Extended Stay America Welcomes Seven New Properties

Rhea-AI Summary

Extended Stay America (NASDAQ:STAY) has announced the conversion of seven properties into its brand, owned by Three Wall Capital and managed by Aimbridge Hospitality. The new locations include hotels in Virginia, Georgia, and Illinois, enhancing the portfolio of the largest mid-priced extended-stay hotel brand in the U.S. These hotels will offer complimentary amenities and fully equipped kitchens. Chief Investment Officer Judi Bikulege emphasized this strategy for growth through franchise conversions, building on a previous successful partnership with TWC during the COVID-19 pandemic.

Positive

• Addition of seven properties expands Extended Stay America's portfolio.
• Properties well-positioned near retail and transportation hubs.
• Partnership with experienced Aimbridge Hospitality for management.

Negative

• None.

CHARLOTTE, N.C., Nov. 20, 2020 (GLOBE NEWSWIRE) -- Extended Stay America, Inc. (NASDAQ:STAY), the largest mid-priced extended-stay hotel brand, announced today the addition of seven properties through franchise conversions. The properties are all owned by New York-based Three Wall Capital (TWC) and will be operated by Dallas, Texas-based Aimbridge Hospitality, the nation’s largest management company.

The properties include:

• Extended Stay America Virginia Beach, Virginia Beach, Virginia
• Extended Stay America Newport News – Yorktown, Newport News, Virginia
• Extended Stay America Richmond – Glen Allen – Short Pump, Glen Allen, Virginia
• Extended Stay America Chantilly – Dulles, Chantilly Virginia
• Extended Stay America Atlanta – Norcross, Norcross, Georgia
• Extended Stay America Atlanta – Northlake, Northlake, Georgia
• Extended Stay America Chicago – Elgin - West Dundee, West Dundee, Illinois.

All of the hotels are well-positioned in their markets and within close proximity to retail, office, hospital, airports, and major highways. They will all feature complimentary Wi-Fi, premium cable, a STAYFIT fitness room, and a STAYCLEAN laundry room. The rooms include fully equipped kitchens with full-size refrigerators, stovetop, cookware, utensils, and dishes, as well as pillowtop beds, recliners, spacious workspace, and television streaming capabilities.

“We are extremely excited to be announcing the addition of seven conversions into the ESA brand,” said Judi Bikulege, Chief Investment Officer, Extended Stay America. “These new ESA locations continue our strategy of growing the ESA portfolio through franchising and the opportunity to do so through conversions of existing hotels as well as new construction. We look forward to continuing to work with Three Wall Capital and Aimbridge, as well as all of our current and prospective owners to continue growing our brand throughout the United States.”

TWC was the first Extended Stay America franchisee through the acquisition of 25 existing ESA hotels across the Midwest and Texas. “We viewed this acquisition not only as an opportunity to acquire strategically located assets and grow our extended-stay portfolio, but we were also thrilled to be able to work with ESA and build upon our strong existing relationship,” remarked Alan Kanders, Managing Member and Founder Three Wall Capital. “The strength of the ESA brand and the support of the ESA and Aimbridge teams helped us complete this transaction in the midst of the COVID-19 pandemic.”

TWC engaged Aimbridge Hospitality as the third-party manager of the portfolio, who is an experienced operator in the extended-stay space and currently operates 21 extended stay hotels for TWC. “Our extended stay team is excited to manage this exceptional collection of properties, and to continue to grow our partnership with Three Wall Capital and Extended Stay America,” said Mike Deitemeyer, Global President of Aimbridge Hospitality. “Our deep understanding of extended stay properties, along with our vertical specialists who understand the nuance of operating this category, is a tremendous advantage to owners and in driving each property’s market success.”

About Extended Stay America^®
Extended Stay America, Inc. and its brand Extended Stay America^® is the leading brand in the mid-priced extended-stay segment in the U.S. with 646 hotels. Extended Stay America’s subsidiary, ESH Hospitality, Inc. (“ESH”), is the largest lodging REIT in North America by unit and room count, with 563 hotels and more than 62,000 rooms in the U.S. Extended Stay America also manages or franchises an additional 84 Extended Stay America^® hotels.

For franchise inquiries, visit www.newesa.com for more information
For investor or media inquiries, contact Rob Ballew at ir@esa.com or 980-345-1546

About Aimbridge Hospitality
Aimbridge Hospitality is the leading, global third-party hotel management company operating branded full service, select service, luxury hotels, destination resorts, convention centers, and lifestyle hotels. Aimbridge merged with Interstate Hotels & Resorts in 2019 and now represents a premium portfolio of over 1,500 branded and independent properties in 49 states and 20 countries, inclusive of pipeline. Aimbridge is based in Plano, Texas and has additional corporate offices in Atlanta, Calgary, Fargo, Puerto Rico, San Clemente, Toronto, and Washington D.C. Aimbridge’s International Division, Interstate Hotels & Resorts, has supporting offices spread across Europe in Amsterdam, Birmingham, Glasgow, and Moscow.
For more information on Aimbridge Hospitality, please visit and connect with Aimbridge on LinkedIn.

About Three Wall Capital
Founded in 2008 by Alan Kanders, Three Wall Capital has completed over $1.0 billion in transactions in a principal investor capacity since inception. TWC invests with the philosophy that hotel real estate is subject to both short and long term cycles, and therefore, opportunistically invests in product type ranging from limited service to luxury hotels. TWC’s current investment strategy is to acquire and develop mid- scale extended stay hotels in markets with strong growth outlooks in terms of population, disposable income, jobs, diversity of high-quality food and beverage experiences, retail offerings, and office space. Three Wall Capital’s portfolio consists of 61 hotels across 12 states.
For further information and more details on TWC’s portfolio, visit www.threewallcapital.com

FAQ

What recent developments have occurred for Extended Stay America (STAY) as of November 2020?

Extended Stay America announced the addition of seven properties through franchise conversions, enhancing its portfolio.

Where are the new Extended Stay America properties located?

The new Extended Stay America properties are located in Virginia, Georgia, and Illinois.

Who is managing the newly converted Extended Stay America hotels?

The hotels will be managed by Aimbridge Hospitality.

What strategy is Extended Stay America employing for growth?

Extended Stay America is focusing on growth through franchise conversions and partnerships.

Who owns the new Extended Stay America properties?

The properties are owned by New York-based Three Wall Capital.