 2015 Q2 Earnings Call July 30, 2015 8:30 AM ET Exhibit 99.2 |
 2 Important Disclosure Information This presentation contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, future financial performance, including our 2015 outlook and performance free cash flow, debt reduction and distribution growth, as such, may involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ from those projected in the forward-looking statements, possibly materially. For a description of factors that may cause actual results or performance to differ from any forward-looking statements, please review the information under the headings “Cautionary Note Regarding Forward-looking Statements” and “Risk Factors” included in the combined annual report on Form 10-K of Extended Stay America, Inc. and ESH Hospitality, Inc. (collectively, the “Company”) filed with the SEC on February 26, 2015 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, and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company or 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 outcomes and 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 EBITDA, Adjusted EBITDA and Hotel Operating Margin. 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 the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with U.S. GAAP. |
 3 See Appendix for Adjusted EBITDA and Hotel Operating Margin Calculation Q2 Results Highlights Revenue Per Available Room (“RevPAR”) Average Daily Rate (“ADR”) Occupancy (%) +6.1% +8.5% -170bps Adjusted EBITDA 1 (Millions) Hotel Operating Margin 1 (%) Net Income (Millions) +8.7% +270bps +40.0% $45.69 $48.49 Q2 2014 Q2 2015 $57.98 $62.90 Q2 2014 Q2 2015 78.8% 77.1% Q2 2014 Q2 2015 $157.9 $171.7 Q2 2014 Q2 2015 $46.3 $64.8 Q2 2014 Q2 2015 54.4% 57.1% Q2 2014 Q2 2015 1 |
 4 Renovation Update Completed 8 renovations in April 2015 and began next Phase in June 2015 which will be completed by early 2016 382 Completed Renovations at end of Q2 Renovation Timeline Renovation Room Night Displacement Outlook |
 5 Segmentation Data Q2 2015 Length of Stay Revenue Mix Q2 2015 RevPAR Growth by Property Type Renovated as of 03/31/2015 Q2 2015 Contribution to Revenue Growth by Length of Stay 1-6 Nights 33% 30+ Nights 44% 7-29 Nights 23% 1-6 Nights 47% 7-29 Nights 29% 30+ Nights 24% Property Status RevPAR ADR Occupancy Renovated 1 7.6% 9.2% -110 bps Unrenovated 2.9% 5.9% -220 bps Under Renovations -0.3% 6.1% -450 bps Total 6.1% 8.5% -170 bps 1 |
 6 Distribution, Cash Balance and Net Debt Ratio Quarterly Paired Share Distribution 1 +13.3% Net Debt/TTM Adjusted EBITDA Ratio Distribution dates of August 27, 2015 and August 28, 2014 Includes Unrestricted and Restricted Cash Cash Balance (Millions) 2 4.7X 4.5X Q1 2015 Q2 2015 $0.15 $0.17 Q2 2014 Q2 2015 $248.8 $260.0 Q1 2015 Q2 2015 ¹ 2 |
 7 Q3 and Full Year 2015 Outlook 1 (In Millions) Revenue 1,280 $ to 1,295 $ Adjusted EBITDA 595 $ 605 $ Depreciation & Amortization 215 $ 205 $ Net Interest Expense 140 $ 137 $ Effective Tax Rate 23% 22% Net Income 171 $ 192 $ Capital Expenditures 190 $ 210 $ Full Year 2015 Outlook (In Millions) Revenue 355 $ to 362 $ Adjusted EBITDA 174 $ 179 $ Q3 2015 1 Outlook as of July 30, 2015 |
 8 APPENDIX |
 9 Non-GAAP Reconciliation of Net Income to EBITDA and Adjusted EBITDA For the Three and Six Months Ended June 30, 2015 and 2014 2015 2014 2015 2014 $ 64,805 46,284 $ Net income $ 92,665 62,365 $ 35,501 46,539 Interest expense, net 66,818 83,087 17,852 14,158 Income tax expense 26,826 19,217 50,529 46,950 Depreciation and amortization 99,712 92,277 168,687 153,931 EBITDA 286,021 256,946 2,803 2,429 Non-cash equity-based compensation 4,919 4,890 (873) (736) Other non-operating (income) expense 892 1,779 1,101 (1) 2,307 (2) Other expenses 2,744 (3) 6,592 (4) 171,718 $ 157,931 $ Adjusted EBITDA 294,576 $ 270,207 $ 8.7% Adjusted EBITDA % growth 9.0% (4) Includes public company transition costs of approximately $2.4 million, including approximately $0.9 million in costs incurred in connection with the preparation of the registration statement filed on June 10, 2014, consulting fees of approximately $1.9 million related to the implementation of certain key strategic initiatives, including review of our corporate infrastructure, and loss on disposal of assets of approximately $2.3 million. (3) Includes costs incurred in connection with the preparation of the registration statement filed on June 5, 2015 of approximately $0.7 million and loss on disposal of assets of approximately $2.0 million. Three Months Ended June 30, Six Months Ended June 30, (1) Includes costs incurred in connection with the preparation of the registration statement filed on June 5, 2015 of approximately $0.7 million and loss on disposal of assets of approximately $0.4 million. (2) Includes public company transition costs of approximately $1.3 million, including approximately $0.9 million in costs incurred in connection with the preparation of the registration statement filed on June 10, 2014, consulting fees of approximately $0.5 million related to the implementation of certain key strategic initiatives, including review of our corporate infrastructure, and loss on disposal of assets of approximately $0.5 million. (Unaudited) (In thousands) |
 10 Non-GAAP Reconciliation of Hotel Operating Profit and Hotel Operating Margin For the Three and Six Months Ended June 30, 2015 and 2014 2015 2014 % Variance 2015 2014 % Variance 335,384 $ 317,087 $ 5.8% Room revenues 618,682 $ 583,316 $ 6.1% 4,927 4,827 2.1% Other hotel revenues 9,220 8,914 3.4% 340,311 321,914 5.7% Total hotel revenues 627,902 592,230 6.0% 146,034 146,753 (0.5)% Hotel operating expenses (1) 289,455 286,842 0.9% 194,277 $ 175,161 $ 10.9% Hotel Operating Profit 338,447 $ 305,388 $ 10.8% 57.1% 54.4% 270 bps Hotel Operating Margin 53.9% 51.6% 230 bps (1) Excludes loss on disposal of assets of approximately $0.4 million, $0.5 million, $2.0 million and $2.3 million, respectively. (In thousands) (Unaudited) Six Months Ended June 30, Three Months Ended June 30, |