8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (date of earliest event reported) – August 1, 2017

EXTENDED STAY AMERICA, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-36190		46-3140312
(State or other jurisdiction of incorporation or organization)	(Commission File Number)		(I.R.S. Employer Identification Number)
11525 N. Community House Road, Suite 100 Charlotte, North Carolina		28277
(Address of principal executive offices)		(Zip code)

Registrant’s telephone number, including area code (980) 345-1600

ESH HOSPITALITY, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-36191	27-3559821
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification Number)
11525 N. Community House Road, Suite 100 Charlotte, North Carolina		28277
(Address of principal executive offices)		(Zip code)

Registrant’s telephone number, including area code (980) 345-1600

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02. Results of Operations and Financial Condition.

On August 1, 2017, Extended Stay America, Inc. and ESH Hospitality, Inc. issued an earnings release announcing their results of operations for the three and six months ended June 30, 2017. A copy of the earnings release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in this Item 2.02.

The information contained under Item 2.02 of this Current Report on Form 8-K (including Exhibit 99.1) is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 7.01. Regulation FD Disclosure.

On August 1, 2017, Extended Stay America, Inc. and ESH Hospitality, Inc. held a conference call announcing their results of operations for the three and six months ended June 30, 2017. A copy of management’s presentation materials is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference in this Item 7.01.

The information contained under Item 7.01 of this Current Report on Form 8-K (including Exhibit 99.2) is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 8.01. Other Events.

On August 1, 2017, Extended Stay America, Inc. and ESH Hospitality, Inc. issued a press release announcing that the Board of Directors of ESH Hospitality, Inc. declared a cash distribution of $0.14 per share for the second quarter of 2017, payable to ESH Hospitality, Inc.’s Class A and Class B common shareholders. Also, the Board of Directors of Extended Stay America, Inc. declared a cash distribution of $0.07 per share for the second quarter of 2017, payable to Extended Stay America, Inc.’s common shareholders. These distributions will be payable on August 29, 2017 to shareholders of record as of August 15, 2017. A copy of the press release is attached as Exhibit 99.3 to this Current Report on Form 8-K and is incorporated herein by reference in this Item 8.01.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Exhibit Description
99.1	Earnings release of Extended Stay America, Inc. and ESH Hospitality, Inc., dated August 1, 2017, announcing results for the three and six months ended June 30, 2017.
99.2	Management’s presentation materials, dated August 1, 2017.
99.3	Press release of Extended Stay America, Inc. and ESH Hospitality, Inc., dated August 1, 2017, announcing distributions for second quarter of 2017.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, each of the Registrants has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	EXTENDED STAY AMERICA, INC.
Date: August 1, 2017	By:	/s/ John R. Dent
		Name: John R. Dent
		Title: General Counsel

	ESH HOSPITALITY, INC.
Date: August 1, 2017	By:	/s/ John R. Dent
		Name: John R. Dent
		Title: General Counsel

EXHIBIT INDEX

Exhibit Number	Exhibit Description
99.1	Earnings release of Extended Stay America, Inc. and ESH Hospitality, Inc., dated August 1, 2017, announcing results for the three and six months ended June 30, 2017.
99.2	Management’s presentation materials, dated August 1, 2017.
99.3	Press release of Extended Stay America, Inc. and ESH Hospitality, Inc., dated August 1, 2017, announcing distributions for the second quarter of 2017.

EX-99.1

EXTENDED STAY AMERICA REPORTS SECOND QUARTER 2017 RESULTS

-Net Income of $49.7 million

-Adjusted EBITDA¹ grows 5.0% to $172.8 million

-Hotel Operating Margin expands by 90 basis points to 56.7%

CHARLOTTE, N.C. - August 1, 2017 (BUSINESS WIRE) - Extended Stay America, Inc. (NYSE:STAY) (the “Company”)today announced consolidated results for the three and six months ended June 30, 2017.

Second Quarter 2017 Highlights

• Comparable Hotel² Revenue Per Available Room (“RevPAR”) grew 2.4% to $53.04

• Net Income of $49.7 million

• Adjusted EBITDAincreased 5.0% to $172.8 million

• Adjusted Paired Share Income¹ per diluted Paired Share of $0.31

Six Months 2017 Highlights

• Comparable Hotel RevPAR grew 2.3% to $49.44

• Net income of $65.8 million

• Adjusted EBITDA increased 5.2% to $302.5 million

• Adjusted Paired Share Income per diluted Paired Share of $0.46

The Company’s Chief Executive Officer, Gerry Lopez, commented, “We were pleased with our results in the second quarter. Margin expansion combined with our steady RevPAR increase allowed us to once again deliver strong adjusted EBITDA growth and our third quarter in a row of triple-digit flow-through.”

Mr. Lopez continued, “With our renovation program completed in May, we now turn our focus towards ESA 2.0 - asset sales, franchised new builds as well as owned and operated new builds. We are very excited about the interest we’ve received since our announcement and kickoff at the NYU Hospitality Conference in early June, and are currently in negotiations with a significant number of parties for both hotel block sales as well as deals to build a significant number of new franchised ESA hotels. We are also pressing forward with ESA owned development, with 4 signed purchase agreements for land for owned balance sheet development in 2018 and 2019.”

¹ See “Disclosure Regarding Non-GAAP Financial Measures” for an explanation of non-GAAP measures included herein (i.e., Hotel Operating Profit, Hotel Operating Margin, EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, Adjusted FFO per diluted Paired Share, Paired Share Income, Adjusted Paired Share Income and Adjusted Paired Share Income per diluted Paired Share).

² Comparable Hotels include the 625 Extended Stay America hotels owned and operated during the full three and six month periods ended June 30, 2017 and 2016.

