Group items tagged

TOTAL REVENUES FROM extended-stay hotel rooms fell by 0.2 percent in March, marking the first monthly decline in over three years, according to The Highland Group. However, the revenue decline was smaller than the 1.6 percent contraction estimated by STR/CoStar for the overall hotel industry. Meanwhile, extended-stay room supply increased by 2.7 percent in March, a slight uptick compared to the average monthly growth over the past two years, the report said. This marks the 30th consecutive month of supply growth at 4 percent or less, with the annual change remaining below 2 percent for two years. However, both these figures lag behind the long-term average. The 14.2 percent rise in economy extended-stay supply, coupled with a small increase in mid-price segment rooms, primarily stems from conversions, The Highland Group said. New construction in the economy segment is estimated to account for approximately 3 percent of open rooms compared to one year ago.

U.S. EXTENDED-STAY HOTELS showed positive growth in April after a difficult first quarter, according to The Highland Group. Monthly room revenue growth was the highest in nearly a year, demand saw its strongest increase in 16 months, and ADR and RevPAR turned positive after two and four months of decline, respectively. "The performance of extended-stay hotels in April re-established the segment's long-term trend of increasing its market share of total hotel supply, demand and room revenues," said Mark Skinner, partner at The Highland Group. The extended-stay room supply grew 2.8 percent in April, slightly above the average monthly increase over the last two years, the report said. However, April marked 31 consecutive months of 4 percent or less supply growth, with annual supply change under 2 percent for two years-both metrics well below the long-term average.

U.S. EXTENDED-STAY HOTELS set new records for demand, ADR, RevPAR and room revenues in the fourth quarter of 2022, according to a report from hotel investment advisors The Highland Group. Also, the report showed rate resistance is apparent at lower price points due to recession and the economy extended-stay segment reported nine consecutive months of declining demand and three successive quarterly falls in occupancy. According to the Highland Group's "U.S. Extended-Stay Hotels: Fourth Quarter 2022" report, mid-price extended-stay hotels reported their second consecutive quarterly decline in occupancy in fourth quarter. Similar occupancy declines occurred for about two years starting in mid-2015 before ADR growth moderated and occupancy recovered. Extended-stay hotel supply growth was the lowest since 2013 during the quarter, below its long-term historical average for 20 consecutive quarters. The last time extended-stay supply growth was consistently near its current level was from 2010 fourth quarter through third quarter of 2014. "Extended-stay hotel RevPAR was more than 12 percent higher than in fourth quarter of 2019. There were 567,770 extended-stay hotel rooms open at the end of the quarter. Excluding 2020, the 6,481 net gain in rooms open over the last year was the lowest annual increase since 2012. Room nights available increased 1.2 percent over the last year which was the smallest annual gain in supply for nine years," the report said. "Fractional net economy and upscale segment supply gains compared to 2021 are largely due to re-branding moving rooms between segments in our database, de-flagging of hotels which no longer meet brand standards, as well as the sales of some hotels to multi-family apartment companies and municipalities."

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.

EXTENDED-STAY HOTELS DISPLAYED varied performance in December compared to the overall hotel industry, with supply, demand, and room revenues showing relative gains, according to The Highland Group. Occupancy experienced a milder decline than the broader hotel sector while low ADR growth and an unexpected decline in economy extended-stay RevPAR resulted in a total extended-stay hotel RevPAR decrease versus a slight RevPAR increase in the overall hotel industry. The 2.4 percent net increase in extended-stay room supply in December represents a modest rise compared to the average over the past 18 months and a slight gain over the most recent three months, the report said. Supply shifts overview December marked nine consecutive quarters with 4 percent or less supply growth, significantly below the long-term average, according to The Highland report. The 13 percent surge in economy extended-stay supply and the reduction in mid-price segment rooms are primarily attributed to conversions, with new construction in the economy segment accounting for approximately 3 percent of rooms compared to a year ago.

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.

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.

