Extended Stay America Announces Tax Treatment for 2021 Distributions
CHARLOTTE, N.C., Jan. 28, 2022 (GLOBE NEWSWIRE) — Extended Stay America, Inc. and ESH Hospitality, Inc. (together, the “Company”), today announced the tax treatment for the aggregate distributions of $2.19 per paired share paid to Extended Stay America, Inc.’s common shareholders and ESH Hospitality, Inc.’s Class A and Class B common shareholders during the calendar year ended December 31, 2021.
For the tax year ended December 31, 2021, ESH Hospitality, Inc.’s aggregate distributions of $0.44 per Class A and Class B common shares were classified as 80.56% Ordinary Income and Section 199A Qualified Business Income and 19.44% Capital Gain Income. For the tax year ended December 31, 2021, Extended Stay America Inc.’s aggregate distributions of $1.75 per common share were classified as 100% Qualified Dividend.
Shareholders are encouraged to consult with their tax advisors as to the specific tax treatment of ESH Hospitality, Inc.’s and Extended Stay America, Inc.’s distributions. The information contained herein does not constitute tax advice and does not purport to be complete or to describe the consequences that may apply to stockholders. The Company does not provide tax advice to its stockholders.
| Dividend | Ordinary Income/ | Capital Gain | Qualified | |||||||||||||
| per Share | Section 199A Income | Income | Dividend | Total | ||||||||||||
| ESH Hospitality, Inc. | $ | 0.44 | 80.56 | % | 19.44 | % | 0.00 | % | 100.00 | % | ||||||
| Extended Stay America, Inc. | $ | 1.75 | 0.00 | % | 0.00 | % | 100.00 | % | 100.00 | % | ||||||
| $ | 2.19 | |||||||||||||||
| ESH | Extended Stay | Ordinary Income/ | Capital Gain | Qualified | ||||||||||||
| Amount Per Dividend Date | Hospitality, Inc. | America, Inc. | Total | Section 199A Income | Income | Dividend | Total | |||||||||
| January 20, 2021 | $ | 0.35 | $ | – | $ | 0.35 | 80.56 | % | 19.44 | % | 0.00 | % | 100.00 | % | ||
| March 26, 2021 | $ | 0.09 | $ | – | $ | 0.09 | 80.56 | % | 19.44 | % | 0.00 | % | 100.00 | % | ||
| June 16, 2021 | $ | – | $ | 1.75 | $ | 1.75 | 0.00 | % | 0.00 | % | 100.00 | % | 100.00 | % | ||
| Total | $ | 0.44 | $ | 1.75 | $ | 2.19 | ||||||||||
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events, or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the company’s control, that may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, and other risks described in documents subsequently filed by the company from time to time with the SEC.
About Extended Stay America, Inc. and ESH Hospitality, Inc.
On June 16, 2021, Extended Stay America, Inc. and its controlled subsidiary, ESH Hospitality, Inc. were acquired by funds managed by Blackstone Real Estate Partners and Starwood Capital Group.
Contacts
Investors and Media:
Kathy Long
(980) 345-1500 ext. 2006
ir@esa.com
