Extended Stay America

Investor Presentation

June 10, 2020

This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to,

statements related to our expectations regarding our business performance, business strategies, financial results, liquidity and capital resources, capital

expenditures, capital returns, distribution policy, plans, goals, beliefs, business trends and future events, as well as the COVID-19 pandemic, its effects on the

foregoing, government action taken in response to the pandemic and action that we have or plan to take in response to the pandemic and other non-historical

statements, including statements relating to industry RevPAR trends. Forward looking statements involve known and unknown risks, uncertainties and other factors

that may cause Extended Stay America, Inc.’s (“ESA”) and ESH Hospitality, Inc.’s (“ESH REIT,” and together with ESA, the “Company”) 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 projected results or performance implied by 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 our

combined quarterly report on Form 10-Q to be filed with the SEC on May 6, 2020. Any forward-looking statements made in this presentation 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 results may differ materially from what is expressed, implied or forecasted by the Company’s forward-looking statements.

This presentation includes certain non-GAAP financial measures, including Hotel Operating Profit, Hotel Operating Margin, EBITDA, Adjusted EBITDA, Funds from

Operations (“FFO”), Adjusted Funds From Operations (“Adjusted FFO”), Adjusted FFO per diluted Paired Share, Paired Share Income, Adjusted Paired Share

Income and Adjusted Paired Share Income per diluted Paired Share. These non-GAAP financial measures should be considered only as supplemental to, and not

as superior to, financial measures prepared in accordance with U.S. GAAP. Please refer to the Appendix of this presentation for a reconciliation of these non-GAAP

financial measures to the most directly comparable financial measures prepared in accordance with U.S. GAAP, and to the Company’s combined annual report on

Form 10-K filed with the SEC on February 26, 2020 for definitions of these non-GAAP measures.

This presentation includes certain operating metrics presented on a comparable system-wide basis. The term “Comparable system-wide” refers to hotels operated

under the Extended Stay America brand, including those owned, franchised or managed by the Company, for the full three months ended March 31, 2020 and

2019. For franchised or managed hotels, ESA earns certain fees based on a percentage of hotel revenues. The Company’s presentation of the Non-GAAP

Financial Measures does not replace the presentation of the Company’s consolidated financial results prepared in accordance with U.S. GAAP.

INDUSTRY INFORMATION

The information in this presentation regarding the lodging industry and the extended stay segment of the lodging industry, including trends and our position and the

position of our competitors, is based on a variety of outside sources and our good faith estimates, which have been derived from management’s knowledge and

experience in the areas in which our business operates. We have not verified the accuracy or completeness of the information or any assumptions underlying the

information. While such information is believed to be reliable for the purposes used herein, no representations are made as to the accuracy or completeness

thereof and we take no responsibility for such information. We caution you not to place undue weight on the industry and market information included in this

presentation.

Unless otherwise indicated or the context requires, the term “industry” refers to the lodging industry and the terms “segment” or “market” refer to the extended stay

segment of the lodging industry.

disclosure

WHO WE

ARE

Extended Stay America overview

Extended Stay America hotel features

free in-room wi-fi

free grab-and-go breakfast

fully equipped kitchens

on-site laundry facilities

pet-friendly rooms available

our guests typically stay a week or longer

634 hotels nationwide

short term(1-6 nts)

long term (30 or more

nts)

medium term (7-29 nts)

why customers choose ESAExtended Stay America’s customers are typically working on projects or are in transition:

corporate clients, small business travelers and those on personal stays

businesspersonalprice/value

locationkitchen

other

primary reason why people choose ESA our customers

revenue mix by length of stay1

gender 52% male, 48% female

HHI ~$75,000

kitchen84% of guests use the kitchen during their

stay

ESA demographics

1 For the twelve months ended December 31, 2019

our national scale and great locations

70,000

38,332

9,737

4,636

2,745

Hawthorn Suites

MainStay Suites

Other, approximately various

1 Mid-Priced extended stay hotels defined as a hotel brand with a $55 to $105 Average Daily Rate

with a kitchen in the guest room; # of rooms as of latest SEC filings for each corporation as of

12/31/2018 or 9/30/2019. Other estimated based on The Highland Group Q4 2018 report. North

American room count only.

