EXTENDED STAY AMERICA INC.
EXHIBIT 11.1 -- Statement Re: Computation of Earnings Per Share
Three Month Period Ended Nine Month Period Ended
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September 30, September 30, September 30, September 30,
1997 1996(1) 1997 1996(1)
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PRIMARY:
Average shares outstanding....................... 95,349 82,945 93,786 68,021
Net effect of dilutive stock options - based
on the treasury stock method using the
average market price........................... 1,444 1,849 1,607
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TOTAL................................ 96,793 84,794 93,786 69,629
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Net income (loss)................................ $ 5,644 $ 3,619 $ (979) $ 5,533
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Net income (loss) per share...................... $ 0.06 $ 0.04 $ (0.01) $ 0.08
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FULLY DILUTED:
Average shares outstanding....................... 95,349 82,945 93,786 68,000
Net effect of dilutive stock options -- based
on the treasury stock method using the
greater of ending or average market price...... 1,475 2,251 2,142
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TOTAL................................ 96,824 85,196 93,786 70,142
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Net income (loss).................................. $ 5,644 $ 3,619 $ (979) $ 5,533
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Net income (loss) per share........................ $ 0.06 $ 0.04 $ (0.01) $ 0.08
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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.