Extended Stay America reports Q1 adjusted paired share income 11c Q1 EPS consensus 12c. Reports Q1 revenue $270.3M, consensus $267.88M. Reports Q1 RevPar $38.79M. Reports Impact of renovations and weather-related costs in Q1 resulted in Hotel Operating Margin1 decrease of approximately 180 basis points to 48.2%.
Extended Stay America CEO Donald to depart, Lopez appointed CEO The boards of directors of Extended Stay America (STAY) and its paired-share REIT ESH Hospitality announced that they have appointed Gerardo Lopez to serve as the next president and CEO of both companies, effective August 24. Concurrently with the appointment of Lopez, the company’s current president and CEO, Jim Donald, will transition to the role of senior advisor through December 31. Lopez most recently has been the president and CEO of AMC Entertainment (AMC) since 2009.
Extended Stay America downgraded to Underperform from Buy at BofA/Merrill BofA/Merrill downgraded Extended Stay America two notches to Underperform from Buy and lowered its price target to $20 from $23. The firm's analyst said the company faces difficult Q2/Q3 comps with industry RevPAR decelerating and has low visibility.