The November recovery indices for the entire extended stay hotel segment exceeded 100% for the first time in 2021, according to The Highland Group, a consultancy. The indices include occupancy, average daily rate (ADR), revenue per available room (RevPAR) and revenue. The economy and mid-price segments are still leading the recovery by a wide margin. However, the lagging upscale segment reported considerable improvement compared with October, and its monthly room revenues were within 2% of November 2019. Mark Skinner, partner at The Highland Group, said the very strong November performance metrics plus more evidence of declining supply growth “further improves the near-term outlook for extended-stay hotels.” Economy extended-stay hotels continued to lead the RevPAR (revenue per available room) recovery with a 22% gain compared with November RevPAR two years ago. The 4% increase in extended-stay room supply in November tied with October as the lowest monthly gain this year. The impact to supply growth from reopening hotels closed during the pandemic is effectively over. Early indications, according to The Highlanhd Group. are that mid-price and upscale supply growth should be well below pre-pandemic levels during the near term.

Image: Residence Inn, Chicago