EXTENDED STAY AMERICA INC.
EXHIBIT 11.1 -- Statement Re: Computation of Earnings Per Share
Three Month Period Six Month Period
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June 30, June 30, June 30, June 30,
1997 1996(1) 1997 1996(1)
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PRIMARY:
Average shares outstanding............ 95,306 66,561 92,991 60,456
Net effect of dilutive stock options -
based on the treasury stock method
using the average market price....... 1,679 387
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TOTAL............................. 95,306 68,240 92,991 60,843
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Net income (loss)..................... $(9,093) $ 1,656 $(6,623) $ 1,914
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Net income (loss) per share........... $ (0.10) $ 0.02 $ (0.07) $ 0.03
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FULLY DILUTED:
Average shares outstanding............ 95,306 66,561 92,991 60,456
Net effect of dilutive stock options -
based on the treasury stock method
using the greater of ending or
average market price................. 1,830 1,879
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TOTAL............................. 95,306 68,391 92,991 62,335
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Net income (loss)...................... $(9,093) $ 1,656 $(6,623) $ 1,914
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Net income (loss) per share............ $ (0.10) $ 0.02 $ (0.07) $ (0.03)
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(1) Amounts are restated to reflect the 2-for-1 stock split effected in July
1996 and the effect of the Merger.