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EQUITY-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
EQUITY-BASED COMPENSATION EQUITY-BASED COMPENSATION
The Corporation and ESH REIT each maintain a long-term incentive plan (“LTIP”), approved by their shareholders. Under each LTIP, the Corporation and ESH REIT may issue to eligible employees or directors restricted stock units (“RSUs”) or other equity-based awards, in respect of Paired Shares, with service, performance or market vesting conditions. The aggregate number of Paired Shares that may be the subject of awards under the LTIPs shall not exceed 8.0 million, of which no more than 4.0 million may be granted as incentive stock options. Each of the Corporation’s and ESH REIT’s LTIPs has a share reserve of an equivalent number of shares of Corporation common stock and ESH REIT Class B common stock. As of June 30, 2020, 4.2 million Paired Shares were available for future issuance under the LTIPs.
Equity-based compensation expense is recognized by amortizing the grant-date fair value on a straight-line basis over the requisite service period of each award. A portion of the grant-date fair value of all equity-based awards is allocated to a share of Corporation common stock and a portion is allocated to a share of ESH REIT Class B common stock. Equity-based compensation expense, which is included in general and administrative expenses in the accompanying condensed consolidated statements of operations, was $1.9 million and $3.0 million for the three and six months ended June 30, 2020, respectively, and $2.1 million and $4.3 million for the three and six months ended June 30, 2019.
As of June 30, 2020, unrecognized compensation expense related to outstanding equity-based awards and the related weighted-average period over which it is expected to be recognized subsequent to June 30, 2020, is presented in the following table. Total unrecognized compensation expense will be adjusted for forfeitures and the achievement of certain market-based conditions.
Unrecognized Compensation Expense Related to Outstanding Awards (in thousands)Remaining Weighted-Average Amortization Period (in years)
RSUs with service vesting conditions$8,080  1.6
RSUs with market vesting conditions3,471  2.2
Total unrecognized compensation expense$11,551  
RSU activity during the six months ended June 30, 2020, was as follows:
Service-Based AwardsPerformance-Based Awards -
Market Vesting
Number of
RSUs
(in thousands)		Weighted-
Average Grant-
Date Fair
Value		Number of
RSUs
(in thousands)		Weighted-
Average Grant-
Date Fair
Value
Outstanding at January 1, 2020928  $16.77  255  $16.56  
Granted356  $12.37  290  $11.52  
Settled(280) $17.73  (46) $18.58  
Forfeited(202) $16.80  (105) $15.23  
Outstanding at June 30, 2020802  $14.47  394  $12.97  
Vested at June 30, 2020132  $15.83  —  $—  
Nonvested at June 30, 2020670  $14.21  394  $12.97  

The grant-date fair value of awards with service vesting conditions is based on the closing price of a Paired Share on the date of grant. Service-based awards vest over a period of one to three years, subject to the grantee’s continued employment or service. The grant-date fair value of awards with market vesting conditions is based on an independent valuation. These awards vest at the end of a three-year period, subject to the grantee’s continued employment, with the ability to earn Paired Shares in a range of 0% to 150% of the awarded number of RSUs based on the total shareholder return of a Paired Share relative to the total shareholder return of other publicly traded companies identified in the award agreements. During the six months ended June 30, 2020, the grant-date fair value of awards with market vesting conditions were calculated using a Monte Carlo simulation model with the following key assumptions:

Expected holding period2.92 years
Risk–free rate of return1.43 %
Expected dividend yield7.01 %