EXTENDED STAY AMERICA INC. EXHIBIT 11 -- Statement Re: Computation of Earnings Per Share THREE MONTH PERIOD ENDED NINE MONTH PERIOD ENDED ---------------------------- ---------------------------- SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 1996 1995 1996 1995 ------------- ------------- ------------- ------------- (In thousands, except per share data) PRIMARY: Average shares outstanding 67,571 21,712 54,655 21,712 Net effect of dilutive stock options - based on the treasury stock method using the average market price................ 1,494 1,266 1,253 1,265 ------- ------- ------- ------- TOTAL............................. 69,065 22,978 55,908 22,978 ======= ======= ======= ======= Net income (loss).................... $ 2,293 $ (491) $ 2,279 $(1,253) ======= ======= ======= ======= Net income (loss) per share.......... $ 0.03 $ (0.02) $ 0.04 $ (0.05) ======= ======= ======= ======= FULLY DILUTED Average shares outstanding........... 67,571 21,712 54,655 21,712 Net effect of dilutive stock options -- based on the treasury stock method using the greater of ending or average market price............. 1,897 1,266 1,736 1,266 ------- ------- ------- ------- TOTAL............................. 69,468 22,978 56,391 22,978 ======= ======= ======= ======= Net income (loss)......................... $ 2,293 $ (491) $ 2,279 $(1,253) ======= ======= ======= ======= Net income (loss) per share............... $ 0.03 $ (0.02) $ 0.04 $ (0.05) ======= ======= ======= =======