Skift Take
We're fairly certain Extended Stay America — just like nearly every other public hotel company in existence — will likely pursue a spin-off.
At a time when the majority of major hospitality brands pursue being completely "asset-light" companies that own little to no real estate of their own, one holdout is considering joining the rest of the pack.
Charlotte, North Carolina-based Extended Stay America is that company, following the lead of such companies as Hilton and, most recently, Wyndham.
During a conference call with investors to discuss second quarter earnings Thursday, Extended Stay America CEO Jonathan Halyard said, "I want our shareholders to know that we continue to evaluate the merits of alternatives to our current corporate structure."
Those alternatives include possible merger and acquisition activity and, more likely, the spinoff of Extended Stay America's real estate investment trust, ESH Hospitality, which owns 599 of Extended Stay America's 626 economy extended stay properties in the U.S.
Halkyard said the Extended Stay America board was considering the possibility of a spinoff, primarily because of interest both from shareholders and the analyst community.
No definitive timeline was given for if or when a spinoff might be announced. Halkyard said, "I am reluctant to put any kind of timeline on this. I only want to