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Financial and Operating Results

Total revenues for the three months ended June 30, 2017 increased 1.7% over the same period in 2016 to $338.4 million. Total revenues were impacted by the sale of four hotels in early May 2017 with approximately $2.6 million less revenue than the same period in 2016. Total revenues for the six months ended June 30, 2017 grew 1.5% to $629.4 million.

Comparable Hotel RevPAR for the three months ended June 30, 2017 grew 2.4% over the same period in 2016, driven by an improvement in occupancy of 220 basis points to 78.9% while Average Daily Rate (“ADR”) declined slightly by 0.5%. Comparable Hotel RevPAR for the six months ended June 30, 2017 grew 2.3% to $49.44 driven by a 150 basis point increase in occupancy and a 0.2% increase in ADR compared to the same period in 2016.

Hotel Operating Margin for the three months ended June 30, 2017 was 56.7% compared to 55.8% in the same period in 2016. Hotel Operating Margin flow-through, defined as the change in Hotel Operating Profit¹ divided by the change in total hotel revenues, was 110.9%. Hotel Operating Margin for the six months ended June 30, 2017 expanded 150 basis points to 54.8% on 156.4% Hotel Operating Margin flow-through.

Net income for the three months ended June 30, 2017 was $49.7 million compared to $61.4 million in the same period in 2016. Net income during the quarter was impacted by a non-cash impairment charge of $7.9 million, a $1.9 million loss on four properties sold in May 2017 and a sharp increase in income tax expense due to a one-time favorable impact to our tax rate in the same period in 2016, partially offset by an increase in other income. Income tax expense for the three months ended June 30, 2017 was $15.9 million compared to $7.4 million in the same period in 2016. Net income for the six months ended June 30, 2017 was $65.8 million compared to $76.1 million in the same period in 2016. Income tax expense for the six months ended June 30, 2017 was $20.4 million compared to $10.3 million in the same period in 2016.

Adjusted EBITDA for the three months ended June 30, 2017 increased 5.0% over the same period in 2016 to $172.8 million. Adjusted EBITDA, a non-GAAP measure, excludes equity-based compensation of $3.6 million, non-cash impairment charge of $7.9 million, $1.9 million loss on sale of hotel properties and other net expenses of $4.2 million. This quarterly result comes after an estimated lost contribution of $1.5 million related to four hotels sold in early May 2017 for the remainder of the quarter compared to the prior year period. Adjusted EBITDA for the six months ended June 30, 2017 increased 5.2% over the same period in 2016 to $302.5 million.

Adjusted Funds From Operations (“FFO”)¹ for the three months ended June 30, 2017 was $101.9 million, a decrease of 1.6% from the same period in 2016. Adjusted FFO fell due to a significantly lower tax rate in the same period in 2016 related to a one-time favorable income tax adjustment. Adjusted FFO for the three months ended June 30, 2017 per

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diluted Paired Share was $0.53 compared to $0.51 in the same period in 2016. Adjusted FFO, a non-GAAP measure, represents FFO¹, as adjusted, attributable to the consolidated enterprise, whose representative equity security is a Paired Share. A Paired Share entitles its holder to participate in 100% of the common equity and earnings of both Extended Stay America, Inc. and ESH Hospitality, Inc. Adjusted FFO for the six months ended June 30, 2017 was $170.6 million compared to $167.9 million in the same period in 2016. Adjusted FFO per Paired Share for the first half of 2017 was $0.88 compared to $0.83 in the same period in 2016.

Adjusted Paired Share Income for the three months ended June 30, 2017 was $60.5 million, or $0.31 per diluted Paired Share, compared to $63.0 million, or $0.31 per diluted Paired Share, in the same period in 2016.Adjusted Paired Share Income, a non-GAAP measure, represents net income, as adjusted, attributable to the consolidated enterprise, whose representative equity security is a Paired Share. Adjusted Paired Share Income for the six months ended June 30, 2017 was $89.0 million compared to $88.8 million while Adjusted Paired Share Income per diluted Paired Share increased to $0.46 from $0.44 in the same period in 2016.

Capital Expenditures

The Company invested $44.6 million in capital expenditures during the second quarter of 2017 which includes $10.0 million in renovation capital and $33.2 million in maintenance capital. The Company completed 17 hotel renovations in the second quarter of 2017, with all 625 hotels having now been renovated.

Distribution and Share Repurchases

On August 1, 2017, the Boards of Directors of Extended Stay America, Inc. and ESH Hospitality, Inc., declared cash distributions totaling $0.21 per Paired Share for the second quarter of 2017. The distribution is comprised of $0.07 per Extended Stay America, Inc. common share and $0.14 per ESH Hospitality, Inc. Class A and B common share. The distributions are payable on August 29, 2017 to shareholders of record as of August 15, 2017.

During the quarter, the Company paid approximately $30.9 million to repurchase and retire approximately 1.8 million Paired Shares. The Company had approximately $106.3 million remaining for repurchases under the combined Paired Share repurchase program as of June 30, 2017.

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2017 Outlook

The Company’s outlook for 2017 is updated as follows:

Full Year 2017		Updated Outlook				Previous Outlook
in millions, except %	Low			High		Low		High
Total Revenues	$		1,278	$	1,303	$	1,285	$	1,310
Comparable RevPAR % Δ			1.5%		3.5%		1.5%		3.5%
Net Income	$		161	$	174	$	175	$	188
Adjusted EBITDA	$		620	$	635	$	625	$	640
Adjusted EBITDA % Δ			0.7%		3.1%	1.5%		4.0%
Depreciation and Amortization	$		233	$	233	$	233	$	233
Net Interest Expense	$		130	$	130	$	130	$	130
Effective Tax Rate			23%		24%		23%		24%
Capital Expenditures	$		150	$	180	$	150	$	180

The Company’s updated outlook reflects the lost hotel contribution related to four hotels sold in early May 2017 for the remainder of 2017, estimated at approximately $5 million of Adjusted EBITDA.

