CHARLOTTE, N.C., Jan. 28, 2021 (GLOBE NEWSWIRE) -- Extended Stay America, Inc. and ESH Hospitality, Inc. (NASDAQ:STAY) (together, the “Company”), today announced the tax treatment for the aggregate distributions of $0.26 per paired share (CUSIP: 30224P200) paid to Extended Stay America, Inc.’s common shareholders and ESH Hospitality, Inc.’s Class A and Class B common shareholders during the calendar year ended December 31, 2020.
For the tax year ended December 31, 2020, ESH Hospitality, Inc.’s aggregate distributions of $0.16 per Class A and Class B common shares were classified as 100% Ordinary Income and 100% Section 199A Qualified Business Income. For the tax year ended December 31, 2020, Extended Stay America Inc.’s aggregate distributions of $0.10 per common share were classified as 100% Qualified Dividend.
Shareholders are encouraged to consult with their tax advisors as to the specific tax treatment of ESH Hospitality, Inc.’s and Extended Stay America, Inc.’s distributions.
| Dividend | Ordinary Income/ | Capital Gain | Qualified | ||||||||||||||
| per Share | Section 199A Income | Income | Dividend | Total | |||||||||||||
| ESH Hospitality, Inc. | $ | 0.16 | 100.00 | % | 0.00 | % | 0.00% | 100.00 | % | ||||||||
| Extended Stay America, Inc. | $ | 0.10 | 0.00 | % | 0.00 | % | 100.00% | 100.00 | % | ||||||||
| $ | 0.26 | ||||||||||||||||
| ESH | Extended Stay | Ordinary Income/ | Qualified | ||||||||||||||
| Amount Per Dividend Date | Hospitality, Inc. | America, Inc. | Total | Section 199A Income | Dividend | Total | |||||||||||
| March 26, 2020 | $ | 0.14 | $ | 0.09 | $ | 0.23 | 60.87% | 39.13 | % | 100.00 | % | ||||||
| June 4, 2020 | $ | 0.01 | $ | 0.00 | $ | 0.01 | 100.00% | 0.00 | % | 100.00 | % | ||||||
| September 8, 2020 | $ | 0.01 | $ | 0.00 | $ | 0.01 | 100.00% | 0.00 | % | 100.00 | % | ||||||
| December 8, 2020 | $ | 0.00 | $ | 0.01 | $ | 0.01 | 0.00% | 100.00 | % | 100.00 | % | ||||||
| Total | $ | 0.16 | $ | 0.10 | $ | 0.26 | |||||||||||
Forward Looking Statements
This release may contain forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, payment of distributions, future financial performance and flexibility and distribution growth, as such, may involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results or performance to differ from those projected in the forward-looking statements, possibly materially. For a description of factors that may cause the Company’s actual results or performance to differ from any forward-looking statements, please review the information under the headings “Cautionary Note Regarding Forward-looking Statements” and “Risk Factors” included in the Company’s combined annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 26, 2020 and other documents of the Company on file with or furnished to the SEC, including the Company’s combined quarterly report on Form 10-Q filed on November 9, 2020. Any forward-looking statements made in this release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, will have the expected consequences to, or effects on, the Company, its business or operations. Except as required by law, the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. We caution you that actual outcomes and results may differ materially from what is expressed, implied or forecasted by the Company’s forward-looking statements.
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 62,700 rooms in the U.S. Extended Stay America also franchises an additional 83 Extended Stay America® hotels. Visit www.esa.com for more information.
Contacts
Investors and Media:
Rob Ballew
(980) 345-1546
ir@esa.com