Extended Stay America, Inc. (NYSE:ESA), a leading provider of extended stay lodging, today reported the results of its operations for the three months and twelve months ended December 31, 2000. Net income for the fourth quarter increased by 56% to $14.8 million or $0.15 per diluted share, compared with $9.5 million or $0.10 per diluted share for the fourth quarter last year. Net income for the year ended December 31, 2000 was $70.0 million or $0.72 per diluted share, an increase of 47% compared to 1999.
Revenue increased by 22% to $128.7 million as compared to $105.3 million for the fourth quarter last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) of $61.9 million, or $0.63 per diluted share, for the quarter increased by 31% as compared to the fourth quarter of last year. For the year, EBITDA was $259.1 million, or $2.68 per diluted share, an increase of 33% compared to 1999 (excluding a non-recurring reduction in a valuation allowance in 1999).
The results for the fourth quarter reflect the opening of 9 properties during the quarter (8 EXTENDED STAYAMERICA Efficiency Studios and 1 StudioPLUS Deluxe Studios). At December 31, 2000, the Company had 392 operating facilities (39 Crossland Economy Studios, 260 EXTENDED STAYAMERICA Efficiency Studios, and 93 StudioPLUS Studios) and had 19 facilities under construction (18 EXTENDED STAYAMERICA Efficiency Studios and 1 StudioPLUS Deluxe Studios). A total of 30 properties were opened during the year ended December 31, 2000 with total costs of approximately $256 million.
The Company realized average occupancies of 76% and average weekly room rates of $307 for the quarter. Average occupancy rates for Crossland, EXTENDED STAYAMERICA, and StudioPLUS were 80%, 76%, and 72%, respectively, while average weekly rates were $215, $317, and $338, respectively for the quarter. The 356 properties opened for at least one year at the beginning of the fourth quarter realized average occupancy rates of 77% and average weekly rates of $299 during the quarter.
Facility level EBITDA for the fourth quarter was 57% of revenue or $73.2 million, compared to 55% of revenue or $58.1 million for the fourth quarter of 1999. Facility level EBITDA was 59% of revenue or $303.5 million for the twelve months ended December 31, 2000, compared to 57% of revenue or $237.2 million for 1999. Facility level EBITDA does not include corporate operating and site selection expenses of $11.4 million for the fourth quarter and $44.4 million for the year, which decreased as a percentage of revenue from 10% to 9% for the fourth quarter and for the year.
As of December 31, 2000, the Company had invested approximately $2.1 billion in the 392 open properties and had invested approximately $118 million in sites under development. The Company had cash balances of approximately $13.4 million. As of December 31, 2000, the Company had outstanding loans of $952 million, (including $200 million of senior subordinated notes), leaving $246 million available under its $1.2 billion total credit facilities.
George Dean Johnson, Jr., CEO, Extended Stay America, commented: “We are pleased to report that our property level operating margins of 59% for the year exceeded the objectives we established five years ago when we embarked on our plan to rapidly develop a national brand of extended stay lodging properties. We are also delighted that we have been able to leverage our corporate overhead over the last five years to realize a remarkable EBITDA margin of 50% for the year. These results reflect the strength of our brands and the faithful execution of our concept by our 6,000 employees. We are excited about the prospects for our business based on increasing awareness of our brands, the loyalty demonstrated by our guests, and the declining rate of growth in supply of additional rooms in the lodging industry. We will continue to work diligently to leverage these factors to increase our market share and profitability.”
Certain statements and information included in this release constitute “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements. Additional discussion of factors that could cause actual results to differ materially from management`s projections, forecasts, estimates and expectations is contained in the Company`s SEC filings.