Webcast and Conference Call Details

The Company will host a conference call on August 1, 2017 at 8:30 a.m. Eastern Time. The conference call will be webcast simultaneously in the Investor Relations section of the Company’s website at www.aboutstay.com. A replay of the call will be available for 90 days following the webcast on the Company’s website.

Alternatively, the conference call can be accessed by dialing 1-877-705-6003 for domestic callers or 1-201-493-6725 for international callers. A telephone replay will be available from shortly after the call until August 15, 2017, and can be accessed by dialing 1-844-512-2921 for domestic callers or 1-412-317-6671 for international callers. The passcode for the replay is 13666819.

Disclosure Regarding Non-GAAP Financial Measures

Hotel Operating Profit, Hotel Operating Margin, EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, Adjusted FFO per diluted Paired Share, Paired Share Income, Adjusted Paired Share Income and Adjusted Paired Share Income per diluted Paired Share (collectively, the “Non-GAAP Financial Measures”), which are detailed in the reconciliation tables that accompany this release, are used by the Company as supplemental performance measures. The Company believes these measures provide useful information to investors regarding our results of operations and allow investors to evaluate the ongoing operating performance of our hotels and facilitate comparisons between the Company and other lodging companies, hotel owners and capital-intensive companies, including those which include a REIT as part of their legal entity structure. The Non-GAAP Financial Measures are not recognized terms under U.S. GAAP.  These measures as presented may not be comparable to measures calculated by other companies. These measures should not be considered as alternative measures of, or superior to, operating profit, net income, net income

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per share or any other measure of the Company, Extended Stay America, Inc. or ESH Hospitality, Inc. calculated in accordance with U.S. GAAP.  The Company’s presentation of the Non-GAAP Financial Measures does not replace the presentation of the Company’s consolidated financial results and other disclosures prepared in accordance with U.S. GAAP.

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 2017 outlook, the expected timing, completion and effects of any proposed asset disposals, expected performance, free cash flow, debt reduction, distribution growth, asset sales, 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 28, 2017 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 over 620 hotels and approximately 68,000 rooms in the U.S. ESA manages all of ESH’s hotel properties, providing over 8,000 jobs at hotel properties 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.

Contacts
Investors:	Media:
Rob Ballew	Terry Atkins
(980) 345-1546	(980) 345-1648
investorrelations@esa.com	tatkins@esa.com

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EXTENDED STAY AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016
(In thousands)
(Unaudited)
Three Months Ended								Six Months Ended
June 30,								June 30,
2017			2016			% Variance		2017			2016			% Variance
							REVENUES:
$	332,608		$	327,833		1.5%	Room revenues	$	618,416		$	610,970		1.2%
5,755			4,956			16.1%	Other hotel revenues	10,938			9,377			16.6%
338,363			332,789			1.7%	Total revenues	629,354			620,347			1.5%
							OPERATING EXPENSES:
148,911			149,078			(0.1)%	Hotel operating expenses	290,571			294,638			(1.4)%
25,430			23,988			6.0%	General and administrative expenses	51,737			48,940			5.7%
57,804			55,011			5.1%	Depreciation and amortization	115,475			108,319			6.6%
7,934			—			n/a	Impairment of long-lived assets	20,357			—			n/a
240,079			228,077			5.3%	Total operating expenses	478,140			451,897			5.8%
(1,897		)	—			n/a	LOSS ON SALE OF HOTEL PROPERTIES	(1,897		)	—			n/a
2,055			—			n/a	OTHER INCOME	2,056			18			11,322.2%
98,442			104,712			(6.0)%	INCOME FROM OPERATIONS	151,373			168,468			(10.1)%
1,073			114			841.2%	OTHER NON-OPERATING EXPENSE (INCOME)	(148		)	(764		)	(80.6)%
31,701			35,764			(11.4)%	INTEREST EXPENSE, NET	65,307			82,749			(21.1)%
65,668			68,834			(4.6)%	INCOME BEFORE INCOME TAX EXPENSE	86,214			86,483			(0.3)%
15,943			7,448			114.1%	INCOME TAX EXPENSE	20,426			10,344			97.5%
49,725			61,386			(19.0)%	NET INCOME	65,788			76,139			(13.6)%
2,050			(657		)	(412.0)%	NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS (1)	9,088			1,636			455.5%
$	51,775		$	60,729		(14.7)%	NET INCOME ATTRIBUTABLE TO EXTENDED STAY AMERICA, INC COMMON SHAREHOLDERS	$	74,876		$	77,775		(3.7)%
$	0.27		$	0.30			NET INCOME PER EXTENDED STAY AMERICA, INC. COMMON SHARE - DILUTED	$	0.39		$	0.38
193,944			201,689				WEIGHTED-AVERAGE EXTENDED STAY AMERICA, INC. COMMON SHARES OUTSTANDING - DILUTED	194,372			203,029
(1) Noncontrolling interest in Extended Stay America, Inc. include approximately 43% and 45% of ESH REIT's common equity as of June 30, 2017 and 2016, respectively.
							CONSOLIDATED BALANCE SHEET DATA
							AS OF JUNE 30, 2017 AND DECEMBER 31, 2016
							(In thousands)
							(Unaudited)
								June 30,			December 31,
								2017			2016
							Cash and cash equivalents	$	56,232		$	84,158
							Restricted cash	$	21,325		$	21,614
							Total assets	$	4,071,151		$	4,180,304
							Total debt, net of unamortized deferred financing costs and debt discounts (2)	$	2,544,643		$	2,606,476
							Total equity	$	1,325,029		$	1,377,239
							(2) Unamortized deferred financing costs and debt discounts totaled approximately $52.8 million and $56.5 million as of June 30, 2017 and December 31, 2016, respectively.

