Extended Stay America, Inc. (The “Corporation”) and ESH Hospitality, Inc

building a better future

June 2017

esa.com disclosure important information

The information in this presentation is current only as of its date and may have changed. This presentation contains certain financial projections and forecasts and other forward looking information concerning our business, strategies, prospects, financial condition and results of operations, and we are not making any representation or warranty that this information is accurate or complete. See “Forward-Looking Information” below. Nothing in this presentation shall be deemed to update or confirm prior guidance.

Unless otherwise indicated or the context requires, the terms “Company,” Extended Stay,” “Extended Stay America,” “STAY,” “ESA,” “we,” “our” and “us” refer to Extended Stay America, Inc. (the “Corporation”) and ESH Hospitality, Inc. (the “REIT”) and their subsidiaries considered as a single enterprise.

FORWARD-LOOKING INFORMATION This presentation contains forward-looking statements within the meaning of the federal securities laws. Statements herein regarding our plans, objectives, goals, beliefs, business strategies, future events, business trends, future financial performance, outlook, expected performance, ongoing hotel reinvestment program, future hotel development and renovation programs, anticipated benefits or use of proceeds from any dispositions or franchising activity, future capital expenditures, free cash flow, distribution policies, ability to meet our debt service obligations and debt reduction include forward- looking statements. When used in this presentation, the words “believe,” “expect,” “target,” “anticipate,” “intend,” “estimate,” “will,” “look forward to” and variations of such words or similar expressions are intended to identify forward-looking statements. The forward-looking statements are not historical facts, and are based upon our current expectations, beliefs, estimates and projections, and various assumptions regarding our business, the lodging industry and the extended stay segment of the lodging industry, the economy and other future conditions, many of which, by their nature, are inherently uncertain and beyond our control. Our expectations, beliefs, estimates and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, estimates and projections will be realized or, even if substantially realized, will have the expected consequences to, or effects on, the Company, its business or operations. For a description of factors that may cause the Company’s actual results or performance to differ from future 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 28, 2017 and other documents of the Company on file with or furnished to the SEC. Any forward-looking statements made in this presentation are qualified by these cautionary statements. Any forward-looking statement speaks only as of the date hereof and 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.

NON-GAAP FINANCIAL MEASURES Adjusted EBITDA, Hotel Operating Profit and Hotel Operating Margin, which are detailed in the reconciliation tables that accompany this presentation, are used by the Company as supplemental performance measures. The Company believes these financial measures, including those provided on a Comparable Hotel basis, provide useful information to investors regarding our results of operations and allow investors to evaluate the ongoing operating performance of our hotels and facilitate comparisons between the Company and other lodging companies, hotel owners and capital- intensive companies. Adjusted EBITDA, Hotel Operating Profit and Hotel Operating Margin are not recognized terms under U.S. GAAP. Adjusted EBITDA, Hotel Operating Profit and Hotel Operating Margin as presented may not be comparable to measures calculated by other companies. These measures should not be considered as alternative measures of operating profit or cash flow provided by operating activities calculated in accordance with U.S. GAAP. The Company’s presentation of Adjusted EBITDA, Hotel Operating Profit and Hotel Operating Margin 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.

esa.com WHO WE ARE

esa.com Extended Stay America overview » the largest lodging REIT in North America by unit & room count with over 620 hotels & 69,000 rooms » manage all owned properties through a tax efficient paired share structure » focus on economy/midscale chain-scale with suburban locations

Extended Stay America hotel features

fully equipped kitchens

free grab-and-go breakfast

free in-room wi-fi

on-site laundry facilities

pet-friendly rooms available

our guests typically stay two weeks or longer

esa.com 1 why customers choose ESA Extended Stay America’s customers are typically working on projects or are in transition: corporate clients, small business travelers and those on personal stays primary reason why people choose ESA our customers

other price/value personal business

kitchen location

revenue mix by length of stay ESA demographics medium term

gender 52% male, 48% female (7-29 nts) short term (1-6 nts) HHI ~$75,000 long term kitchen 84% of guests use the kitchen during their stay (30 or more nts)

esa.com 2 our national scale and great locations are good for guests

Brand Parent number of rooms by mid-priced extended stay hotel1

69,383

34,192 Candlewood Suites

30,252 Townplace Suites

13,032 Home2

10,959 Hawthorn Suites

4,108 MainStay Suites

2,784 other various

1 Mid-Priced extended stay as defined by The Highland Group; # of rooms as of latest SEC filings for each corporation as of 3/1/2017 esa.com 3 our national scale and great locations

