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EXTENDED-STAY ROOM revenue rose 3.4 percent in the first half of 2024 and 5.1 percent in the second quarter, while occupancy decreased 0.2 percent in the first half but increased 1 percent during the second quarter, according to The Highland Group. The second quarter also saw the highest quarterly RevPAR increase in a year, an 11-point occupancy premium over all hotels and the most rooms under construction in four years. The 2024 mid-year U.S. extended-stay Lodging Market report found that all three extended-stay hotel segments reported record-high room revenues in the first half and for the second quarter. Revenue growth in extended-stay hotels is accelerating in 2024, with the second quarter's increase more than three times that of the first quarter, the report said. The 5.1 percent revenue increase in the second quarter significantly outpaces the 3 percent gain reported for the overall hotel industry by STR/CoStar. "Despite headline grabbing large increases in extended-stay rooms under construction, the annualized increase in room nights available over the next year should be well below the long-term average and the near-term risk of over supply nationally is very low," said Mark Skinner, The Highland Group's partner.

U.S. EXTENDED-STAY HOTELS posted record-high demand, ADR and RevPAR despite reporting a third consecutive occupancy decline during the third quarter of 2024, according to The Highland Group. Occupancy declines have been minimal and average occupancy remains more than 11 percentage points above the overall hotel industry year-to-date through the third quarter. The overall hotel industry saw a slightly smaller occupancy decline year-to-date through the third quarter than extended-stay hotels, according to STR/CoStar. The broader industry also posted stronger ADR growth, yielding a full percentage RevPAR gain, surpassing the 0.4 percent increase for extended-stay hotels. The 2024 Third Quarter US Extended-Stay Hotels Report found that the upper-upscale and luxury segments are helping lift overall hotel industry performance. With minimal extended-stay rooms in these categories, STR/CoStar data shows a 0.3 percent year-to-date RevPAR gain when they are excluded-closely aligning with extended-stay hotel performance.

U.S. EXTENDED-STAY HOTEL room revenues increased by $1.1 billion in 2023, similar to 2018 and 2019, though with a lower relative gain due to a larger room base, according to The Highland Group. All three extended-stay segments reported record-high room revenues in 2023, with the upscale segment leading despite previously lagging behind the pandemic recovery. The 6.1 percent increase in extended-stay hotel revenues outpaced the corresponding 5.5 percent gain reported by STR/CoStar for the overall hotel industry, the report said. However, extended-stay hotel supply experienced its smallest annual increase on record in 2023, at just 1.8 percent. Factors such as re-branding, de-flagging of non-compliant hotels, and sales to other sectors influenced supply fluctuations, a trend expected to persist into the first half of 2024, particularly with older extended-stay hotels remaining on the market. The report also highlighted a 6.6 percent increase in economy extended-stay supply, alongside modest gains in mid-price and upscale segments, primarily driven by conversions. New construction in the economy segment is estimated at around 3 percent of rooms open compared to one year ago.

U.S. EXTENDED-STAY hotels experienced their first quarterly decline in RevPAR since the first quarter of 2021, according to The Highland Group. In the first quarter, the segment saw a 1.6 percent drop in RevPAR, despite a 1.5 percent increase in revenues. Demand increased by 1.7 percent, contrasting with a 2.8 percent fall in total hotel demand when excluding upper upscale and luxury segments. STR/CoStar estimated that overall hotel RevPAR, excluding upper upscale and luxury segments, which have minimal extended-stay room supply, increased by 1.3 percent in the first quarter of 2024 compared to the same period in 2023. The Highland Group's 2024 First Quarter U.S. Extended-Stay Hotels report indicated that overall hotel RevPAR and room revenues declined by 1.1 percent and 0.9 percent year-to-date, respectively, excluding upper upscale and luxury segments.

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.

