Extended Stay America released the results of its performance for the first quarter ended March 31, 2014.
“Our first quarter was consistent with our expectations while completing our recent hotel renovation phase and getting through the impact of severe weather during the quarter," said Jim Donald, CEO of Extended Stay America. "Furthermore, we are experiencing improved revenue growth as we begin the second quarter of 2014 as expected. We also continue to make progress on other strategic initiatives, including our initial development work on a new revenue management system for implementation later this year. We believe that our strong operating metrics coupled with the benefit of our refreshed portfolio, along with our planned service and revenue enhancements, will drive value for both our customers and our shareholders in 2014 and beyond.”
For the rest of 2014, the company expects revenues to increase 7 to 10 percent to approximately $1,212 million, or $1,246 million. The company also expects depreciation and amortization of approximately $165 to $170 million, and an interest expense of approximately $148 million, excluding the impact of additional debt reduction or refinancing. Effective tax rate is expected to range from 23 percent to 24 percent, and capital expenditures are expected to be in the range of $150 to $170 million for capital renovations, regular maintenance and information technology projects.
Extended Stay America's 2014 Adjusted EBITDA is expected to range between $570 to $600 million, representing approximately 10 percent to 16 percent growth over 2013 Adjusted EBITDA. Net income is now anticipated to range from approximately $174 to $205 million, updated to include an estimated non-cash foreign currency transaction loss of approximately $2.5 million.