Exhibit 99.1
EXTENDED STAYAMERICA LOGO



For Immediate Release                      For More Information, Contact:
                                           Robert A. Brannon, President & COO
                                           (864) 573-1603
                                           Gregory R. Moxley, CFO
                                           (864) 573-1635


                           EXTENDED STAY AMERICA, INC.
            AMENDS CREDIT FACILITY TO PROVIDE DEVELOPMENT FLEXIBILITY


Spartanburg, SC - December 17, 2001 - Extended Stay America, Inc. (NYSE:ESA), a
leading provider of extended stay lodging, today reported that it has amended
its $900 million bank credit facility to provide additional flexibility in
managing the development of new hotels. By increasing the total leverage
permitted under the credit facility, the Company expects that it will be able to
accelerate the development of hotels as market conditions warrant.

The Company has continued the construction of the sites that were under
construction at September 30, 2001. Due to short term uncertainties caused by
the terrorist events on September 11, 2001, however, the Company recently
deferred the commencement of construction of new hotels and began negotiating
extended periods of time to develop the sites that it had under option at
September 30, 2001. The amendment provides the Company with greater flexibility
in negotiating these extensions, continuing the development process which often
takes two or more years to complete, and commencing construction earlier than
would have otherwise been possible under the credit agreement.

The amendment modifies certain definitions and increases the total leverage
covenant from 4.75 to 5.25 for the period from January 1, 2002 to March 31,
2003. The leverage covenant returns to the previously scheduled level of 4.50
beginning April 1, 2003. The amendment institutes a pricing grid which increases
the interest rate on outstanding loans under the credit facility by 0.25% from
January 1, 2002 through March 31, 2002. Thereafter, the interest rate is
increased by 0.25% if total leverage is greater than or equal to 4.25 or by
0.75% if total leverage is greater than or equal to 4.75.

George D. Johnson, Jr., CEO, commented, "With the projected decline in the rate
of supply of new hotel rooms for the next few years, we anticipate that lodging
will benefit from expected increases in demand as our economy recovers from the
current recession. We believe that our Company will benefit from increased
market share by having additional hotels in operation during that period. This
amendment gives us the flexibility to accelerate our development as the economy
improves."

Extended Stay America currently owns and operates 425 hotels under the Extended
StayAmerica, StudioPLUS, and Crossland brands. The Company currently has 26
hotels under construction which are expected to be completed at various dates
through September 30, 2002. The Company has also identified 55 additional sites
with total development costs of approximately $450 million for which
construction could commence in 2002. The Company will continue to seek the
necessary approvals and permits for these sites so that construction can
commence as soon as possible within the constraints of the amended credit
agreement. While the Company does not currently expect that it will commence
construction on all of these sites in 2002, it will seek to accelerate the
number of construction starts based on a number of factors including
improvements in the overall US economy, improvements in demand for lodging
products in the overall lodging industry and improvements in the demand for the
Company's extended stay lodging products. Subject to adjustments based on the
factors discussed above, the Company currently plans to commence construction of
at least 15 hotels with total costs of approximately $150 million during 2002,
the majority of which are expected to open in 2003.


EXTENDED STAY AMERICA, INC.
PAGE TWO

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.

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