Revenue during the quarter went down marginally by 0.21 percent to $295.72 million from $296.34 million in the previous year period. Gross margin for the quarter expanded 573 basis points over the previous year period to 53.92 percent. Total expenses were 76.04 percent of quarterly revenues, up from 33.50 percent for the same period last year. That has resulted in a contraction of 4254 basis points in operating margin to 23.96 percent.

Operating income for the quarter was $70.86 million, compared with $197.05 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $142.47 million compared with $127.10 million in the prior year period. At the same time, adjusted EBITDA margin improved 529 basis points in the quarter to 48.18 percent from 42.89 percent in the last year period.

Extended Stay America’s chief executive officer, Gerry Lopez, commented, "We are very pleased with our performance in the fourth quarter and for the full year of 2016. Our RevPAR growth rates exceeded the lodging industry which, when added to solid expense controls and great work by our field based teams of operators, resulted in outstanding performance over the quarter and year. The strong numbers allowed us to invest in our assets and future growth plans, to the tune of $225 million in capital expenditures, reduce our debt by $171 million and return $340 million to paired shareholders in the form of dividends or share repurchases. Investments in the estate, debt reduction and capital returned to shareholders are exactly the priorities we set forth in our Investor Day last June."

For financial year 2017, Extended Stay America, Inc forecasts revenue to be in the range of $1,279 million to $1,305 million. The company projects net income to be in the range of $181 million to $194 million.