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Extended Stay (STAY) Adds 7 Properties to U.S. Portfolio
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Extended Stay America, Inc. recently announced the addition of seven new properties through franchise conversions to expand its portfolio in the United States. The properties are owned by Extended Stay’s franchise -- Three Wall Capital -- and will be operated by Texas-based Aimbridge Hospitality.
The list of the properties include Extended Stay America Virginia Beach, Extended Stay America Newport News, Extended Stay America Richmond, Extended Stay America Chantilly and Extended Stay America Chicago located in Virginia Beach, Newport News, Richmond-Glen Allen, and Chantilly-Dulles in Virginia; and in Elgin-West Dundee in Illinois. Also, the company added Extended Stay America Atlanta in the Norcross and Northlake in Georgia region.
Notably, the hotels are in close proximity to retail, office, hospital, airports and major highways.
In this regard, Judi Bikulege, Chief Investment Officer, Extended Stay, stated, “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.”
Meanwhile, during the third quarter of 2020, the company opened a new hotel in Tampa. The company anticipates further unit growth after the construction of its pipeline. It also expects several franchise conversions during the fourth quarter of 2020. As of Sep 30, the company had a pipeline of 65 hotels.
Price Performance
Coming to price performance, shares of the company have declined 11.1% so far this year, compared with the industry’s fall of 9.9%. The dismal performance can be primarily attributed to the coronavirus pandemic. This along with related travel restrictions and other containment efforts affected the company. Also, the company’s RevPAR declined significantly due to the same.
Nevertheless, the company is likely to benefit from numerous strategic efforts in order to revive growth. It is also refocusing on core customers. Additionally, its initiatives toward controlling costs and reducing capital requirement for fresh hotel builds are commendable. Meanwhile, earning estimates for 2020 have moved up over the past 30 days, depicting analysts’ optimism over the stock’s growth potential.
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Extended Stay (STAY) Adds 7 Properties to U.S. Portfolio
Extended Stay America, Inc. recently announced the addition of seven new properties through franchise conversions to expand its portfolio in the United States. The properties are owned by Extended Stay’s franchise -- Three Wall Capital -- and will be operated by Texas-based Aimbridge Hospitality.
The list of the properties include Extended Stay America Virginia Beach, Extended Stay America Newport News, Extended Stay America Richmond, Extended Stay America Chantilly and Extended Stay America Chicago located in Virginia Beach, Newport News, Richmond-Glen Allen, and Chantilly-Dulles in Virginia; and in Elgin-West Dundee in Illinois. Also, the company added Extended Stay America Atlanta in the Norcross and Northlake in Georgia region.
Notably, the hotels are in close proximity to retail, office, hospital, airports and major highways.
In this regard, Judi Bikulege, Chief Investment Officer, Extended Stay, stated, “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.”
Meanwhile, during the third quarter of 2020, the company opened a new hotel in Tampa. The company anticipates further unit growth after the construction of its pipeline. It also expects several franchise conversions during the fourth quarter of 2020. As of Sep 30, the company had a pipeline of 65 hotels.
Price Performance
Coming to price performance, shares of the company have declined 11.1% so far this year, compared with the industry’s fall of 9.9%. The dismal performance can be primarily attributed to the coronavirus pandemic. This along with related travel restrictions and other containment efforts affected the company. Also, the company’s RevPAR declined significantly due to the same.
Nevertheless, the company is likely to benefit from numerous strategic efforts in order to revive growth. It is also refocusing on core customers. Additionally, its initiatives toward controlling costs and reducing capital requirement for fresh hotel builds are commendable. Meanwhile, earning estimates for 2020 have moved up over the past 30 days, depicting analysts’ optimism over the stock’s growth potential.
Extended Stay — which shares space with Hilton Worldwide Holdings Inc. (HLT - Free Report) , Choice Hotels International, Inc. (CHH - Free Report) and Marriott Vacations Worldwide Corporation (VAC - Free Report) in the Zacks Hotels and Motels industry — has a Zacks Rank #3 (Hold), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>