Extended Stay America Inc (NASDAQ:STAY) Q3 2019 Earnings Conference Call Transcript
Nov 07, 2019 • 08:00 am ET
Thank you for standing by. This is the conference operator. Welcome to the Extended Stay America's Third Quarter 2019 Earnings Conference Call. [Operator Instructions]
After the presentation, there will be an opportunity to ask questions. [Operator Instructions]
I would now like to turn the conference over to Rob Ballew, Vice President, Investor Relations. Please go ahead.
Good morning and welcome to Extended Stay America's third quarter 2019 conference call. Both the third quarter earnings release and an accompanying presentation are available on the Investor Relations portion of our website at esa.com, which you can access directly at www.aboutstay.com. Joining me on the call are Jonathan Halkyard, Chief Executive Officer, and Brian Nicholson, Chief Financial Officer. After prepared remarks by Jonathan and Brian, there will be a question-and-answer session.
Before we begin, I would like to remind you, some of our discussions today will contain forward-looking statements, including a discussion of our 2019 outlook. Actual results may differ materially from those indicated in the forward-looking statements. Forward-looking statements made today speak only as of today. The factors that could cause actual results to differ from those implied by the forward-looking statements are discussed in our Form 10-K filed with the SEC on February 23 of 2019.
In addition, on today's call we will reference certain non-GAAP measures. More information regarding these non-GAAP measures, including reconciliations with comparable GAAP measures are included in the earnings release and Form 10-Q filed yesterday evening with the SEC. With that I will turn it over to Jonathan.
Thanks, Rob and good morning everyone. Thank you for joining us this morning to discuss our third quarter 2019 results. Before we begin, I'd like to thank my 8,000 colleagues out in the field for their hard work this quarter. When you run at greater than 80% occupancy, like we do in high season and so many of your guests see your business like a home away from home as ours do. It takes a special team to make each hotel work. That our associates can do this day in and day out and are still engage that they give our Company a 4.0 rating on Glassdoor among the highest in the industry The things that makes me so proud to work here with my colleagues. We accomplished a lot this quarter. During the third quarter this team managed through a challenging top line environment by fortifying our relationships with our core extended-stay guests. We built on our recent momentum with the franchise community, now boasting a pipeline equal to 14% of our room base nearly double the level a year ago. Our owned hotel development is at full steam with our first hotel opening next month and then about one per month through most of 2020.,
We've strengthened our balance sheet with a highly successful bond offering in September and just increased our capital return guidance to return more than 10% of our market capitalization to our shareholders this year. I'd like to spend a few minutes on