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EXTENDED STAY AMERICA, INC.
COMPARABLE HOTEL OPERATING METRICS(1)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016
(Unaudited)
Three Months Ended					Six Months Ended
June 30,					June 30,
2017	2016	Variance			2017	2016	Variance
625	625	—		Number of hotels	625	625	—
68,780	68,780	—		Number of rooms	68,780	68,780	—
78.9%	76.7%	220 bps		Comparable Hotel Occupancy	74.7%	73.2%	150 bps
$67.21	$67.53	(0.5)%		Comparable Hotel ADR	$66.15	$66.04	0.2%
$53.04	$51.81	2.4%		Comparable Hotel RevPAR	$49.44	$48.31	2.3%
				Comparable Hotel Inventory:
625	530	95		Renovated Extended Stay America	625	530	95
—	95	(95)		Unrenovated Extended Stay America	—	95	(95)
625	625	—		Comparable Hotel number of hotels	625	625	—
				Comparable Hotel Renovation Displacement Data (in thousands, except percentages):
6,279	6,316	(37	)	Comparable Hotel available room nights	12,523	12,632	(109	)
8	57	(49	)	Comparable Hotel room nights displaced from renovation	97	179	(82	)
0.1%	0.9%	(80	) bps	% of Comparable Hotel available room nights displaced	0.8%	1.4%	(60	) bps
(1) Comparable Hotel operating metrics include the results of 625 Extended Stay America hotels owned and operated during the full three and six month periods ended June 30, 2017 and 2016.

EXTENDED STAY AMERICA, INC.
NON-GAAP RECONCILIATION OF ROOM REVENUES, OTHER HOTEL REVENUES AND
HOTEL OPERATING EXPENSES TO HOTEL OPERATING PROFIT AND HOTEL OPERATING MARGIN
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016
(In thousands)
(Unaudited)
Three Months Ended								Six Months Ended
June 30,								June 30,
2017			2016			Variance		2017			2016			Variance
$	332,608		$	327,833		1.5%	Room revenues	$	618,416		$	610,970		1.2%
5,755			4,956			16.1%	Other hotel revenues	10,938			9,377			16.6%
338,363			332,789			1.7%	Total hotel revenues	629,354			620,347			1.5%
146,363			146,973			(0.4)%	Hotel operating expenses (1)	284,553			289,637			(1.8)%
$	192,000		$	185,816		3.3%	Hotel Operating Profit	$	344,801		$	330,710		4.3%
56.7		%	55.8		%	90 bps	Hotel Operating Margin	54.8		%	53.3		%	150 bps
(1) Excludes loss on disposal of assets of approximately $2.5 million, $2.1 million, $6.0 million and $5.0 million, respectively.

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EXTENDED STAY AMERICA, INC.
NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016
(In thousands)
(Unaudited)
Three Months Ended								Six Months Ended
June 30,								June 30,
2017				2016				2017				2016
$	49,725			$	61,386		Net income	$	65,788			$	76,139
31,701				35,764			Interest expense, net	65,307				82,749
15,943				7,448			Income tax expense	20,426				10,344
57,804				55,011			Depreciation and amortization	115,475				108,319
155,173				159,609			EBITDA	266,996				277,551
3,646				2,939			Equity-based compensation	6,329				5,619
1,073			(1)	114		(2)	Other non-operating expense (income)	(148		)	(3)	(764		)	(4)
7,934				—			Impairment of long-lived assets	20,357				—
1,897				—			Loss on sale of hotel properties	1,897				—
3,125			(5)	1,997		(6)	Other expenses	7,019			(7)	5,052			(8)
$	172,848			$	164,659		Adjusted EBITDA	$	302,450			$	287,458
5.0		%					% growth	5.2		%
(1)  Includes loss related to interest rate swap of approximately $1.5 million and foreign currency transaction gain $0.4 million.
(2) Includes foreign currency transaction loss of approximately $0.1 million.
(3) Includes foreign currency transaction gain of approximately $0.4 million and loss related to interest rate swap of approximately $0.3 million.
(4) Includes foreign currency transaction gain of approximately $0.8 million.
(5) Includes loss on disposal of assets of approximately $2.5 million and costs incurred in connection with the second quarter 2017 secondary offerings of approximately $0.6 million.
(6) Includes loss on disposal of assets of approximately $2.1 million and transaction costs of approximately $(0.1) million due to the revision of an estimate related to the sale of 53 hotel properties in December 2015.
(7) Includes loss on disposal of assets of approximately $6.0 million and costs incurred in connection with the first and second quarter 2017 secondary offerings of approximately $1.0 million.
(8) Includes loss on disposal of assets of approximately $5.0 million and transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of the 53 hotel properties in December 2015.

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EXTENDED STAY AMERICA, INC.
NON-GAAP RECONCILIATION OF NET INCOME ATTRIBUTABLE TO EXTENDED STAY AMERICA, INC.
COMMON SHAREHOLDERS TO FUNDS FROM OPERATIONS, ADJUSTED FUNDS FROM OPERATIONS
AND ADJUSTED FUNDS FROM OPERATIONS PER DILUTED PAIRED SHARE
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016
(In thousands, expect per share and per Paired Share data)
(Unaudited)
Three Months Ended							Six Months Ended
June 30,							June 30,
2017			2016				2017			2016
$	0.27		$	0.30		Net income per Extended Stay America, Inc. common share - diluted	$	0.39		$	0.38
$	51,775		$	60,729		Net income attributable to Extended Stay America, Inc. common shareholders	$	74,876		$	77,775
(2,054		)	653			Noncontrolling interests attributable to Class B common shares of ESH REIT	(9,096		)	(1,644		)
56,649			53,918			Real estate depreciation and amortization	113,182			106,118
7,934			—			Impairment of long-lived assets	20,357			—
1,897			—			Loss on sale of hotel properties	1,897			—
(15,423		)	(11,754		)	Tax effect of adjustments to net income attributable to Extended Stay America, Inc. common shareholders	(31,697		)	(23,708		)
$	100,778		$	103,546		Funds from Operations	$	169,519		$	158,541
—			—			Debt modification and extinguishment costs	1,168			12,103
1,495			—			Loss on interest rate swap	253			—
(347		)	—			Tax effect of adjustments to Funds from Operations	(330		)	(2,772		)
$	101,926		$	103,546		Adjusted Funds from Operations	$	170,610		$	167,872
$	0.53		$	0.51		Adjusted Funds from Operations per Paired Share- diluted	$	0.88		$	0.83
193,944			201,689			Weighted average Paired Shares outstanding – diluted	194,372			203,029

