Extended Stay America Announces Repurchase of Preferred Shares

CHARLOTTE, N.C.–(BUSINESS WIRE)–Extended Stay America, Inc. (the “Company”) (NYSE:STAY) today announced
that it entered into a preferred share repurchase agreement with certain
selling stockholders affiliated with Centerbridge Partners, L.P. and The
Blackstone Group L.P. (the “Selling Stockholders”) pursuant to which the
Company repurchased directly from the Selling Stockholders 14,069 shares
of Series A Preferred Stock of the Company (the “Preferred Shares”). The
preferred share repurchase was effected in a private, non-underwritten
transaction at a price per share equal to $1,000 plus all accrued and
unpaid dividends thereon through and including the date of the
repurchase. The Company funded the preferred share repurchase from cash
on hand. The preferred share repurchase was approved by the Company’s
audit committee. After this preferred share repurchase, the Company has
7,133 Preferred Shares outstanding and the Selling Stockholders no
longer beneficially own any Preferred Shares. Following the closing of
the preferred share repurchase, the repurchased Preferred Shares will be
retired. The timing and method of any future Preferred Share repurchases
(other than in connection with the exercise of any put rights), will
depend on a variety of factors, including market conditions and the
Company’s financial condition and are subject to the discretion of
management.

The Company’s Chief Financial Officer, Jonathan Halkyard, commented, “We
are pleased to continue to improve our balance sheet and lower our cost
of capital. Since returning to the public markets in 2013 and including
this repurchase agreement, the Company has retired over $950 million in
debt and has refinanced the entire balance sheet into long dated, low
cost and flexible debt.“

Forward Looking Statements

This press release contains forward-looking statements within the
meaning of the federal securities laws. Statements related to, among
other things, goals, plans, objectives and future events, including the
repurchase of Preferred Shares by the Company, as such, may
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 any forward-looking statements, please
review the information under the headings “Cautionary Note Regarding
Forward-looking Statements” and “Risk Factors” included in the Company’s
and ESH Hospitality, Inc.’s (“ESH,” and together with the Company,
“STAY”) combined annual report on Form 10-K filed with the SEC on
February 28, 2017 and other documents of STAY on file with or furnished
to the SEC. Any forward-looking statements made in this press 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 or 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. (“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 68,800 rooms in the U.S.
ESA manages all of ESH’s properties, providing over 8,000 jobs at its
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.

Contacts

Extended Stay America, Inc.
Investors:
Rob Ballew,
980-345-1546
investorrelations@extendedstay.com
or
Media:
Terry
Atkins, 980-345-1648
tatkins@extendedstay.com