CHARLOTTE, NC—Extended Stay America, Inc., based on its heady returns on its renovated properties, says it plans to speed up its renovation schedule and will now upgrade an additional 85 hotels in 2015.
The hotelier reported today that third quarter revenue increased 7.9% to $338.6 million and net income increased $13.6 million to $60.2 million.
For the nine months ended Sept. 30, 2014, the company's revenue increased 7.7% to $930.8 million and net income rose $24.5 million or 25% to $122.6 million.
Extended Stay America's CEO Jim Donald says that the company's third quarter RevPAR grew approximately 8% and notes that over a two-year period its RevPAR has increased almost 18%.
“We continued to make significant progress on our strategic initiatives in the quarter and these initiatives have been most effective in our platinum renovated properties which produced nearly 11% RevPAR growth in the quarter,” Donald says. “In light of the continued strength of our renovated properties, we now plan to accelerate our remaining renovation schedule which will include 85 additional hotels being renovated in 2015 and a complete renovation of our Extended Stay America branded hotels by mid-2017.”
He continues, “We believe these renovations, in concert with our strategic initiatives to enhance our operations, drive brand awareness and optimize revenue yield will generate significant growth and drive attractive shareholder returns in the coming years.”
The company updated its 2014 outlook and now expects its total revenues to increase 6.8% to 7.3% to approximately $1.210 billion to $1.216 billion and net income to be in the range of approximately $145.5 million to $154.9 million.
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