• $285 million sales price equals nearly 10x Adjusted EBITDA -

• Improves portfolio quality and sharpens focus on single brand -

• Special distribution expected -

• Re-affirms Third Quarter and Full Year 2015 Revenue and Adjusted EBITDA Guidance Ranges -

Extended Stay America, Inc. (NYSE:STAY) (the "Company") announced today that subsidiaries of the Company, including subsidiaries of ESH Hospitality, Inc. ("ESH REIT"), the Company's REIT subsidiary, signed a definitive agreement to dispose of 53 U.S. economy extended-stay hotels and Crossland Economy Studios intellectual property for $285 million in cash, subject to customary adjustments. The disposition of the 47 Crossland Economy Studios branded hotels and 6 similarly positioned Extended Stay America branded hotels will complete the Company's transition to a single, nationwide brand.

These 53 hotels to be sold have not been renovated under the Company's ongoing renovation program and generated RevPAR of $27.89 for the last twelve months ended June 30, 2015, compared with RevPAR of $45.95 generated by the remaining 629 hotels owned and operated by the Company over the same period. The 53 hotels to be sold generated approximately $29 million of Adjusted EBITDA1 for the last twelve months ended June 30, 2015. The transaction is expected to close in the fourth quarter of 2015, subject to customary closing conditions.

ESH REIT currently expects to use its net proceeds from the transaction to reduce debt and for future capital expenditures and/or acquisitions, in compliance with its existing debt agreements. In addition, ESH REIT expects to make a special one-time distribution approximately equal to the taxable gain on the sale. No distribution has yet been declared, and there can be no assurance that any distribution will be declared or paid. The Company expects the transaction will improve RevPAR and reduce leverage on a pro forma basis. Further details will be disclosed shortly after completion of the sale.

"We believe our strongest growth opportunity is within our Extended Stay America branded hotels. This transaction allows us to focus our resources on the renovation and marketing of a single brand, is financially attractive and improves our product quality and marketing effectiveness," stated Extended Stay America's Chief Financial Officer, Jonathan Halkyard.

About Extended Stay America

Extended Stay America

Extended Stay America, Inc., the largest owner/operator of company-branded hotels in North America, owns and operates 682 hotels in the U.S. and Canada comprising 76,000 rooms and employs over 9,000 employees at its hotel properties and headquarters. The Company's core brand, Extended Stay America®, serves the mid-priced extended stay segment. Visit www.extendedstay.com for more information about the Company and its services.

Contact:
for Investors
Rob Ballew
[email protected]
980-345-1546

for Media
Terry Atkins
[email protected]
980-345-1648