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EXTENDED-STAY ROOM revenues in traditional hotels outperformed those in extended-stay hotels by 21 percent, indicating potential for further development in the extended-stay sector, according to consulting firm The Highland Group and Kalibri Labs. For the 12 months ending June 2023, guest-paid room revenue for stays of seven consecutive nights or more totaled $8.97 billion in traditional hotels, compared to $7.39 billion in extended-stay hotels. "Traditional hotels are still accommodating more extended-stay demand than extended-stay hotels despite the latter's substantial gains in market share over the last 25 years," said Mark Skinner, partner at The Highland Group. Accommodated room nights tallied 74.3 million and 72.2 million, respectively. Nationally, extended-stay demand (ESOC) constitutes 53 percent of extended-stay hotels. In traditional hotels, ESOC is 13 percent, yet the room count is tenfold compared to extended-stay establishments, the report said.

COMMERCIAL REAL ESTATE direct lender Stonehill recently originated a $79.8 million, three-year, floating-rate bridge loan for New York-based Churchwick Partners for the acquisition of a 12-property, extended-stay hotel portfolio. The deal was premised on the strong performance by extended-stay hotels even during the pandemic. Stonehill is an affiliate of Peachtree Hotel Group, led by Jatin Desai and Mitul Patel as managing principals. The deal includes 1,432 rooms in nine states, mostly Sonesta Hotels brands. "Our sponsors benefit from experienced real estate lenders able to originate and close complex transactions," said Nick Baer, Stonehill's vice president for business development. "With funding options from traditional lenders limited for hotels and other commercial real estate properties, we are pleased to provide Churchwick Partners with the lending solution, financial capacity and hospitality expertise to close this transaction in a challenging capital market environment."