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U.S. EXTENDED-STAY room supply grew by 3.5 percent in June, exceeding the average monthly increase of the past two years, according to The Highland Group. June marked the 33rd consecutive month of supply growth at 4 percent or less, with annual changes remaining below 2 percent for the past two years. However, both metrics are well below the long-term average. The growth includes the addition of Water Walk by Wyndham, a mid-priced extended-stay brand, to the database in May following its affiliation with Wyndham, the report said. The 12.8 percent increase in economy extended-stay supply, along with modest gains in midprice and upscale segments, is mainly due to conversions, The Highland Group said. New construction in the economy segment is estimated at about 3 percent of rooms open compared to a year ago. The report noted that supply change comparisons have been affected by re-branding, shifting rooms between segments, de-flagging hotels that no longer meet brand standards, and the sale of hotels to apartment companies and municipalities. The trend is likely to taper off in the second half of 2024, with the full-year increase in extended-stay supply compared to 2023 remaining well below the long-term average.

U.S. EXTENDED-STAY HOTELS closed the year strong in December, particularly at lower price points, outpacing the overall industry in supply, demand, occupancy and revenue growth, according to The Highland Group. However, slower ADR gains led to a smaller RevPAR increase than in the broader industry. The Highland Group's U.S. Extended-Stay Hotels Bulletin: December 2024 reported economy extended-stay hotels saw their third consecutive monthly RevPAR increase, with December's 5.5 percent growth, the highest since June 2022. "December was another very good month for extended-stay hotels with positive change in RevPAR in eight of the last nine months despite accelerating supply growth," said Mark Skinner, The Highland Group's partner.

OCTOBER WAS A strong month for the extended-stay segment, though the hotels lagged behind the overall hotel industry in occupancy, ADR and RevPAR gains, according to The Highland Group. Demand growth was the highest since March 2022, occupancy saw its largest increase in 21 months, RevPAR grew the most since June 2023, and room revenue growth was the strongest in 18 months. "October was a very good month for extended-stay hotels with four record-high performance metrics compared to the last 30 months," said Mark Skinner, partner at The Highland Group. Extended-stay room supply grew 3.1 percent in October, exceeding the average monthly increase over the past two years, The Highland Group reported. This rise partly reflects the addition of Water Walk by Wyndham, a mid-price extended-stay brand included in the database since May 2024 after affiliating with Wyndham.