Extended Stay America — Q3 2020 Earnings Presentation
15 slides from Extended Stay America's earnings presentation, Nov 9, 2020
Slide 1: Q3 2020 Earnings Summary
Q3 2020 Earnings Summary November 9, 2020 Extended Stay America, Inc. ESH Hospitality, Inc.
Slide 2: Important Disclosure Information
important disclosure information This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to, statements related to our expectations regarding our business performance, business strategies, financial result
Slide 3: Q3 2020 Operating Results and Financial Highlights
Q3 2020 Operating Results and Financial Highlights comparable system-wide revenue per available net income (in millions) room (“RevPAR”) $54.78 $53.2 $46.75 $31.5 Q3 2019 Q3 2020 Q3 2019 Q3 2020 1 hotel operating margin1 adjusted FFO per diluted Paired Share 53.8% 47.3% $0.54 $0.40 Q3 2019 Q3 2020 Q
Slide 4: Significantly outperforming industry, segment and competitive set
Significantly outperforming industry, segment and competitive set 1,2 3 • STAY’s 2020 RevPAR and occupancy compared to 2019 have held up significantly better than the industry and other mid-priced extended stay hotels since the pandemic began in the United States in March 20201,2 • STAY’s RevPAR Ind
Slide 5: Well positioned in a challenging environment
Well positioned in a challenging environment ✓ System-wide occupancy running close to FY 2019 levels in recent months ✓ Majority of STAY’s guests are driving to hotels; ~75% of locations are suburban ✓ STAY’s guests average length of stay is ~30 nights vs ~2 nights for overall industry ✓ RevPAR leve
Slide 6: Strong free cash flow, despite capital investments into new hotels and renovations
Strong free cash flow, despite capital investments into new hotels and renovations 1 1 maturity amount/ interest debt capitalization date millions2 rate Term Loan B 2026 $625 L + 2003 ESH REIT revolver 2024 $0 L + 200 ($350m) ESA revolver ($50m) 2024 $50 L + 225 total secured debt $675 senior unsecu
Slide 7: Pipeline Update
Pipeline Update Company Owned Pipeline & Recently Opened Hotels as of September 30, 2020 Under Option Pre-Development Under Construction Total Pipeline Opened YTD # Hotels # Rooms # Hotels # Rooms # Hotels # Rooms # Hotels # Rooms # Hotels # Rooms 0 0 4 504 6 764 10 1,268 5 612 Third Party Pipeline
Slide 8: Outlook Update
Outlook Update1 Q4 2020 Comparable system-wide RevPAR % D: -11% to -15% Company owned RevPAR % D: -12% to -16% Adjusted EBITDA: $78 to $88 million FY 2020 Comparable system-wide RevPAR % D: -15.5% to -16.5% Company owned RevPAR % D: -16.5% to -17.5% Net Income: $31 to $45 million Adjusted EBITDA: $3
Slide 9: Appendix
appendix
Slide 10: RevPAR Index
REVPAR INDEX RevPAR Index is stated as a percentage and calculated by comparing RevPAR for comparable system-wide hotels to the aggregate RevPAR of a group of competing hotels generally in the same geographic market. As such, the RevPAR Index is only a measure of RevPAR relative to certain competing
Slide 11: Non-GAAP Reconciliation of Net Income to Hotel Operating Profit and Margin
NON-GAAP RECONCILIATION OF NET INCOME TO HOTEL OPERATING PROFIT AND HOTEL OPERATING MARGIN FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 Variance 2020 2019 Variance $ 31,492 $ 53,2
Slide 12: Non-GAAP Reconciliation of Net Income to EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 $ 31,492 $ 53,230 Net income $ 30,567 $ 141,292 32,276 3
Slide 13: Non-GAAP Reconciliation to Funds From Operations and Adjusted FFO
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 NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (In thousands, ex
Slide 14: Non-GAAP Reconciliation to Paired Share Income and Adjusted Paired Share Income
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 NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (In thousands, except p
Slide 15: Non-GAAP Reconciliation of Net Income to EBITDA: 2019 Actual and 2020 Outlook
NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA FOR THE YEARS ENDED DECEMBER 31, 2019 (ACTUAL) AND 2020 (OUTLOOK) (In thousands) (Unaudited) Year Ended Year Ended December 31, 2020 December 31, 2019 (Outlook) (Actual) Low High $ 165,138 Net income $ 30,605 $ 44,605 127,764 Intere
Extended Stay America — Q3 2020 Earnings Presentation on 6ix