EXTENDED STAY AMERICA INC. EXHIBIT 11 -- Statement Re: Computation of Earnings Per Share Three Month Period Ended ------------------------------ March 31, 1997 March 31, 1996 -------------- -------------- (1) PRIMARY: Average shares outstanding.............. 75,239 44,262 Net effect of dilutive stock options - based on the treasury stock method using the average market price........ 1,774 673 -------------- -------------- TOTAL..................... 77,013 44,935 ============== ============== Net income (loss)....................... $ 1,422 (429) ============== ============== Net income (loss) per share............. $ 0.02 (0.01) ============== ============== FULLY DILUTED Average shares outstanding.............. 75,239 44,262 Net effect of dilutive stock options -- based on the treasury stock method using the greater of ending or 1,774 673 average market price................. -------------- -------------- TOTAL..................... 77,013 44,935 ============== ============== Net income (loss)......................... $ 1,422 (429) ============== ============== Net income (loss) per share............... $ 0.02 (0.01) ============== ============== (1) Amounts are restated to reflect the 2-for-1 stock split effected in July 1996.