EXTENDED STAY AMERICA INC
424B5, 1996-07-30
HOTELS & MOTELS
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                                                               Filed Pursuant to
                                                                    Rule 424B(5)
                                                      Registration No. (333-100)
 
                    SUPPLEMENT NO. 1 DATED JULY 26, 1996 TO
         PROSPECTUS DATED JULY 5, 1996 RELATING TO 15,003,030 SHARES


     On July 9, 1996, the Company completed the proposed acquisition of the
M & M Facilities on substantially the terms described on page 12 of the
Prospectus. Accordingly, all references in the Prospectus to the acquisition of
the M & M Facilities as "proposed" should be revised to give effect to its
consummation.


     On July 19, 1996, the Company distributed the Stock Dividend on
substantially the terms described on page 3 of the Prospectus. Accordingly, all
references in the Prospectus to a number of shares of Common Stock should be
doubled and all references to (i) price per share (including market, option, and
purchase prices) or (ii) earnings per share of Common Stock should be divided by
two.











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