Skift Take
Longer-term stays may buoy Extended Stay America through the pandemic, but the company aims to build up its business traveler base to garner greater profits post-pandemic.
The extended stay hotel sector continues to defy hotel industry expectations and performance trends during the travel industry’s worst year on record.
Extended Stay America reported a $31.5 million third quarter profit this week. The company — which attracted investments from Blackstone Group and Starwood Capital earlier this year due to its performance resilience during the pandemic — chalked up the financial strength relative to its competitors to its low-cost model and narrow focus.
But profitability isn’t enough. Extended Stay America plans to build up its appeal to business travelers to strengthen profit margins once the health crisis has passed.
"There are many different tiers to the extended stay market," said Extended Stay America CEO Bruce Haase during a Tuesday investor call. "Our brand resonates with core customers and resonates w