Brand Parent

41,117

Candlewood Suites

TownePlace Suites

national scale and great locations

our guests’ self sufficiency and long stays

TTM rev mix1 Avg. nightly rate1 Operating

margin 1,2

1-4 nights 32% $75 48%

5-29 nights 26% $73 55%

30+ nights 42% $59 52%Extended

Stay America3

52%

34%overall

industry4

hotel operating margin

Long Length of Stay

Limited Service

+ = HighMargins

1 Based on 2019 results for ESA2 Allocates fixed expenses evenly to all occupied rooms. See

Appendix for Hotel Operating Margin reconciliation.3 Source: 2019 results for ESA4 Source: STR 2019 HOST Study; industry margins adjusted to

exclude franchise and management fees

COVID-19

Pandemic

Update%$

Improving trends with strong outperformance versus

industry and chainscales.….

1 Total industry RevPAR numbers per STR, Inc. (“STR”), a CoStar Group Company. Neither STR nor Highland endorse the Company, nor any other

Company, and the data provided by each such company should not be viewed as investment advice or as a recommendation to take a particular course of

action.

….as well as compared to other mid-priced extended

stay hotels & competitive set

1Mid-priced extended stay RevPAR per The Highland Group, Inc. (“Highland”). May data not yet available for mid-priced extended stay. Neither STR nor

Highland endorse the Company, nor any other Company, and the data provided by each such company should not be viewed as investment advice or as a

recommendation to take a particular course of action.

See Appendix for RevPAR Index definition and disclosure.

Significant RevPAR index gains made since COVID-19 have continued into June

Significant RevPAR outperformance vs other mid-priced extended stay hotels year to date, highlighting the strong STAY model versus the larger transient brand families

Profile well positioned in COVID-19 environment

Majority of STAY’s guests are driving to hotels; ~75% of locations are suburban

Extended stay guests have proven more resilient – STAY’s guests average length of stay is ~30 nights vs ~2 nights for overall industry

Focus on long term construction projects, medical workers and residential-like business

Full kitchen and refrigerator in room assist guests worried about COVID-19 exposure while traveling or with limited dining out options

Very limited urban, group and in-bound international exposure

Occupancy rebounding since early April – over 75% for the w/e 6/6/20

More hotels with 90% or higher occupancy than below 60% occupancy system-wide1

No hotels were closed due to COVID-19

Low break-even occupancy

Hotels are in midscale and economy chainscale, which has significantly outperformed the broader lodging industry

1 as of June 10, 2020

Actions taken in response to COVID-19

• Provided additional cleaning in our hotels, with a focus on high touch areas.

• Purchased and supplied PPE for our associates for their safety.

• Reduced interactions between our guests and our associates including temporarily

suspending our grab n’ go breakfast and switching to every other week housekeeping

from weekly housekeeping.

• Launched STAY Confident program to focus on health, safety and comfort for guests

• Increased effort and focus to attract guests staying for a month or longer at a time, which

has proven significantly more resilient to date than the broader lodging industry.

• Reduced payroll hours due to lower occupancy and longer length of stay guests at a

number of our properties.

• Total capital expenditure reduction of approximately $50 million for 2020, including a

reduction in non-guest facing capital expenditure, as well as renovations and new hotel

construction capital expenditures.

• Drew full $400 million in revolver capacity. $725 million in cash on hand at end of Q1.

• Utilizing the CARES act to reduce our 2020 tax liability and other measures.

• Suspended Paired Share repurchases and have reduced quarterly distribution.

