NATIONAL REPORT—According to The Highland Group’s “2019 Third Quarter U.S. Extended-Stay Lodging Market Report,” extended-stay hotel rooms that are open have topped 500,000, following record supply growth.
The 35,404 net change in extended-stay rooms open over the last 12 months was the highest ever reported and the growth in supply from new-construction was the fastest in a decade, according to the findings. Despite record supply growth, demand kept pace and third quarter occupancy stayed above 80% for the sixth consecutive year.
All extended-stay segments continue to report positive change in quarterly and year-to-date ADR and RevPAR despite the slowdown in the overall hotel industry.
“The extended-stay hotel segment is in great shape to perform well during the cyclical slowdown, which is widely forecast over the near term,” said Mark Skinner, partner at The Highland Group.