SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Corporation Intercompany Facility

In July 2020, the Corporation, as borrower, and ESH REIT, as lender, entered into an unsecured credit facility (the "Corporation Intercompany Facility"). Under the Corporation Intercompany Facility, the Corporation may borrow up to $150.0 million. Loans under the facility bear interest at an annual rate of 4.5%. In addition to paying interest on outstanding principal, the Corporation is required to pay a commitment fee to ESH REIT of 0.25% on the unutilized facility balance. There is no scheduled amortization under the facility and the facility matures on July 2, 2025. Obligations under the Corporation Intercompany Facility and guarantees thereof are unsecured and fully subordinated to the obligations of the Corporation under the Corporation Revolving Credit Facility. The Corporation has the option to prepay outstanding balances under the facility without penalty. As of August 10, 2020, the outstanding balance under the facility was $0.

ESH REIT Revolving Credit Facility Repayment

On August 6, 2020, ESH REIT repaid the $350.0 million outstanding balance under the ESH REIT Revolving Credit Facility. As of August 10, 2020, the outstanding balance under the facility was $0.

Distribution

On August 10, 2020, the Board of Directors of ESH REIT declared a cash distribution of $0.01 per share for the second quarter of 2020 on its Class A and Class B common stock. This distribution is payable on September 8, 2020 to shareholders of record as of August 25, 2020.

COVID-19 Pandemic Update

We expect our business and operational outlook to continue to be materially negatively impacted by the COVID-19 pandemic, the impact of which will hinder the ability to predict future results. As the pandemic evolves, we continue to evaluate its impact on our operations, financial condition and current and future business strategies. Additionally, we continue to assess our ability to navigate industry, market and overall economic conditions. We may implement changes to our current and future business strategies as a result of the volatility related to COVID-19, with a focus on balancing the preservation of liquidity with other balance sheet considerations, such as necessary capital expenditures and reductions in leverage. As of July 31, 2020, the Company had unrestricted and restricted cash and cash equivalents of $685.2 million.