U.S. EXTENDED-STAY HOTELS saw strong performance in the fourth quarter of 2024, with RevPAR and room revenue reaching six-quarter highs, according to The Highland Group. Supply growth exceeded 3 percent for the fourth consecutive quarter, the first time in nearly three years, while demand rose 4.6 percent, the highest since the first quarter of 2021. The Highland Group's 2024 fourth quarter U.S. Extended-Stay Hotels Report found occupancy at a three-year high. "Extended-stay demand growth in the fourth quarter of 2024 was the largest quarterly increase in three years and well ahead of the accelerating gain in supply," said Mark Skinner, partner at The Highland Group.

CHOICE HOTELS INTERNATIONAL reported a 16 percent year-over-year increase in net income to $299.7 million in 2024 and a 12 percent rise in adjusted EBITDA to a record $604.1 million, exceeding its full-year guidance. The company's global system size grew 3.3 percent to 653,810 rooms, including 4.3 percent growth in its domestic upscale, extended-stay and midscale portfolio. It opened 407 hotels globally in 2024, a 21 percent increase, including its 515th extended-stay hotel in the fourth quarter, Choice said in a statement. "Choice Hotels generated another year of strong results in 2024, exceeding the top end of our earnings guidance and delivering a 4.3 percent year-over-year net increase in our more revenue-intense domestic rooms portfolio, a testament to the success of our growth strategy," said Patrick Pacious, Choice president and CEO. "In 2024, we also successfully relaunched four brands, expanded our partnerships business, increased our international footprint, achieved record organic rewards program growth, and unlocked new value through additional ancillary revenue opportunities."

U.S. EXTENDED-STAY HOTELS ended 2024 strong after a slow start, with supply, demand and room revenue growth outpacing the overall industry, according to The Highland Group. However, ADR and RevPAR growth lagged yet stayed positive, with stronger gains in the latter half. The Highland Group's report on the U.S. Extended-Stay Hotel Market 2025 found that although below the long-term average, extended-stay supply growth in 2024 was the highest since 2021 and is set to accelerate over the next one to three years. "Fundamental differences, such as far higher interest rates and real construction costs, exist between the current and most recent extended-stay hotel growth cycles, but a substantial increase in room revenues remains likely over the next one to three years," 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.

THE FIRST PROPERTY representing Wyndham Hotels & Resorts' ECHO Suites Extended Stay by Wyndham brand opened recently in Spartanburg, South Carolina. Among the attendees at the grand opening, along with executives from Wyndham and more, were the first two Indo American developers who are building upcoming ECHO hotels. Wyndham also brought on Mandeep Singh as vice president for extended stay operations, overseeing ECHO Suites and the new Waterwalk Extended Stay by Wyndham brands. Singh has a more than 20-year background in extended-stay hotels, corporate housing, serviced apartments and multi-family properties. The 124-room ECHO Spartanburg is owned by Cox Universal Group, led by Philip Cox as co-CEO and co-founder and is managed by Sandpiper Hospitality. The prototype for the all new-construction brand is designed to fit on less than two acres at 50,000 square-feet, 79 percent of which is designed for generating revenue.

U.S. EXTENDED-STAY ROOM supply increased by 3.3 percent in August, surpassing the average monthly growth over the past two years, according to The Highland Group. This rise is partly attributed to the inclusion of WaterWalk by Wyndham, a mid-price extended-stay brand, in the database starting in May after its affiliation with Wyndham. August also marked the 35th consecutive month of supply growth at 4 percent or less, with the annual supply change remaining below 2 percent for the past two years, as revealed in The Highland Group's U.S. Extended-Stay Hotels Bulletin. However, both metrics are well below the long-term average, the report found. The 11.9 percent increase in economy extended-stay supply, along with modest gains in mid-price and upscale segments, is primarily due to conversions. New construction in the economy segment is estimated at only 3 percent of rooms compared to last year, the report noted.