9

EXTENDED STAY AMERICA, INC.
NON-GAAP RECONCILIATION OF NET INCOME ATTRIBUTABLE TO EXTENDED STAY AMERICA, INC.
COMMON SHAREHOLDERS TO PAIRED SHARE INCOME, ADJUSTED PAIRED SHARE
INCOME AND ADJUSTED PAIRED SHARE INCOME PER DILUTED PAIRED SHARE
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016
(In thousands, expect per share and per Paired Share data)
(Unaudited)
Three Months Ended June 30,									Six Months Ended June 30,
2017				2016					2017				2016
$	0.27			$	0.30			Net income per Extended Stay America, Inc. common share - diluted	$	0.39			$	0.38
$	51,775			$	60,729			Net income attributable to Extended Stay America, Inc. common shareholders	$	74,876			$	77,775
(2,054		)		653				Noncontrolling interests attributable to Class B common shares of ESH REIT	(9,096		)		(1,644		)
49,721				61,382				Paired Share Income	65,780				76,131
—				—				Debt modification and extinguishment costs	1,168				12,103
1,073			(1)	114			(2)	Other non-operating expense (income)	(148		)	(3)	(764		)	(4)
7,934				—				Impairment of long-lived assets	20,357				—
1,897				—				Loss on sale of hotel properties	1,897				—
3,125			(5)	1,997			(6)	Other expenses	7,019			(7)	5,052			(8)
(3,255		)		(460		)		Tax effect of adjustments to Paired Share Income	(7,093		)		(3,730		)
$	60,495			$	63,033			Adjusted Paired Share Income	$	88,980			$	88,792
$	0.31			$	0.31			Adjusted Paired Share Income per Paired Share – diluted	$	0.46			$	0.44
193,944				201,689				Weighted average Paired Shares outstanding – diluted	194,372				203,029
(1) Includes loss related to interest rate swap of approximately $1.5 million and foreign currency transaction gain of approximately $0.4 million.
(2) Includes foreign currency transaction loss of approximately $0.1 million.
(3) Includes foreign currency transaction gain of approximately $0.4 million and loss related to interest rate swap of approximately $0.3 million.
(4)  Includes foreign currency transaction gain of approximately $0.8 million.
(5)  Includes loss on disposal of assets of approximately $2.5 million and costs incurred in connection with the second quarter 2017 secondary offerings of approximately $0.6 million.
(6)  Includes loss on disposal of assets of approximately $2.1 million and transaction costs of approximately $(0.1) million due to the revision of an estimate related to the sale of 53 hotel properties in December 2015.
(7)  Includes loss on disposal of assets of approximately $6.0 million and costs incurred in connection with the first and second quarter 2017 secondary offerings of approximately $1.0 million.
(8)  Includes loss on disposal of assets of approximately $5.0 million and transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of the 53 hotel properties in December 2015.

10

EXTENDED STAY AMERICA, INC.
TOTAL REVENUES AND NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
FOR YEARS ENDED DECEMBER 31, 2016 (ACTUAL) AND 2017 (OUTLOOK)
(In thousands)
(Unaudited)
	Year Ended					Year Ending December 31, 2017
	December 31, 2016					(Outlook)
	(Actual)					Low				High
	$	1,270,593			Total revenues	$	1,278,000			$	1,303,000
	$	163,352			Net income	$	160,659			$	174,323
	164,537				Interest expense, net	130,000				130,000
	34,351				Income tax expense	50,735				52,071
	221,309				Depreciation and amortization	232,500				232,500
	583,549				EBITDA	573,894				588,894
	12,000				Equity-based compensation	12,500				12,500
	(1,576		)		Other non-operating income	(148		)		(148		)
	9,828				Impairment of long-lived assets	20,357				20,357
	—				Loss on sale of hotel properties	1,897				1,897
	11,857			(1)	Other expenses	11,500			(2)	11,500			(2)
	$	615,658			Adjusted EBITDA	$	620,000			$	635,000
					% growth	0.7		%		3.1		%
(1)	Includes loss on disposal of assets of approximately $10.7 million, costs incurred in connection with the fourth quarter 2016 secondary offerings of approximately $1.1 million and transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of 53 hotel properties in December 2015.
(2)	Includes loss on disposal of assets and other non-operating transaction costs.

11

EX-99.2

August 1, 2017 Extended Stay America, Inc. ESH Hospitality, Inc. Q2 2017 Earnings Summary

2 important disclosure information This presentation contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, future financial performance, including our 2017 outlook, the expected timing, completion and effects of any proposed asset disposals, expected performance, free cash flow, debt reduction, distribution growth, asset sales, franchised new builds, owned new builds and other growth opportunities, as such, involve known and unknown risks, uncertainties and other factors that may cause Extended Stay America, Inc.’s (the “Corporation”) and ESH Hospitality, Inc.’s (“ESH REIT,” and together with the Corporation, the “Company”) 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 28, 2017 and other documents of the Company on file with or furnished to the SEC. Any forward-looking statements made in this presentation 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. This presentation includes certain non-GAAP financial measures, including Hotel Operating Profit, Hotel Operating Margin, EBITDA, Adjusted EBITDA, Funds From Operations (“FFO”), Adjusted Funds From Operations (“Adjusted FFO”), Adjusted FFO per diluted Paired Share, Paired Share Income, Adjusted Paired Share Income and Adjusted Paired Share Income per diluted Paired Share. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with U.S. GAAP. Please refer to the appendix of this presentation for a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with U.S. GAAP, and to the Company’s combined annual report on Form 10-K filed with the SEC on February 28, 2017 for definitions of these non-GAAP measures.