Strong balance sheet

1As of 3/31/20202$150m swapped to fixed LIBOR of 1.175% as of 3/31/203Mandatorily redeemable in November 2020.

debt capitalization1 maturitydate

amount/millions

interestrate

Term Loan B 2026 $628 L + 2002

ESH REIT revolver ($350m) 2024 $350 L + 200

ESA revolver ($50m) 2024 $50 L + 225

total secured debt $1,028

senior unsecured notes 2025 $1,300 5.25%

senior unsecured notes 2027 $750 4.625%

preferred stock3 2020 $7 8.00%

total unsecured debt $2,057

total company debt $3,085

» long dated maturities – weighted average maturity of 5.9 years1

» Over 70% of STAY debt is fixed

» low cost of debt – weighted average cost of debt 4.4%1

» mix of covenant light term loan B and unsecured notes; ESA revolver covenant waived through Q2 2021

» Over $700 million in cash on balance sheet1

CorporateSenior

Secured

Senior

UnsecuredOutlook

S&P BB- BB+ BB- Negative

Moody's Ba3 Ba2 Ba3 Negative

Current Credit Ratings

Four Pillars

Of Value

Creation

Pillar I: Improve Property Operations

» re-dedicating the Company to execution and to the basics of our high margin extended stay operating model

» launching QA function nation-wide in 2020

» Re-align property level compensation and upgrade field talent to improve executive and provide a strong, consistent experience to our guests

» testing certain modifications to our labor model to ensure we more consistently provide a favorable guest experience

» commercial engine to be focused on delivering more extended stay guests to our properties that are a good match for our product and operating model

» Revamp ESA website and call-center to focus on core ESA extended stay guests

» Reduce reliance on OTAs

Pillar II: Asset Light Franchise Unit Growth Plan

» building a pipeline1

• pipeline of 73 hotels, including 59 franchise hotels, or ~14% of existing supply1

» converting hotels to ESA brand

» 7 hotels conversions since 2018, including 4 franchise conversions

» expect to wind down on-balance sheet development in the next 12-18 months

» Strong early performance of new hotel openings and acceptance among franchise community means we do not need to do proof of concepts going forward

1 As of 3/31/2020; Actual pace and size of development, franchising, land acquisition,

hotel pipeline, and re-franchising activity may differ materially from indicated.

Pillar III: Maximize the value of ESH REIT

»559 hotels across 41 states

»plans to aggressively curate certain

hotels for better and higher use

»reviewing the entire portfolio for

opportunities to create shareholder

value

»plan to outline potential value creation

upside at an analyst day 2020

Actual pace and size of development, franchising, land acquisition, hotel pipeline, and

re-franchising activity may differ materially from indicated.

Pillar IV: Capital Returns to Shareholders

»Commitment to return most excess free cash flow to shareholders

through a strong dividend and share repurchases»Will continue to maintain a long dated, conservative balance sheet

»Capital returns during pandemic to be lower than historical, but will

remain a high prior medium and longer term

capital returns to paired shareholders1

(in millions)

$108$135

$340

$221$247

$301

2014 2015 2016 2017 2018 2019

1 Includes regular dividends, a special dividend and Paired Share repurchases

recent developments» Q1 RevPAR declined 5.8% compared to 19% for the industry1

» April and May 2020 RevPAR declined ~35% and 28% respectively compared to same periods in 2019, significantly better than industry, chainscale and competitive set1

» RevPAR has rebounded from $31 in early April to over $42 in early June

» Q1 Adjusted EBITDA of $97.7 million

» pipeline of more than 70 ESA hotels2

» More than 75% of ESA’s pipeline is franchise hotels

» 4 ESA hotels opened or converted so far in 2020

» recently extended debt maturities at attractive rates with a weighted average maturity rate of 5.9 years2

» No significant maturities until September 2024 and WACD of 4.4%2

» Over $700 million in cash on our balance sheet2

» analyst day planned in 2020

» Outline 3 year vision and financials for ESA

1 Data from the Company, public peer filings, STR and The Highland Group2 As of 3/31/2020

APPENDIX

experienced hospitality & consumer management team

Executives Experience Previous Firms

Bruce HaaseChief Executive Officer

• CEO since November 2019. Board

member of ESH Hospitality since 2018.

