Extended Stay America (NASDAQ: STAY) reported Q2 EPS of $0.58, $0.24 better than the analyst estimate of $0.34. Revenue for the quarter came in at $336.5 million versus the consensus estimate of $336.59 million.

Second Quarter 2018 Highlights

• Total revenues of $336.5 million
• Comparable system-wide Revenue Per Available Room (“RevPAR”) grew 1.6% to $53.91
• Adjusted EBITDA of $167.3 million
• Adjusted Funds From Operations (“Adjusted FFO”)1 of $0.58 per diluted Paired Share, an increase of 10.0%
• Adjusted Paired Share Income1 of $0.35 per diluted Paired Share, an increase of 11.7%

First Half 2018 Highlights

• Total revenues of $634.3 million
• Comparable system-wide RevPAR grew 2.6% to $50.72
• Adjusted EBITDA of $299.5 million
• Adjusted FFO of $1.00 per diluted Paired Share, an increase of 13.4%
• Adjusted Paired Share Income of $0.54 per diluted Paired Share, an increase of 18.8%

Extended Stay America’s President and Chief Executive Officer, Jonathan Halkyard, commented, “The second quarter marked another quarter of progress on our growth strategy. In the last few months, we grew our total pipeline to 34 hotels, including 19 franchise hotels, we purchased a hotel for conversion, purchased an additional site for a new hotel and we expect to purchase several more sites in the second half of 2018.”

Mr. Halkyard continued, “Our operating model, combined with strong capital returns, allowed us to grow Adjusted FFO and Adjusted Paired Share Income per Paired Share by double digit increases for the second quarter in a row.”

GUIDANCE:

Extended Stay America sees FY2018 EPS of $1.07-$1.15, versus the consensus of $1.14. Extended Stay America sees FY2018 revenue of $1.257-1.279 million, versus the consensus of $1.28 million.

For earnings history and earnings-related data on Extended Stay America (STAY) click here.