» provides geographic diversity for investors » locations have limited exposure to gateway cities, foreign travel and FX effects

33% of hotel operating profit1

36% of hotel operating profit1

esa.com 1 Hotel Operating Profit of ESA for the year ended 12/31/2016. 4 our guests’ self sufficiency and long stays create high operating margins

Operating TTM rev mix1 Avg. nightly rate1 margin 1 55% 1-4 nights 30% $75 52%

5-29 nights 28% $72 58% Extended 35% 30+ nights 42% $59 54% Stay overall America1 industry3

hotel operating margin » longer average length of stay drives higher occupancy (74% vs 66% industry average2) » plus weekly housekeeping and limited employees/services

» translates to high operating margins

1 Based on TTM results for ESA as of 12/31/16. Allocates fixed expenses evenly to all occupied rooms. See Appendix for Hotel Operating Margin reconciliation 2 Source: 2016 results for ESA and Smith Travel Research (“STR”) 3 Source: STR 2016 HOST Study; industry margins adjusted to exclude franchise and management fees esa.com 5 the last five years: established a foundation

» streamlined to one brand, over 620 owned/operated hotels » renovated entire portfolio1 » consistent RevPAR and EBITDA2 growth » tools & operating disciplines that enable growth • corporate sales team • revenue management • loyalty program • lean operations – “Kai ESA”

1 All hotels to be renovated by May 2017 2 See Appendix for EBITDA reconciliation esa.com 6 PERFORMANCE AND $ VALUATION %

esa.com demonstrated track record of strong performance1

revenue per available room (“RevPAR”) capital returns to paired adjusted funds from operations3 2 (in millions) shareholders (“AFFO”) (in millions) $49.23 $45.89 $359 $340 $339 $43.02 $299 $40.18 $263 $36.46 $168 $135 $108

2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

3 hotel operating margin adjusted EBITDA3 (in millions)

55.1% 53.7% 52.5% $603 $616 50.8% 51.7% $557 $519 $435

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

3ESA sold 53 hotels in December of 2015, which reduced adjusted EBITDA/AFFO, but increased RevPAR and Hotel Operating Margin 2Includes dividends and Paired Share repurchases 3See Appendix for Hotel Operating Margin, AFFO and Adjusted EBITDA reconciliations. esa.com 7 attractive valuations by key metrics1

2017 consensus free cash flow yield price/earnings ratio (share price / consensus 2017 EPS)

14.0% 30.0 12.0% 25.0 10.0% 20.0 8.0% 15.0 6.0% 4.0% 10.0 2.0% 5.0 0.0% 0.0 STAY Hotel C-Corps Hotel REITs STAY Hotel C-Corps Hotel REITs

2017 consensus EBITDA Consensus 2017 AFFO Yield 14.0 13.0% 12.0 12.5% 10.0 12.0% 8.0 11.5% 6.0 11.0% 4.0 10.5% 10.0% 2.0 9.5% 0.0 STAY Hotel REITs STAY Hotel C-Corps Hotel REITs

1 Based on closing Thompson First Call consensus and closing share prices as of close on 2/21/2017 Hotel C Corp average include Choice Hotels, Inc., Hilton Worldwide Inc., La Quinta Holdings, Inc., Marriot Inc., Hyatt Hotels Inc., Wyndham Worldwide Inc., and Intercontinental Hotel Group Inc. where available Hotel REIT average include LaSalle Inc., Pebblebrook Hotel Trust, Felcor Lodging Trust Inc., Hersha Trust Inc., Chesapeake Lodging Trust Inc., Chatham Lodging Trust Inc., Apple Hospitality Inc., RLJ Lodging Trust Inc., Summit Hotels Inc., Park Hotels & Resorts Inc. and DiamondRock Hospitality Inc. where available esa.com 8 strong defensive play

» low cost, long dated debt maturities » pricing gap among key competitors1 » low supply growth in closets chain scales2 » high operating margins mean low operating leverage » low breakeven occupancy

ADR growth rates: 2012-TTM3 average ADR for key competitors1

30% $110.00 $104 27% Key competitor 25% $100.00 ~$27 average: $93 20% $90.00 16% ADR gap $82 15% 12% $80.00 10% $70.00 $66 $60.00 5% $50.00 0% $40.00 1 2 3

