ATLANTA—The Highland Group has released its “U.S. Extended-Stay Lodging: 100 Largest Markets 2018 Report.” According to the findings, the U.S. national average extended-stay hotel RevPAR increased 4.7% in 2017 compared to 2016, but 24 of the country’s largest metropolitan areas reported declining RevPAR. Conversely, one-third of the markets recorded RevPAR growth above the national average and seven saw double-digit gains.
Nationally, extended-stay hotel occupancy increased in 2017, but growth in new room supply contributed to occupancy declines in 44 of the nation’s largest metro areas. More than half of the 100 largest MSAs are expecting at least 10% supply growth in 2018.
“The fundamentals for continued demand growth are solid in most markets. However, the list of MSAs with lower extended-stay hotel RevPAR in 2018 compared to 2017 is expected to be a lot longer than the 24 reporting it last year,” said Mark Skinner, partner at The Highland Group.
