After lagging lower-priced categories, upscale extended stay hotels are performing much more strongly, according to the latest research from The Highland Group, a consultancy. According to the research, the upscale segment’s 80.5% average occupancy in June was the first time it has exceeded occupancy in the mid-price extended stay category since the onset of the pandemic. June was also the third consecutive month that the upscale extended-stay hotel average rate was higher than its corresponding nominal value in 2019. Mark Skinner, partner at The Highland Group, said the summer travel season “is accelerating the upscale extended-stay hotel segment’s full recovery back to 2019.” Upscale extended-stay hotels benefited most from the summer travel surge with its revenue per available room (RevPAR) recovery index in June gaining about 5% compared with May. The 1.4% increase in overall extended-stay room supply in June was the third successive month that supply growth was below 2% and the ninth consecutive month of 4% or lower supply growth. June’s supply change, said the report, establishes that extended-stay hotel supply increases should be well below pre-pandemic levels during the near term.