Note: Analysis shows two largest peers with public information available 1 Source: ESA data represents ADR growth rate for TTM 6/30//2016 on a Comparable Hotel basis from TTM 12/31/2012. TownePlace Suites and Candlewood data estimates based on SEC filings of MAR and IHG, respectively. 2Economy Chain-scale has appxoximately 25% of the supply growth rate as the overall industry per STR and Lodging Econometrics (“LE”) 3 Source: ESA data for TTM 12/31/2016 for ESA. TownePlace Suites and Candlewood data estimates based on SEC filings of MAR and IHG, respectively. . esa.com 9 pro forma free cash flow business model and structure result in high levels of company free cash flow available for reinvestment in business, return to shareholders, and debt reduction/cash build

high margin TTM adjusted EBITDA m1 business model margin: 48.9% $622

average interest rate: attractively priced debt m2 4.4% $120

expected tax rate: tax efficient structure m3 23.5% $55

Pro Forma 4 maintenance capex $90 m

strong free cash flow $357 m

1Trailing Twelve Months Ended 3/31/17 Adjusted EBITDA for ESA. See appendix for Adjusted EBITDA reconciliation. 2Cash interest expense assuming current debt balance and interest rates as of 3/31/2017. 3 Pro Forma Taxes. 4Pro forma annual capital expenditures. esa.com 10 recent developments

» Strong Performance in Q1 2017 » +5.5% Adjusted EBITDA and +8.9% Net Income » + 11.7% Adjusted FFO & +15.7% Adjusted Paired Share Income Per Paired Share1 » Q1 Hotel Operating Profit margin expanded 210 basis points1 » 5 LOIs or Purchase-Sale Agreements for land for new prototype hotel signed in 2017 » Increased Quarterly Dividend 10.5% to 21¢ per Paired Share » Increased 2017 RevPAR and Adjusted EBITDA Guidance

Q1 Adjusted Paired Share Income Q1 Adjusted EBITDA1 Per Paired Share (in millions) $0.16 $135 +15.7% $0.15 +5.5% $129.6 $0.15 $130

$0.14 $125 $0.13 $122.8 $0.13 $120 $0.12 millions in $115 $0.11

$0.10 $110 1Q16 1Q17 1Q16 1Q17

esa.com 11 1 See appendix for non-GAAP reconciliations ESA 2.0

esa.com the next 5 years: transform to ESA 2.0

» uniquely focused on our guests, our segment » return to unit growth, both owned/ operated and franchised • grow to over 700 hotels with approximately ~70% owned / ~30% franchise mix1 • We believe the market potential exists to double our footprint in the US » asset merchant approach • buy, sell, transact, develop, & improve real estate site-by-site » significant financial performance & ongoing strength

1 Actual pace and size of development, franchising, land acquisition, hotel pipeline, and re-franchising activity may differ materially from indicated

esa.com 12 return to unit growth

» begin building a pipeline • expect to sign 4-8 LOIs in 20171

» expect to build between 70-80 new ESA hotels by 20211 • ~50% owned and ~50% franchised

» expect a pipeline in 2021 of approximately 100 hotels1 • expect ~2/3 of pipeline to be franchise hotels

» expect to refranchise approximately 150 existing owned hotels at attractive multiples1

1 Actual pace and size of development, franchising, land acquisition, hotel pipeline, and re-franchising activity may differ materially from indicated esa.com 13 portfolio transformation 2016-2021 owned becoming asset lighter & improving quality of owned assets franchised » owned hotel average property EBITDA increases from $1.1 million in 2015 to $1.6 million in 2021 % owned 68% % owned 73% 799 % owned 65 100% 704 30 40 255 35 150 150 629 190 544 514

current owned new franchised new dispositions refranchised 1 2021 pipeline total with builds builds pipeline

1 Assumes all dispositions are with franchise agreements esa.com 14 asset optimization

» monetize excess land • room additions • selling a portion of the parcel

» ESA redevelopment • tearing down existing hotel and re-building another • mixed-use building with 3rd party developer capital

» future renovations • customized capital spend depending on asset and market potential beginning in 20191

