Guest paid room revenue from guests staying seven consecutive nights or longer was $8.9 billion at traditional hotels compared to $7.5 billion at extended-stay hotels in 2024, according to “The 50 Largest Markets: ALOS, ESOC and More Report 2020-2024” and “The 50 Largest Markets: ALOS, ESOC and More Report 2015-2024” from The Highland Group and Kalibri Labs.
Corresponding room nights accommodated were 69.5 million and 72.4 million. Nationally, the share of extended-stay demand (ESOC) in extended-stay hotels is 50%. In traditional hotels, ESOC is 12% but there are 10 times as many rooms compared to extended-stay hotels.
“The 6.5 million room night increase in extended-stay demand at traditional hotels over the last five years despite extended-stay supply gaining 83,000 rooms shows substantial unmet demand for extended-stay hotels still remains,” said Mark Skinner, partner, The Highland Group.
Mark Kren, senior director, real estate investment reporting, Kalibri Labs, added, “Despite the growth in extended-stay development over the past 5 years, there is still a significant level of unaccommodated extended-stay demand in markets across the U.S. As a result, we expect continued expansion of this segment for the foreseeable future.”