• Former CEO of Woodsprings Hotels, Inc.

2014-2016

• Various executive leadership roles at

Choice Hotels, Inc. over 12 years, most

recently as EVP Global Brands, Marketing

& Operations

Brian NicholsonChief Financial Officer

• CFO since May 2018

• Former CFO from 2016 to 2018 for The

Fresh Market

• Previous Financial Leadership roles at

Extended Stay America, The Fresh Market

and Driven Brands from 2004-2016, most

recently CFO with Driven Brands

Kelly PolingChief Commercial Officer

• Chief Commercial Officer since January

2020

• Over 30 years of leadership experience in

lodging, most recently as CEO of

Randy FoxExecutive Vice President, Hotel Operations

• EVP, Hotel Operations since November

2019. Formerly COO of InTown Suites and

Uptown Suites. EVP Operations at

Woodspring Hotels from 2012 to 2016.

Randy spent 12 years in Operations at

Red Roof Inn, most recently as SVP

Operations from 2007-2012.

expected economics of new build STAY hotel

strong economics for new builds

hotel P&L2

hotel revenue $2.2 million to $2.9 million

hotel expenses $0.9 million to $1.0 million

property EBITDA $1.3 million to $1.9 million

FFE reserve @ 3%-4% $0.1 million

net operating income $1.2 million to $1.8 million

build cost

construction costs $70 to $75k per key1

land costs $1.0 to $2.0 million per site

assumed stabilized economics2

# rooms ~124

occupancy 75%

ADR $65 - $85

RevPAR $49 - $64

1 Excluding soft cost items2 Expected average for a new ESA company owned hotel in year 2

tax efficient corporate structure

public

shareholders

and sponsors

Extended Stay

America, Inc.

trademark/

franchise company

management

company

operating

lessees

property owning

entities

~42%

~58%

100%

debt

corporation entities

ESH REIT Entities

ESH Hospitality,

Inc. (REIT)

unsecured senior notes

secured revolver

secured term loan B

secured revolver

property leases

A Paired Share entitles its holder to participate in 100% of the common

equity and earnings of both Extended Stay America, Inc. and ESH

Hospitality, Inc.

paired share structure

1 Assumes depreciation and amortization expense equal to 10% of revenues2 For Paired Share Structure, assumes 100% of REIT taxable income is distributed, of which

57% flows to the C-Corp and the C-Corp pays a 25%% tax rate

delivers superior free cash flow conversion

illustrative unlevered free cash flow less taxes C-Corp paired share structure

revenue $100 $100

EBITDA / % Margin $50 / 50% $50 / 50%

EBIT1 / % Margin $40 / 40% $40 / 40%

tax / % tax rate2 ($13) / 25% ($8) / 16.5%

Capex / % of revenue ($6) / 6% ($6) / 6%

unlevered FCF less taxes $31 $36

unlevered FCF less taxes as % of EBITDA 63% 72%

paired share

structure results in

~15% greater free

cash flow

RevPAR index

RevPAR Index is stated as a percentage and calculated by comparing RevPAR for comparable

system-wide hotels to the aggregate RevPAR of a group of competing hotels generally in the

same market. As such, the RevPAR Index is only a measure of RevPAR relative to certain

competing hotels and not a measure of our absolute RevPAR or profitability. We subscribe to

STR, Inc. ("STR"), an independent third-party service, which collects and compiles the data used

to calculate RevPAR Index. We select the competing hotels included in the RevPAR Index

calculation subject to STR's guidelines. The competing hotels included in STR guidelines will

generally include certain hotels that are not considered part of the extended stay lodging

segment of the hospitality industry and, instead, fall within the category of short-term stay

hotels. STR does not endorse the Company, or any other company, and STR data should not be

viewed as investment advice or as a recommendation to take a particular course of action.