From 2019 to 2023, economy and mid-price extended-stay hotels made considerable gains in RevPAR relative to corresponding classes of all hotels. Largely because of a comparatively high concentration of rooms in urban markets, upscale extended-stay hotels have seen RevPAR decline slightly relative to all upscale class hotels. However, the gap is expected to narrow as urban markets make a full recovery.
Because of limited growth and assuming the overall hotel industry does not endure a correction, according to the report, extended-stay hotels should set more new performance records during the near term at least.
First quarter highlights for extended-stay hotels included:
Mid-price occupancy the highest since 2001;
Economy segment occupancy the lowest in 13 years;
Smallest supply growth in a decade;
Average daily rate (ADR) up 11% over the first quarter of 2022;
Room revenues up 14% over last year;
Average occupancy 13 points higher than all hotels.
Image: Courtesy of Marriott
