A record-breaking third quarter amid a declining rate of supply growth in the extended stay hotel category signals further improvement in the near term for the segment, according to The Highland Group, a hospitality industry consultancy. With the impact of closing and reopening extended stay hotels during the pandemic effectively over, extended stay room supply gained 4% in October. The fall in supply growth is concurrent with extended stay hotel demand exceeding the highest levels ever reported. Following a record-setting third quarter in 2021, most recovery indices declined slightly in October 2021 compared with September. Economy extended stay hotels continue to lead the revenue per available room (RevPAR) recovery with a 20% gain compared with October RevPAR two years ago. The mid-price segment has more than recovered RevPAR every month since July. Upscale extended stay hotels continue to lag primarily due to the relatively high concentration of rooms in urban locations.