1 ESA will likely begin testing renovations in 2018

esa.com 15 cash flow generation enables significant return of capital and deleveraging, while also investing in the business and growing EBITDA

current state: 2016 2017-2021 Future state: 2021

$3.3b adj EBITDA

$900m sale proceeds

$616m adj EBITDA1 $1.5b returned $700m+ adj EBITDA to shareholders 4.2x net leverage ($7-$8 per paired ~3.5x net leverage share) 2 by 2018

$400m debt retired

$1.3b capex3

1 See appendix for Comparable Hotel Adjusted EBITDA reconciliation. 2Includes dividends and Paired Share repurchases. Per Paired Share amount is based on total returned divided by the number of Paired Shares outstanding as of 12/31/2016. All future capital returns subject to approval by ESA and ESH REIT Board of Directors. Actual capital returns may differ materially from indicated. 3 Includes $500 million of new build capital; Capital spending is subject to approval by ESA and ESH REIT Board of Directors. Actual capital spending may differ materially from indicated. esa.com 16 APPENDIX

esa.com experienced hospitality & consumer management team Executives Experience Previous Firms Gerry Lopez • CEO since August 2015 Chief Executive Officer • Former President and CEO of AMC Entertainment Jonathan Halkyard • CFO since January 2015 Chief Financial Officer • Formerly with Caesars Entertainment Corp. in various operational & financial positions, most recently CFO

Tom Bardenett • COO since 2015 Chief Operating Officer • Previously with Crossroads Hospitality, the operations division of Interstate Hotels & Resorts, for 19 years, most recently as President and EVP of Operations

Jim Alderman • Chief Asset Merchant since 2016 Chief Asset Merchant • Over 30 years of leadership experience in commercial real estate, hotels and restaurants, most recently serving as Chief Development Officer with Kimpton Hotels Tom Buoy • EVP, Marketing and Revenue Executive Vice President, Marketing and Management since 2011 Revenue Management • Held various positions with Morgans Hotel Group Co. from 1999 to 2011, most recently as SVP of Revenue Management John Dent • General Counsel and Corporate Secretary General Counsel and Corporate Secretary since 2015 • Formally with Hilton Worldwide, Inc from 2000-2014, in various legal positions, most recently Senior Vice President and Deputy General Counsel esa.com 17 attractive debt profile

» long dated maturities – weighted average maturity of 7.3 years1 » low cost of debt – weighted average cost of debt 4.4%1 » mix of covenant light term loan B and unsecured notes » net leverage target of 3.5x by end of 2018

maturity amount/ interest 4 debt capitalization1 declining net leverage ratio date millions rate

2 Term Loan B 2023 $1,294 L + 250 7.9x ESH REIT revolver ($350m) 2021 $35 L + 275

ESA revolver ($50m) 2021 $0 L + 300 5.4x 4.9x total secured debt $1,329 4.2x 4.2x 3.5x est senior unsecured notes 2025 $1,300 5.25%

preferred stock3 2018 $21 8.00%

total unsecured debt $1,321

total company debt $2,650 2012 2013 2014 2015 2016 2018

1As of 3/31/2017 $500m swapped to fixed LIBOR of 1.175% as of 3/31/17 3Redeemable at the right of the holder in November 2018. Mandatorily redeemable in November 2020. 4 Net Leverage ratio formula is (Total Debt – Cash) / TTM Adjusted EBITDA esa.com 18 expected economics of new build STAY hotel strong economics for new builds

assumed stabilized economics1 build cost

construction costs $85 to $95k per key # rooms ~110-120

land costs $1.5 to $2.0 million per site occupancy 75% ADR $75 - $85 hotel P&L1 RevPAR $56 - $64

hotel revenue $2.3 million to $2.7 million

hotel expenses $0.9 million to $1.0 million

property EBITDA $1.4 million to $1.7 million

margin % 58-63%

FFE reserve @ 3%-4% $0.1 million to $0.1 million

net operating income $1.3 million to $1.6 million

1 Expected average P&L for a new ESA owned hotel in year 2 esa.com 19 tax efficient corporate structure

100% public ~44% shareholders and sponsors ESH REIT Entities corporation entities

debt ~56% secured revolver Extended Stay America, Inc.

secured term loan B

ESH Hospitality, secured revolver Inc. (REIT)

senior unsecured notes

management operating trademark company company lessees

property leases

property owning entities

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. esa.com 20 paired share structure delivers superior free cash flow conversion illustrative unlevered free cash flow less taxes C-Corp paired share structure revenue $100 $100 paired share