U.S. EXTENDED-STAY HOTELS room supply increased by 3.2 percent in May, slightly above the average monthly rise over the past two years, according to The Highland Group. May marked the 32nd consecutive month with supply growth at 4 percent or less, and the annual supply increase has been under 2 percent for two years. However, both metrics remain well below the long-term average. The 12.8 percent increase in economy extended-stay supply, along with smaller gains in mid-price and upscale segments, is primarily due to conversions, the report said. New construction in the economy segment accounts for only about 3 percent of rooms opened compared to a year ago.

MARK HOPLAMAZIAN, PRESIDENT and CEO of Hyatt Hotels Corp., will join Greg Friedman, managing principal and CEO of Peachtree Group, for a fireside chat at the Hunter Hotel Investment Conference on March 19. Hunter introduced this format last year with Anthony Capuano, CEO of Marriott International, as the featured guest. In "A Conversation with Mark Hoplamazian," he will share insights on his hospitality career, leadership approach, Hyatt's market position, company outlook and industry developments, Hunter said in a statement. U.S. extended-stay hotels finished 2024 strong after a slow start, with supply, demand and room revenue growth outpacing the industry, while ADR and RevPAR remained positive but gained momentum later in the year, according to The Highland Group.​ "At Hyatt, business is personal-relationships, trust, and a deep understanding of our guests, customers, and owners are at the heart of everything we do," said Hoplamazian. "In today's competitive landscape, hotel performance is driven by the human connections that shape our industry. That's why we collaborate closely with owners and operators like Peachtree Group to create long-term value for their investments."

U.S. HOTEL BOOKINGS for Dec. 21-25 are up 22 percent from last year, according to SiteMinder, a hotel distribution and revenue platform. The growth is driven by international bookings, which now account for 32 percent of total bookings, up from 28 percent during the same period in 2023, a more than 15 percent annual increase. The top five markets driving this growth are Canada, Germany, the UK, France, and Italy, SiteMinder data showed. "It's pleasing to see that U.S. hotels will be enjoying their share of Christmas cheer this year," said Trent Innes, SiteMinder's chief growth officer. "Increased bookings, driven by the strong return of international travel and continued confidence among domestic travelers, are also leading to longer stays and extended lead times. These positive trends present both an opportunity and a call to action for American hoteliers to provide tailored, seamless experiences this festive season, maximizing revenue while fostering loyalty and positive reviews."

PRESIDENT DONALD TRUMP laid out his plan for the nation in his first address to Congress on Tuesday since beginning his second term on Jan. 20. AAHOA was the first industry group to commend his commitment to the American Dream, even as markets reacted negatively to his rapid moves on the economy, immigration and foreign policy amid federal restructuring, strained alliances and trade uncertainty. Trump's statement, "The American Dream is unstoppable," resonates deeply with AAHOA members-entrepreneurs, small business owners, and job creators in hospitality, the association said in a statement. U.S. extended-stay hotels finished 2024 strong after a slow start, with supply, demand and room revenue growth outpacing the industry, while ADR and RevPAR remained positive but gained momentum later in the year, according to "President Trump's proposals are the tax reforms our industry needs," said Miraj Patel, AAHOA chairman. "That's why AAHOA will be in Washington, D.C., on March 11 to 12 to advocate for these critical measures. We look forward to engaging with lawmakers to ensure America's hotel owners are heard. Tax relief and pro-business policies are essential to keeping the hotel industry strong."

HOSPITALITY TECHNOLOGY FIRM OYO aims to invest $10 million to enhance G6 Hospitality's digital assets, including its website and app, targeting a quadruple increase in apps before summer. The company will use digital targeting, focusing on high-intent customers through direct partnerships with Google and Microsoft. The investment will fund data-driven digital campaigns to reach customers actively searching for accommodations with an aim toward boosting booking conversions and franchise partner value, G6 Hospitality said in a statement. "By concentrating our resources on users most likely to convert, we're optimizing our marketing spend and delivering more value to our franchise partners," said Shashank Jain, G6 Hospitality's head of online revenue. "The investment underscores G6's commitment to supporting its franchise network by driving direct bookings and reducing dependency on third-party platforms."