EXTENDED-STAY ROOM SUPPLY grew 3.1 percent in July, outpacing the average monthly increase over the past two years, according to The Highland Group. The rise is partly due to WaterWalk by Wyndham, a mid-priced extended-stay brand added to the database in May 2024 after affiliating with Wyndham. July marked 34 consecutive months of supply growth at 4 percent or less, with annual supply changes under 2 percent for two years-both well below the long-term average, the report said. "July was an exceptionally good month for extended-stay hotels which outperformed the overall industry and the economy segment reported a monthly RevPar gain for the first time in more than one year," said Mark Skinner, The Highland Group's partner. The U.S. Extended-Stay Hotels Bulletin for July 2024 reported a 13.9 percent rise in economy extended-stay supply, with smaller gains in mid-price and upscale segments, largely due to conversions. New construction in the economy segment accounts for about 3 percent of rooms open compared to last year.

U.S. EXTENDED-STAY HOTELS started 2025 with strong January growth, particularly at lower price points, according to The Highland Group. Supply and demand grew much faster than the overall industry, but other performance metrics lagged. The U.S. Extended-Stay Hotels Bulletin: January 2025 reported stronger ADR and the most RevPAR gains for extended-stay hotels compared to corresponding classes. "January was another very good month for extended-stay hotels with positive change in RevPAR in nine of the last ten months and the economy segment continuing to lead RevPAR growth," said Mark Skinner, The Highland Group's partner.

THE BOUTIQUE HOTEL segment outperformed many comparable U.S. hotel classes in 2024, driven by strong market appeal and pricing power, according to The Highland Group. With demand growth tracking closely with supply over the past seven years, the segment shows long-term stability. Based on data from the Boutique Hotel Report 2025, boutique hotels-including lifestyle properties, soft brand collections and indie boutiques-have emerged as strong alternatives to traditional hotels. "With an intent to heighten the travel experience, boutique hotels intrigue through design, storyline, food and beverage, and unique amenities," said Kim Bardoul, The Highland Group's partner. "The segment consistently performs well with solid occupancies and, in many cases, a premium in rate over traditional hotel types."

BOUTIQUE HOTELS GENERATED more annual RevPAR than traditional hotels in the U.S. last year, according to a report from consulting agency The Highland Group. Hotels focused on experiential stay, exceptional design and amenities also attracted a rate premium, the report said. Boutique hotels are classified into independent boutique, lifestyle hotels and soft brand collections. The Boutique Hotel Report 2022 has said that upper midscale, upscale and luxury soft brand collections recovered strongly in 2021 in performance metrics against their US upscale counterparts, while the upper upscale class was ahead in rate recovery and lagged in occupancy. According to the report, lifestyle upper upscale and luxury hotels recovered at parity with their counterparts, while upper midscale and upscale lifestyle hotels reported slower recovery in both occupancy and average rate. "Upper midscale and upscale independent boutique hotels in urban locations recovered at a stronger pace than all U.S. hotel in urban locations in both performance metrics.

EXTENDED-STAY HOTEL room supply in the 100 largest metropolitan statistical areas in the U.S. grew 2.5 percent in 2022 compared to 2021, its smallest increase in several years, according to a new report from The Highland Group. The survey, which researched supply, demand, revenues and new construction of extended-stay hotels, said the outcome in 2022 was about half the net supply gain reported in 2021. According to the report, the lengthening hotel development timeline, fewer construction starts, disenfranchising hotels that no longer meet brand standards, conversions to apartments and some municipalities acquiring extended-stay hotels for housing have resulted in the muted growth. While there was a sharp decline in reported extended-stay rooms under construction last year compared to 2021, construction starts increased 6 percent over the last 12 months. "However, they remain low compared to the pre-pandemic period, the report noted. RevPAR growth in 2022 strongly favored ADR as opposed to occupancy gains in 2021. "Consequently, more than 40 MSAs reported lower average occupancy in 2022 than during the previous year. However, only a dozen MSAs have not yet recovered RevPAR back to its nominal 2019 value compared to about half the MSAs last year," it showed.

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.

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."

DEMAND FOR U.S. extended-stay hotels in the fourth quarter of 2021 was more than five times greater than supply, resulting in overall occupancy just below its 2019 peak, according to the Highland Group. December's monthly report from the group also showed the segment to be firmly in recovery. According to the research consulting firm's "U.S. Extended-stay Hotels: Fourth quarter 2021" report, the bottom up recovery continues with economy and mid-price extended-stay hotels in the fourth quarter posting record nominal average rate and RevPAR. Demand in the fourth quarter is at a record high and room revenues are almost 97 percent of their nominal high reached during the same period in 2019, the report said. Occupancy and ADR remain 4 to 5 percentage points off previous high levels but should pick up in the near term as the demand change was six times the corresponding change in supply, it added.