3 1Comparable Hotels include the 625 Extended Stay America hotels owned and operated during the full the three and six month periods ended June 30, 2017 and 2016. 2 Net Income, Adjusted FFO and Adjusted Paired Share Income Per Diluted Paired Share were affected by a one time tax benefit in Q2 2016. Net Income this quarter was also affected by an impairment charge and loss on sale of hotels. 3See Appendix for Hotel Operating Margin, Adjusted FFO per diluted Paired Share, Adjusted EBITDA and Adjusted Paired Share Income per diluted Paired Share reconciliations. Q2 2017 Operating Results & Financial Highlights $51.81 $53.04 Q2 2016 Q2 2017 Comparable Hotel1 Revenue Per Available Room (“RevPAR”) $0.51 $0.53 Q2 2016 Q2 2017 Adjusted FFO per Diluted Paired Share2,3 +2.4% +2.4% $61.4 $49.7 Q2 2016 Q2 2017 Net Income (in millions)2 $164.7 $172.8 Q2 2016 Q2 2017 Hotel Operating Margin3 55.8% 56.7% Q2 2016 Q2 2017 Adjusted EBITDA (in millions) 3 +90bps +5.0% $0.31 $0.31 Q2 2016 Q2 2017 Adjusted Paired Share Income per Diluted Paired Share2,3

4 Other Q2 2017 Highlights Length of Stay Revenue Mix3 1-6 nights % 37% 38% 7-29 nights % 23% 21% 30+ nights % 41% 40% Q2 2017 Q2 2016 Capital Expenditures Hotel Operating Margin Flow-Through2 111% Q2 2017 1 Excludes dividends and repurchases related to Corporation preferred stock. 2 Defined as the D in Hotel Operating Profit / D in total hotel revenues. 3 Totals may not add to 100% due to rounding. Capital Return to Stakeholders 1 1

5 ESA 2.0 Updates New Build Owned & Operated Asset Dispositions New Build Franchisee Hotels » Completed 4 hotel asset sales for gross proceeds of $60.7 million in early May for a blended 12.7x TTM EBITDA sale multiple » At term sheet discussions with 8 experienced firms to purchase approximately 90 existing ESA hotels with an ESA franchise agreement » Recently completed our franchise disclosure document (“FDD”), valid in 36 states » Expect to file the FDD in the remaining 14 states in August » In discussions with 8 experienced firms to build as many as 85 or more new ESA 2.0 hotels » 4 signed purchase agreements for land with 4 more expected in August 2017 » Expect to begin construction in early 2018 on the first Company owned ESA 2.0 build

6 Quarterly Distribution and Select Balance Sheet Amounts Quarterly Distribution per Paired Share1 $0.19 $0.21 Q2 2016 Q2 2017 +10.5% Adjusted Net Debt / TTM Adjusted EBITDA Ratio3 4.1X 4.0X Q1 2017 Q2 2017 ¹ Distribution dates of August 25, 2016 and August 29, 2017, respectively. 2 Includes unrestricted cash only. 3 Net debt calculation is (total debt – total restricted and unrestricted cash). 4 Includes unamortized deferred financing costs and debt discounts that totaled approximately $54.6 million and $52.8 million as of March 31, 2017 and June 30, 2017, respectively. Cash Balance (in millions)2 $65 $56 Q1 2017 Q2 2017 Debt Outstanding (in millions)4 $2,650 $2,597 Q1 2017 Q2 2017

7 Q2 2017 Results, Q3 2017 and Full Year 2017 Guidance 1.5% to 3.5% 175$ 188$ 625$ 640$ 233$ 233$ 130$ 130$ 23% 24% 150$ 180$ Previous 2017 Guidance1 1Guidance as of Q1 2017 earnings call on April 27, 2017. Our guidance for Q2 2017 included the 4 hotels sold in early May for the entire quarter. The lost hotel contribution for the quarter was approximately $1.5 million for these hotels. 2On a Comparable Hotel basis. 3Guidance as of Q2 2017 earnings call on August 1, 2017. RevPAR % D shown on a Comparable Hotel basis. 4 Net Income guidance lowered due to impairment charge, loss on asset sales, and lost contribution from sold hotels. 5Adjusted EBITDA reduced by the approximate amount of lost contribution from four hotels sold in early May 2017 for the remainder of 2017. (in millions, except %) RevPAR % D 1.5% to 3.5% Net Income4 161$ 174$ Adjusted EBITDA5 620$ 635$ Depreciation and Amortization 233$ 233$ Net Interest Expense 130$ 130$ Effective Tax Rate 23% 24% Capital Expenditures 150$ 180$ Updated 2017 Guidance3 (in millions, except %) RevPAR % D 2% to 4% | 2.4% Adjusted EBITDA $170 to $175 | 172.8$ Q2 2017 Guidance1 | Actual1 (in millions, except ) Q3 2016 Actual 2 RevPAR % D 3.8% 1% to 3% Adjusted EBITDA $183.7 184$ to 190$ Q3 2017 Guidance 3

