November was one of the best months in 2024 for extended stay hotels, according to a report from The Highland Group, a consultancy. RevPAR (revenue per available room) increases were among the strongest in more than a year. The month’s performance for economy extended stay hotels was especially good, with monthly RevPAR growth the highest since August 2022.

Mark Skinner, partner at The Highland Group, said that “November was another very good month for extended stay hotels, with demand growth again exceeding the accelerating increase in supply.”

Total extended stay demand gained 4.9% in November. It was one of the largest monthly increases in 2024 and represented a positive change in demand in 23 of the last 24 months. Comparatively, STR/CoStar reported that all hotel demand increased 2.8% in November.

The 1.5% increase in extended stay hotel occupancy in November represented occupancy growth in seven of the last eight months. However, it was slightly less than the 1.7% increase STR/CoStar estimated for all hotels. Extended stay hotel occupancy in November was 13.9 percentage points higher than the total hotel industry, which is consistent with the historical long-term average occupancy premium.

Following monthly declines in February and March, which were the first in three years, extended stay hotel average daily rate (ADR) increased for the eighth successive month in November, and the gain was slightly ahead of the 0.9% increase STR/CoStar reported for the overall hotel industry. Compared with corresponding classes of all hotels, all extended stay hotel segments posted faster ADR growth in November.

Extended stay hotels’ 2.7% RevPAR increase in November was the second largest in the last 17 months and the same as the gain in total hotel industry RevPAR as estimated by STR/CoStar. Economy extended stay hotels reported the highest monthly increase in RevPAR in more than two years.

Image: Marriott