MOST ECONOMY AND MID-PRICE extended-stay hotels' performance in September was down compared to August, according to a report from hotel investment advisors The Highland Group. However, the bottom-up recovery and room supply distribution geographically are hindering the upscale segment's recovery. Relative to other classes of hotels, mid-price extended-stay hotels recorded the largest gain in September, the U.S. Extended-Stay Hotels Bulletin: September 2021 report said. Occupancy, ADR and RevPAR indices for upscale extended-stay hotels were about the same in September as in August but the decline in absolute ADR resulted in the segment's revenue recovery falling below 95 percent. Economy and mid-price segments both reported about a three-point gain in ADR recovery index in September compared to the month before. The upscale segment's ADR remained unchanged, the report said. "The mid-price extended-stay segment's gains in both ADR and occupancy pushed it slightly ahead of the upscale segment in terms of RevPAR growth. Because the overall hotel industry lost far more RevPAR than extended-stay hotels, its RevPAR growth in September 2021 compared to last year was 85 percent more than extended-stay hotels," the report added.

AS THE FIRST half of 2022 ended, U.S. hotels overall were catching up with extended-stay hotels in terms of recovery, according to a report from The Highland Group. RevPAR recovery, for example, was almost the same for hotels overall and extended-stay. Also, the report found that new construction fell to an 8-year low over the first two quarters of the year, according to the report. For the first time in 18 months, the overall hotel industry's second quarter RevPAR recovery index surpassed 100 percent, matching the extended-stay hotel's 109 percent index. Economy and mid-price extended-stay hotels are still ahead of the overall recovery as well as upscale extended-stay hotels. The gap between the segments is expected to narrow over the near term.

THE REVPAR RECOVERY of U.S. extended-stay hotels remain unchanged in August compared to July, according to consulting firm The Highland Group. However, ADR growth for mid-price and upscale segments decreased for the fifth consecutive month but remained higher than any other period before 2021. STR said that hotel occupancy gained 5.3 percent in August 2022 compared to same period last year, decreasing extended-stay hotel's occupancy premium to 12.6 percentage points compared to more than 14 points in August 2021. But the premium remains well within its long-term average range. Economy and mid-price extended-stay segments reported much faster ADR growth compared to corresponding segments during the month, according to the US Extended-Stay Hotels Bulletin: August 2022. The economy segment continued leading the RevPAR recovery compared to 2019, but demand declined 1.9 percent for the fifth consecutive month compared to August 2021 due to strong increases in ADR.

U.S. EXTENDED-STAY HOTELS continued their good performance in all measures of performance in April compared to 2019 and higher than in March, according to hotel investment advisors The Highland Group. Due to seasonal increases in leisure travel, the upscale extended-stay hotels benefited the most from the greatest lift in recovery indices except ADR. Meanwhile, mid-price extended-stay hotels achieved the strongest monthly gains in ADR and room revenues compared to April 2021, the U.S. Extended-Stay Hotels Bulletin: April 2022 report said. Economy extended-stay hotels continued the lead the recovery compared to 2019, but, demand declined 1.4 percent in April this year compared to April 2021, mainly due to strong increases in ADR over several months. "The 1.8 percent increase in extended-stay room supply in April is the first month supply growth reported below 2 percent since 2013 and the seventh consecutive month of 4 percent or lower supply growth. It is likely that the supply increases should be well below pre-pandemic levels during the near term," the report said.

U.S. EXTENDED-STAY hotels registered an increase in occupancy and ADR in the first quarter of this year, according to hotel investment advisors The Highland Group. Record high demand, low supply growth and rising overall ADR are driving the strong performance. Economy and mid-price extended-stay hotels recovered RevPAR to their nominal 2019 values and the former is leading the recovery, the U.S. Extended-stay Hotels: First Quarter 2022 report said. However, the upscale extended-stay segment is lagging the overall recovery but reporting slightly better recovery performance as demand is at an all-time high, the report added. "There were 564,257 extended-stay hotel rooms open at the end of the first quarter. However, the 17,165 net gain in rooms open over the last year was the lowest annual increase since 2014, excluding 2020. Room nights available increased 3.1 percent over 2021, but supply growth dropped 50 percent from 2016 across all three segments," the report said.