EBITDA / % Margin $50 / 50% $50 / 50% structure results in ~21% greater free 1 EBIT / % Margin $40 / 40% $40 / 40% cash flow tax / % tax rate2 ($16) / 40% ($10) / 24%

Capex / % of revenue ($6) / 6% ($6) / 6% unlevered FCF less taxes $28 $34 unlevered FCF less taxes as % of EBITDA 56% 68%

1 Assumes depreciation and amortization expense equal to 10% of revenues 2 For Paired Share Structure, assumes 100% of REIT taxable income is distributed, of which 56% flows to the C-Corp and the C-Corp pays a 39.5% tax rate

esa.com 21 EXTENDED STAY AMERICA, INC. NON-GAAP RECONCILIATION OF ROOM REVENUES, OTHER HOTEL REVENUES AND HOTEL OPERATING EXPENSES TO HOTEL OPERATING PROFIT AND HOTEL OPERATING MARGIN FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2016, 2015, 2014, 2013 and 2012 (In thousands) (Unaudited)

Twelve Months Ended December 31, 2016 2015 2014 2013 2012 2011 2010 Room revenues $ 1,250,865 $ 1,265,653 $ 1,195,816 $ 1,113,956 $ 984,273 $ 912,988 $ 848,621 Other hotel revenues 19,728 19,100 17,659 17,787 16,898 18,693 17,354 Total hotel revenues 1,270,593 1,284,753 1,213,475 1,131,743 1,001,171 931,681 865,975 Hotel operating expenses (1) 570,032 594,788 586,497 537,661 492,722 462,726 450,507 Hotel Operating Profit $ 700,561 $ 689,965 $ 626,978 $ 594,082 $ 508,449 $ 468,955 $ 415,468 Hotel Operating Margin 55.1% 53.7% 51.7% 52.5% 50.8% 50.3% 48.0%

(1) Excludes loss on disposal of assets of approximately $10.7 million, $9.3 million, $5.6 million, $2.9 million, $0.9 million, $0.6 million, and $2.6 million, respectively.

esa.com 22 EXTENDED STAY AMERICA, INC. NON-GAAP RECONCILIATION OF ROOM REVENUES, OTHER HOTEL REVENUES AND HOTEL OPERATING EXPENSES TO HOTEL OPERATING PROFIT AND HOTEL OPERATING MARGIN FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2016, 2015, 2014, 2013 and 2012 (In thousands) (Unaudited)

(1) Excludes loss on disposal of assets of approximately $10.7 million, $9.3 million, $5.6 million, $2.9 million, $0.9 million, $0.6 million, and $2.6 million, respectively.

esa.com 23 EXTENDED STAY AMERICA, INC. NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2016, 2015, 2014, 2013, 2012, 2011 and 2010 (In thousands) (Unaudited)

Twelve Months Ended December 31, 2016 2015 2014 2013 2012 2011 2010 Net income $ 163,352 $ 283,022 $ 150,554 $ 82,656 $ 22,281 $ 46,635 $3,284,770 Interest expense, net 164,537 137,782 149,364 234,459 257,349 211,924 216,508 Income tax expense (benefit) 34,351 76,536 45,057 (4,990) 4,642 7,050 (121,949) Depreciation and amortization 221,309 203,897 187,207 168,053 129,938 120,438 317,598 EBITDA 583,549 701,237 532,182 480,178 414,210 386,047 3,696,927 Non-cash equity-based compensation 12,000 10,500 8,803 20,168 4,409 4,730 290 Other non-operating (income) expense (1,576) 2,732 3,763 — — — — Impairment of long-lived assets 9,828 9,011 2,300 3,330 1,420 — 44,605 Gain on sale of hotel properties — (130,894) (864) — — — — Restructuring expenses — — — 605 5,763 10,491 — Acquisition transaction expenses — — — 235 1,675 593 21,521 Reorganization gain, net — — — — — — (3,430,528) Other expenses 11,857 (1) 10,495 (2) 10,476 (3) 14,094 (4) 7,431 (5) 8,003 (6) 2,638 (7) Adjusted EBITDA $ 615,658 $ 603,081 $ 556,660 $ 518,610 $ 434,908 $ 409,864 $ 335,453

(1) Includes loss on disposal of assets of approximately $10.7 million, costs incurred in connection with the fourth quarter 2016 secondary offerings of approximately $1.1 million and transaction costs of approximately $0.1 million due to the revision of an estimate related to the sale of the 53 hotel properties.

