Extended stay hotels performed “largely better” than the industry as a whole in October, especially at economy price levels, according to the latest report from The Highland Group, a consultancy.

Economy extended stay hotels have incurred far lower declines in revenue per available room (RevPAR} than all economy class properties for five straight months, according to the report, and the contraction in mid-price extended stay hotel RevPAR has been half the loss reported for all mid-price hotels over the last two months. Upscale extended stay hotels’ resilience to the downturn is more variable, with deeper RevPAR loss compared with all upscale hotels in October, but even that category saw relatively low declines in three of the last five months.

 Mark Skinner, partner at The Highland Group, said, “Extended stay hotels are expected to see negative change in RevPAR for the rest of 2025, but the decline should not be as large as corresponding classes of all hotels especially at lower price points.”

The 1.9% decrease in extended stay hotel occupancy in October was the 10th consecutive monthly decline. October’s occupancy contraction was less than the 2.6% occupancy loss STR/CoStar estimated for all hotels. Extended-stay hotel occupancy in October was 10.7 percentage points higher than the total hotel industry, which is within the long-term average range.

Extended stay hotel average daily rate (ADR) in October declined for the seventh consecutive month. The economy extended stay segment’s decrease in ADR was the third monthly contraction since May 2024, but it compared very favorably with the loss for total economy class hotels as reported by STR/CoStar. The positive ADR change for mid-price extended stay hotels also fared better than all mid-price class hotels.