NEW YORK (TheStreet) -- Extended Stay America (STAY) shares are down 20% to $18.65 in trading on Friday after the hotel operator reported its third quarter earning results before the opening bell today.
The company, the largest owner and operator of company banded hotels in North America, saw hotel operating expenses increase 9.8% over the same period last year to $159.1 million while its operating margin decreased to 53.1% from 54.3% last year.
The company saw a 0.8% increase in room occupancy and a 7.4% increase in average daily rates which led to an 8.4% increase in room revenues to $334 million. The company generated $338.6 million in total revenue, a 9.9% increase over the previous year's quarter, but short of the $343.83 million analysts were expecting for the period.
Extended Stay also reported adjusted earnings of 29 cents per diluted that was 5 cents short of expectations.
The company guided its full year revenue estimates between $1.21 billion and $1.216 billion, below analysts' $1.23 billion expectations.
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