(2) Includes loss on disposal of assets of approximately $9.3 million, costs incurred in connection with the preparation of the registration statement filed in June 2015 and the November 2015 secondary offering of approximately $0.9 million and transaction costs of approximately $0.3 million related to the sale of the 53 hotel properties.

(3) Includes loss on disposal of assets of approximately $5.6 million, public company transition costs of approximately $3.0 million, including approximately $1.5 million in costs incurred in connection with the August 2014 secondary offering, and consulting fees of approximately $1.9 million related to the implementation of certain key strategic initiatives, including review of our corporate infrastructure.

(4) Includes costs related to preparations for our initial public offering of approximately $11.2 million, consisting primarily of the restructuring and reorganization as part of our initial public offering, and loss on disposal of assets of approximately $2.9 million.

(5) Includes consulting fees of approximately $4.9 million related to the implementation of certain key strategic initiatives, including services related to pricing and yield management projects, costs related to preparations for our initial public offering of approximately $1.6 million, consisting primarily of the restructuring and reorganization as part of our initial public offering, and loss on disposal of assets of approximately $0.9 million.

(6) Includes consulting fees related to implementation of certain key strategic initiatives, including services related to pricing and yield management projects, of approximately $7.4 million and loss on disposal of assets of approximately $0.6 million.

(7) Includes loss on disposal of assets of approximately $2.6 million.

esa.com 24 EXTENDED STAY AMERICA, INC. NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA FOR THE THREE MONTHS ENDED MARCH 31, 2017 AND 2016 (In thousands) (Unaudited)

Three Months Ended March 31, 2017 2016 Net income $ 16,063 $ 14,753 Interest expense, net 33,606 46,985 Income tax expense 4,483 2,896 Depreciation and amortization 57,671 53,308 EBITDA 111,823 117,942 Non-cash equity-based compensation 2,683 2,680 Other non-operating income (1,221) (1) (878) (2) Impairment of long-lived assets 12,423 - Other expenses 3,894 (3) 3,055 (4) Adjusted EBITDA $ 129,602 $ 122,799 % growth 5.5%

(1) Includes change in mark-to-market value of interest rate swap of approximately $1.3 million and non-cash foreign currency transaction loss of approximately $0.1 million. (2) Includes non-cash foreign currency transaction gain of approximately $0.9 million.

(3) Includes loss on disposal of assets of approximately $3.5 million and costs incurred in connection with the March 2017 secondary offering of approximately $0.4 million. (4) Includes loss on disposal of assets of approximately $2.9 million and transaction costs of approximately $0.2 million due to the revision of an estimate related to the sale of 53 hotel properties in December 2015.

esa.com 25 esa.com 26 EXTENDED STAY AMERICA, INC. NON-GAAP RECONCILIATION OF NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO FUNDS FROM OPERATIONS, ADJUSTED FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS PER PAIRED SHARE FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015 (In thousands, except per share and per Paired Share data) (Unaudited)

Twelve Months Ended December 31, 2016 2015 2014 2013 2012

Net income per Extended Stay America, Inc. common share - diluted $ 0.35 $ 0.55 $ 0.19 $ 0.49 $ 0.12

Net income attributable to Extended Stay America, Inc. $ 69,932 $ 113,040 $ 39,596 $ 86,231 $ 20,732 common shareholders Noncontrolling interests attributable to Class B 93,404 169,966 110,942 (4,305) — common shares of ESH REIT Real estate depreciation and amortization 216,950 199,857 183,621 164,646 126,999 Impairment of long-lived assets 9,828 9,011 2,300 3,330 1,420 Gain on sale of hotel properties - (130,894) (864) — — Tax effect of adjustments to net income attributable to Extended Stay America, Inc. common shareholders (50,728) (24,449) (43,556) (10,485) (24,143) Funds from Operations 339,386 336,531 292,039 239,417 125,008 Debt extinguishment costs 26,233 3,014 9,405 25,941 45,065 Restructuring expenses — — — 605 5,763 Acquisition transaction expenses — — — 235 1,675 Tax effect of adjustments to Funds from Operations (6,286) (622) (2,220) (3,006) (9,871) Adjusted Funds from Operations $ 359,333 $ 338,923 $ 299,224 $ 263,192 $ 167,640

esa.com 27