For the past four quarters, demand grew faster than supply for extended-stay hotels in the United States. Continuing that trend, extended-stay occupancy reached one of its highest second-quarter levels in 17 years, according to The Highland Group’s 2018 Mid-Year Extended-Stay Lodging Market Report. More than 30,000 new extended-stay rooms opened over the past year but demand growth was strong enough to lift average occupancy and continue ADR growth. Extended-stay hotel RevPAR increased 4.4 percent in the second quarter of 2018 compared to the same period in 2017.
“Extended-stay hotel occupancy above its long-term average and the strongest demand growth trend since the post-recession recovery provide a solid foundation to absorb the record number of new rooms under construction,” says Mark Skinner, partner at The Highland Group.