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 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.