What happened Shares of Extended Stay America Inc (NYSE: STAY) were getting evicted by investors today after the discount hotel chain posted worse results than expected in its third-quarter report and lowered its guidance. As of 11:57 a.m. EDT, the stock was down 14.4%. Revenue in the period fell 1% to $350.9 million in part because the company sold four hotels, and missed estimates at $359.3 million. On the bottom line, adjusted earnings per share fell from $0.36 to $0.35, which was short of expectations at $0.38. Image source: Getty Images. So what Comparable hotel revenue per available room (RevPAR), a key industry metric, was flat for the quarter at $54.55 as average daily rate increased 0.4%, but occupancy declined by 40 basis points. Meanwhile, hotel operating margin fell 120 basis points to 57.2%. CEO Gerry Lopez called the performance "stable," but acknowledged that the results were short of expectations. He noted that weakness in the West overcame strength in the South and Southeast, and said the company was taking steps including personnel changes and a reallocation of sales resources in order to improve performance. Now what After the disappointing performance, Extended Stay America lowered its full-year outlook, calling for revenue of $1.27-$1.28 billion, down from a previous range of $1.28-$1.3 billion. It also sees RevPAR growth narrowing from 1.5-3.5% to 1-1.5%, and net income at $155-$161 million, down from previous guidance at $161-$174 million. Analyst estimates weren't available for comparison, but the guidance indicates the company is moving in the wrong direction. While management's ESA 2.0 initiative, which is focused on asset sales and refranchising, seems promising, it may take longer than expected for the company's performance to turn around. 10 stocks we like better than Extended Stay AmericaWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Extended Stay America wasn't one of them! That's right -- they think these 10 stocks are even better buys. Click here to learn about these picks! *Stock Advisor returns as of November 6, 2017Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.