Extended Stay America and Three Wall Capital Complete Sale of 25 ESA Hotels to Three Wall Capital Affiliate

Charlotte, NC. February 28, 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.

About Extended Stay America

Extended Stay America, Inc. (“ESA”) is the largest integrated hotel owner/operator in North America.  Its subsidiary, ESH Hospitality, Inc. (“ESH”), is the largest lodging REIT in North America by unit and room count, with 599 hotels and approximately 66,000 rooms in the U.S. ESA manages all of ESH’s hotel properties and also manages 26 additional Extended Stay America hotels, providing over 8,000 jobs at Extended Stay America hotels and corporate headquarters. Extended Stay America® is the leading brand in the mid-priced extended stay segment, with approximately twice as many rooms as its nearest competitor. Visit www.esa.com for more information.

About Three Wall Capital

Founded in 2008 by Alan Kanders, a former Managing Director at Lehman Brothers, Three Wall Capital, LLC completed over $600 million in transactions in a principal investor capacity. Investments included several properties on the East Coast of the United States including the Quin (New York, NY), Mayflower Inn & Spa (Washington, CT), Aloft Hotel (Atlanta, GA), Coral Beach & Tennis Club and Horizons Cottages (Bermuda), three branded hotels in the Greater New York City area and 25 Extended Stay America hotels. Three Wall Capital continues to expand its holdings through value added acquisitions and new development.

Media Contact:

Rob Ballew

Terry Atkins

Judi Bikulege

Related News

Coming up in April 2018...

Guest Service: Empowering People

Excellent customer service is vitally important in all businesses but it is especially important for hotels where customer service is the lifeblood of the business. Outstanding customer service is essential in creating new customers, retaining existing customers, and cultivating referrals for future customers. Employees who meet and exceed guest expectations are critical to a hotel's success, and it begins with the hiring process. It is imperative for HR personnel to screen for and hire people who inherently possess customer-friendly traits - empathy, warmth and conscientiousness - which allow them to serve guests naturally and authentically. Trait-based hiring means considering more than just a candidate's technical skills and background; it means looking for and selecting employees who naturally desire to take care of people, who derive satisfaction and pleasure from fulfilling guests' needs, and who don't consider customer service to be a chore. Without the presence of these specific traits and attributes, it is difficult for an employee to provide genuine hospitality. Once that kind of employee has been hired, it is necessary to empower them. Some forward-thinking hotels empower their employees to proactively fix customer problems without having to wait for management approval. This employee empowerment—the permission to be creative, and even having the authority to spend money on a customer's behalf - is a resourceful way to resolve guest problems quickly and efficiently. When management places their faith in an employee's good judgment, it inspires a sense of trust and provides a sense of higher purpose beyond a simple paycheck. The April issue of the Hotel Business Review will document what some leading hotels are doing to cultivate and manage guest satisfaction in their operations.