EXTENDED STAY AMERICA, INC. OPENS FIRST HOTEL IN OAKLAND AREA

Press Release: Extended Stay America, Inc.

August 3, 1999
FORT LAUDERDALE, FL -- Extended Stay America, Inc. (NYSE:ESA) has opened a three-story StudioPLUS Deluxe Studios hotel located at 1260 S. Loop Road in Alameda, CA. The 88-room hotel is the company's first hotel in the Oakland area and its 27th in the state.

Weekly room rates for the new hotel are available from $399 for a Queen Deluxe room - a fraction of the cost you'd pay elsewhere for similar features. Nightly rates are also available.

According to President and Chief Executive Officer George D. Johnson, Jr., "The extended stay lodging market is the fastest growing segment of the hotel industry, and is quickly catching the interest of business professionals, people relocating and those on extended work assignments."

The Company owns and operates 26 other California-based extended stay lodging hotels under its StudioPLUS Deluxe Studios, Extended StayAmerica Efficiency Studios and Crossland Economy Studios brand names located in Bakersfield, Fresno, Los Angeles, Sacramento, San Diego, San Francisco, San Jose, Santa Barbara and Santa Rosa.

In the next few months, the company will open five more hotels in California.

"The appeal of StudioPLUS hotels reaches beyond the business and corporate community. Besides being ideal for professionals on extended or temporary assignments such as consulting or training, our properties are perfect for people building homes, relocating or attending family functions. We operate high-quality, affordable properties while serving the community's extended stay travel needs," said Mike Wilson, Vice President - Marketing.

StudioPLUS hotels offer approximately 300 to 425 square feet of living space and include fully-equipped kitchens with a refrigerator, stove, microwave, coffee maker, expanded cable TV with a remote control, a desk, free voice mail, free local calls and a computer data port. Some studios also offer dishwashers and sofa sleepers.

The properties also feature 24-hour, coin-operated, on-site laundry facilities for guests, fitness centers, convenient vending machines and outdoor pools or spas. Guests are provided with weekly housekeeping and twice-weekly towel service. Properties are generally staffed by seven to eight full-time employees.

Extended Stay America, Inc. was founded in January, 1995, by Mr. Johnson and H. Wayne Huizenga. Mr. Johnson was formerly President of the Consumer Products Division of Blockbuster Entertainment Corp., a division of Viacom, Inc. Mr. Huizenga, who is Chairman of the Board, also is Chairman and Co-Chief Executive Officer of AutoNation, Inc. and formerly Vice Chairman of Viacom, Inc., and Chairman and Chief Executive Officer of Blockbuster Entertainment Corp.

The Company, which is the fastest growing company-owned hotel chain in the U.S., currently operates 349 extended stay lodging hotels in 38 states, which includes 88 StudioPLUS Deluxe Studios, 222 Extended StayAmerica Efficiency Studios and 39Crossland Economy Studios facilities.

For reservations, locations or additional information on Extended Stay America, Inc., please call 1-800-EXT-STAY or visit the Company's Web site at www.extstay.com.

NOTE TO EDITORS: For copies of recent press releases from Extended Stay America via fax, at no charge, call 888/395-STAY (7829). For company information, logo and photos via the Internet, visit http://www.extstay.com

Contact:
Extended Stay America Inc., Fort Lauderdale
Monique Damiano, 954/713-1624
mdamiano@extstay.com
News-On-Demand: 888/395-STAY (7829)