ATLANTA—According to The Highland Group’s “2020 U.S. Extended-Stay Lodging Market Report,” occupancy in the segment is at a 19-year high amid the biggest gain in rooms in 20 years.
Despite 32,000 new rooms over the last year, extended-stay annual occupancy stayed above 76% for the fifth time in the last six years. It was the joint highest annual occupancy since 2000.
Even with near record high occupancy and rapid supply absorption, ADR and RevPAR growth continued to decelerate in 2019, although both reported positive annual change. Extended-stay rooms under construction steadied at 47,000.
“Fundamentally, the extended-stay segment is very well placed to handle the expected slowdown in RevPAR growth and the potential impacts of the coronavirus,” said Mark Skinner, partner at The Highland Group.