Extended Stay America has plans to sell 45 hotels by the end of the year.
The plan is part of the firm’s efforts to sell 150 hotels that are considered underperforming in its portfolio. In February, Extended Stay America sold 25 properties with 2,400 rooms to Three Wall Capital. The hotels were located in Ohio, Kentucky, Indiana and Texas.
“We delivered a strong performance during the first quarter, despite a negative impact from the Easter holiday shift, allowing us to grow adjusted EBITDA and RevPAR for the quarter,” said Jonathan Halkyard, Extended Stay America’s president and CEO. “Year to date, we have made significant progress on our growth strategy, ‘ESA 2.0’, having sold 26 hotels at attractive multiples, received commitments for 15 new ESA hotels, are in active negotiations to sell up to another 45 hotels and acquired sites for our own development.”
As of Feb, 27, 2018, the firm had 599 hotels and approximately 66,000 rooms, and also managed 26 hotels under the Extended Stay America brand.