appendix

9 NON-GAAP RECONCILIATION OF ROOM REVENUES, OTHER HOTEL REVENUES AND HOTEL OPERATING EXPENSES TO HOTEL OPERATING PROFIT, HOTEL OPERATING MARGIN AND OPERATING METRICS FOR THE FOUR HOTELS SOLD IN MAY 2017 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Hotels Sold in May 2017 (4) (in USD) Room revenues 3,295$ 3,805$ 2,702$ 2,069$ 747$ Other hotel revenues 95 120 94 93 31 Total hotel revenues 3,390 3,925 2,796 2,162 778 Hotel operating expenses (1) 1,675 1,892 2,124 1,815 530 Hotel Operating Profit 1,715$ 2,033$ 672$ 347$ 248$ Hotel Operating Margin 50.6% 51.8% 24.0% 16.0% 31.9% (1) Excludes loss (gain) on disposal of assets of appproximately: 58 (6) 11 - - (In thousands) (Unaudited) Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Hotels sold in May 2017 (4) (in USD) Number of rooms 603 603 603 603 603 Occupancy 72.9% 81.6% 65.5% 58.5% 69.9% ADR $82.31 $84.03 $74.37 $70.83 $63.25 RevPAR $60.04 $68.58 $48.70 $41.42 $44.21 (Unaudited) Hotel Operating Metrics for the Four Hotels Sold in May 2017

10 NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016 2017 2016 2017 2016 $ 49,725 $ 61,386 Net income $ 65,788 $ 76,139 31,701 35,764 Interest expense, net 65,307 82,749 15,943 7,448 Income tax expense 20,426 10,344 57,804 55,011 Depreciation and amortization 115,475 108,319 155,173 159,609 EBITDA 266,996 277,551 3,646 2,939 Equity-based compensation 6,329 5,619 1,073 (1) 114 (2) Other non-operating expense (income) (148) (3) (764) (4) 7,934 - Impairment of long-lived assets 20,357 - 1,897 - Loss on sale of hotel properties 1,897 - 3,125 (5) 1,997 (6) Other expenses 7,019 (7) 5,052 (8) $ 172,848 $ 164,659 Adjusted EBITDA $ 302,450 $ 287,458 5.0% % growth 5.2% (In thousands) (Unaudited) Six Months Ended (5) Includes loss on disposal of assets of approximately $2.5 million and costs incurred in connection with the second quarter 2017 secondary offerings of approximately $0.6 million. (6) Includes loss on disposal of assets of approximately $2.1 million and transaction costs of approximately $(0.1) million due to the revision of an estimate related to the sale of 53 hotel properties in December 2015. (7) Includes loss on disposal of assets of approximately $6.0 million and costs incurred in connection with the first and second quarter 2017 secondary offerings of approximately $1.0 million. June 30, (8) Includes loss on disposal of assets of approximately $5.0 million and transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of the 53 hotel properties in December 2015. Three Months Ended June 30, (4) Includes foreign currency transaction gain of approximately $0.8 million. (1) Includes loss related to interest rate swap of approximately $1.5 million and foreign currency transaction gain of approximately $0.4 million. (2) Includes foreign currency transaction loss of approximately $0.1 million. (3) Includes foreign currency transaction gain of approximately $0.4 million and loss related to interest rate swap of approximately $0.3 million.

11 NON-GAAP RECONCILIATION OF ROOM REVENUES, OTHER HOTEL REVENUES AND HOTEL OPERATING EXPENSES TO HOTEL OPERATING PROFIT AND HOTEL OPERATING MARGIN FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016 2017 2016 Variance 2017 2016 Variance 332,608$ 327,833$ 1.5% Room revenues 618,416$ 610,970$ 1.2% 5,755 4,956 16.1% Other hotel revenues 10,938 9,377 16.6% 338,363 332,789 1.7% Total hotel revenues 629,354 620,347 1.5% 146,363 146,973 (0.4)% Hotel operating expenses (1) 284,553 289,637 (1.8)% 192,000$ 185,816$ 3.3% Hotel Operating Profit 344,801$ 330,710$ 4.3% 56.7% 55.8% 90 bps Hotel Operating Margin 54.8% 53.3% 150 bps (1) Excludes loss on disposal of assets of approximately $2.5 million, $2.1 million, $6.0 million and $5.0 million, respectively. June 30, Six Months EndedThree Months Ended June 30, (In thousands) (Unaudited)

12 NON-GAAP RECONCILIATION OF NET INCOME ATTRIBUTABLE TO EXTENDED STAY AMERICA, INC. COMMON SHAREHOLDERS TO FUNDS FROM OPERATIONS, ADJUSTED FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS PER DILUTED PAIRED SHARE FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016 2017 2016 2017 2016 $ 0.27 $ 0.30 Net income per Extended Stay America, Inc. common share - diluted $ 0.39 $ 0.38 $ 51,775 $ 60,729 Net income attributable to Extended Stay America, Inc. common shareholders $ 74,876 $ 77,775 (2,054) 653 Noncontrolling interests attributable to Class B common shares of ESH REIT (9,096) (1,644) 56,649 53,918 Real estate depreciation and amortization 113,182 106,118 7,934 - Impairment of long-lived assets 20,357 - 1,897 - Loss on sale of hotel properties 1,897 - (15,423) (11,754) Tax effect of adjustments to net income attributable to Extended Stay America, Inc. common shareholders (31,697) (23,708) 100,778 103,546 Funds from Operations 169,519 158,541 - - Debt modification and extinguishment costs 1,168 12,103 1,495 - Loss on interest rate swap 253 - (347) - Tax effect of adjustments to Funds from Operations (330) (2,772) $ 101,926 $ 103,546 Adjusted Funds from Operations $ 170,610 $ 167,872 $ 0.53 $ 0.51 Adjusted Funds from Operations per Paired Share – diluted $ 0.88 $ 0.83 193,944 201,689 Weighted average Paired Shares outstanding – diluted 194,372 203,029 Three Months Ended Six Months Ended June 30, June 30, (In thousands, expect per share and per Paired Share data) (Unaudited)

