Extended Stay America, Inc. Announces Relocation Of Corporate Headquarters

Extended Stay America, Inc. (NYSE:ESA), a leading provider of extended-stay lodging, today announced that it will immediately begin relocating its corporate headquarters from Fort Lauderdale, Florida to Spartanburg, South Carolina. The move is expected to be completed in phases over the next six months. The Company expects to occupy temporary office facilities in Spartanburg while it designs and constructs a new office building in Spartanburg to accommodate its growing operations.

The Company`s decision to relocate its headquarters at this time was made after a review of the Company`s current and anticipated long-term needs for office facilities. The lease of a substantial portion of its current offices in Fort Lauderdale expires at the end of 2001 and the Company believes that it can reduce its long-term occupancy costs while at the same time increasing operational efficiencies by moving to a building designed for its use in Spartanburg.

In making the announcement, George D. Johnson, Jr., Chief Executive Officer, stated, “Our Company has had a very positive and prosperous experience in South Florida and we are most grateful to the employees here who have contributed so much to our success. We hope that many of them will continue their careers with us in South Carolina. Since our Company was founded in Spartanburg, we are familiar with the quality of the workforce and look forward to building a strong team led by our current employees.”
The Company currently employs over 6,400 persons, including approximately 200 employees in its Fort Lauderdale headquarters. All corporate employees will be invited to make the move to South Carolina. Most employees deciding to make the move will receive relocation assistance. Those who decide to remain in South Florida will be given severance packages based on their positions within the Company. The Company will also provide those employees who decide not to move with career continuation assistance. The Company has not yet determined how many of its headquarters` employees will relocate to the Spartanburg offices.