EXHIBIT 11.1
STATEMENT RE: COMPUTATION OF PER SHARE LOSS
EXTENDED STAY AMERICA, INC.
THREE MONTH PERIOD ENDED
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MARCH 31, 1995 MARCH 31, 1996
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Weighted average shares issued and outstanding...................... 3,681,966 22,467,393
Additional dilution of shares issued on August 18, 1995............. 6,381,415
Effect of employee stock options outstanding........................ 632,897
Effect of shares issued to underwriters upon execution of mortgage
loan agreement subsequent to September 30, 1995.................... 792,739
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Weighted average shares (A)......................................... 11,489,017 22,467,393
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Net (loss).......................................................... $ (248,601) $ (429,310)
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Net (loss) per common share......................................... $ (0.02) $ (0.02)
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(A) The net loss per common share amount for the three months ended March 31,
1996 has been computed in accordance with Accounting Principles Board
Opinion No. 15. The net loss per common share amount for the three months
ended March 31, 1995 has been computed in accordance with a Staff
Accounting Bulletin (SAB) of the Securities and Exchange Commission.
According to the SAB, equity securities, including stock, warrants, options
and other potentially dilutive securities, issued within a twelve-month
period prior to an initial public offering of common stock must be treated
as common stock equivalents for all periods presented if the issue price of
the common stock or the exercise price of the warrants, options or other
potentially dilutive securities is substantially less than the initial
public offering price, including loss years where the impact of the
incremental shares is anti-dilutive. As permitted by the SAB, the treasury
stock method has been used in determining the weighted average number of
shares of common stock outstanding during the period presented.