13 NON-GAAP RECONCILIATION OF NET INCOME ATTRIBUTABLE TO EXTENDED STAY AMERICA, INC. COMMON SHAREHOLDERS TO PAIRED SHARE INCOME, ADJUSTED PAIRED SHARE INCOME AND ADJUSTED PAIRED SHARE INCOME PER DILUTED PAIRED SHARE FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016 2017 2016 2017 2016 $ 0.27 $ 0.30 Net income per Extended Stay America, Inc. common share - diluted $ 0.39 $ 0.38 51,775$ 60,729$ Net income attributable to Extended Stay America, Inc. common shareholders 74,876$ 77,775$ (2,054) 653 Noncontrolling interests attributable to Class B common shares of ESH REIT (9,096) (1,644) 49,721 61,382 Paired Share Income 65,780 76,131 - - Debt modification and extinguishment costs 1,168 12,103 1,073 (1) 114 (2) Other non-operating expense (income) (148) (3) (764) (4) 7,934 - Impairment of long-lived assets 20,357 - 1,897 - Loss on sale of hotel properties 1,897 - 3,125 (5) 1,997 (6) Other expenses 7,019 (7) 5,052 (8) (3,255) (460) Tax effect of adjustments to Paired Share Income (7,093) (3,730) 60,495$ 63,033$ Adjusted Paired Share Income 88,980$ 88,792$ 0.31$ 0.31$ Adjusted Paired Share Income per Paired Share – diluted 0.46$ 0.44$ 193,944 201,689 Weighted average Paired Shares outstanding – diluted 194,372 203,029 (4) Includes foreign currency transaction gain of approximately $0.8 million. (5) Includes loss on disposal of assets of approximately $2.5 million and costs incurred in connection with the second quarter 2017 secondary offerings of approximately $0.6 million. (6) Includes loss on disposal of assets of approximately $2.1 million and transaction costs of approximately $(0.1) million due to the revision of an estimate related to the sale of 53 hotel properties in December 2015. (7) Includes loss on disposal of assets of approximately $6.0 million and costs incurred in connection with the first and second quarter 2017 secondary offerings of approximately $1.0 million. (8) Includes loss on disposal of assets of approximately $5.0 million and transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of the 53 hotel properties in December 2015. (3) Includes foreign currency transaction gain of approximately $0.4 million and loss related to interest rate swap of approximately $0.3 million. (In thousands, expect per share and per Paired Share data) (1) Includes loss related to interest rate swap of approximately $1.5 million and foreign currency transaction gain of approximately $0.4 million. (Unaudited) June 30, Six Months EndedThree Months Ended June 30, (2) Includes foreign currency transaction loss of approximately $0.1 million.

14 TOTAL REVENUES AND NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA FOR THE YEARS ENDED DECEMBER 31, 2016 (ACTUAL) AND 2017 (OUTLOOK) Year Ended December 31, 2016 (Actual) Low High $ 1,270,593 Total revenues 1,278,000$ 1,303,000$ $ 163,352 Net income 160,659$ 174,323$ 164,537 Interest expense, net 130,000 130,000 34,351 Income tax expense 50,735 52,071 221,309 Depreciation and amortization 232,500 232,500 583,549 EBITDA 573,894 588,894 12,000 Equity-based compensation 12,500 12,500 (1,576) Other non-operating income (148) (148) 9,828 Impairment of long-lived assets 20,357 20,357 - Loss on sale of hotel properties 1,897 1,897 11,857 (1) Other expenses 11,500 (2) 11,500 (2) $ 615,658 Adjusted EBITDA $ 620,000 $ 635,000 % growth 0.7% 3.1% (1) (2) Includes loss on disposal of assets and other non-operating transaction costs. (Outlook) Includes loss on disposal of assets of approximately $10.7 million, costs incurred in connection with the fourth quarter 2016 secondary offerings of approximately $1.1 million and transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of 53 hotel properties in December 2015. Year Ending December 31, 2017 (In thousands) (Unaudited)

EX-99.3

Exhibit 99.3

EXTENDED STAY AMERICAANNOUNCES DISTRIBUTIONS

FOR SECOND QUARTER 2017

- Distribution of $0.21 per Paired Share -

CHARLOTTE, N.C. – August 1, 2017 (BUSINESS WIRE)— Extended Stay America, Inc. (NYSE:STAY)  and its subsidiary, ESH Hospitality, Inc., today announced that their Boards of Directors have declared a combined cash distribution of $0.21 per Paired Share for the second quarter of 2017. This includes a distribution of $0.14 per share payable to ESH Hospitality, Inc.’s Class A and Class B common shareholders and a distribution of $0.07 per share payable to Extended Stay America, Inc.’s common shareholders. These distributions will be payable on August 29, 2017 to shareholders of record as of August 15, 2017.

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 and distribution growth, as such, may involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ from those projected in the forward-looking statements, possibly materially. For a description of factors that may cause actual results or performance to differ from any implied by forward-looking statements, please review the information under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in the combined annual report on Form 10-K of Extended Stay America, Inc. and ESH Hospitality, Inc. (collectively, the “Company”) filed with the SEC on February 28, 2017 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, that they 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 outcomes and 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., the largest owner/operator of company-branded hotels in North America, owns and operates 625 hotels in the U.S. comprising approximately 68,800 rooms and employs over 8,000 employees at its hotel properties and headquarters. The Company’s core brand, Extended Stay America®, serves the mid-priced extended stay segment. Visit www.esa.com for more information about the Company and its services.

Contacts

Investors:

Rob Ballew

(980) 345-1546

investorrelations@extendedstay.com