Around 603,000 extended-stay rooms were open, with a net gain of 17,588 YOY
Economy, mid-price and upscale extended-stay segments led first-quarter 2025 RevPAR growth over their hotel class counterparts, according to The Highland Group.
Vishnu Rageev R is a journalist with more than 15 years of experience in business journalism. Before joining Asian Media Group in 2022, he worked with BW Businessworld, IMAGES Group, exchange4media Group, DC Books, and Dhanam Publications in India. His coverage includes industry analysis, market trends and corporate developments, focusing on retail, real estate and hospitality. As a senior journalist with Asian Hospitality, he covers the U.S. hospitality industry. He is from Kerala, a state in South India.
ECONOMY, MID-PRICE AND UPSCALE extended-stay segments outperformed their corresponding hotel classes in first-quarter 2025 RevPAR growth compared to the same period in 2024, according to The Highland Group. However, occupancy declined in the economy and mid-price segments, bringing overall extended-stay occupancy down to 70.9 percent—the lowest first-quarter level since 2010, excluding the pandemic years of 2020 and 2021.
The 2025 First Quarter U.S. Extended-Stay Hotels Report found 602,980 extended-stay hotel rooms open at the end of the quarter, with a net gain of 17,588 rooms over the past year—the largest annual increase in three years.
“The positive change in extended-stay hotel RevPAR decelerated during the first quarter of 2025, but when compared directly to corresponding classes of all hotels, all three extended-stay segments reported higher RevPAR growth from the first quarter of 2024 to the first quarter of 2025,” said Mark Skinner, The Highland Group’s partner.
Economy extended-stay hotels reported record-high demand in the first quarter of 2025, with total extended-stay demand increasing 1.1 percent (reflecting the extra day in the 2024 leap year) over the past 12 months. This contrasts with no change in demand for the total hotel industry, as reported by STR/CoStar for the same period.
The 2.7 percent gain in extended-stay room revenues in the first quarter was the lowest in the past year but higher than the 1.5 percent increase in the first quarter of 2024, which included an extra day. STR/CoStar reports total hotel industry room revenues grew 1.7 percent in the first quarter of 2025, but only 0.7 percent when excluding the upper-upscale and luxury segments, which have minimal extended-stay inventory.
Key metrics for Extended-Stay Hotels in the USA
At 70.9 percent, total extended-stay hotel occupancy in the first quarter of 2025 was the lowest since the pandemic-impacted years of 2020 and 2021, and the lowest for a first quarter since 2010.
Economy and mid-price extended-stay segments drove the 1.6 percent overall ADR growth in the first quarter, while STR/CoStar reported a 1.7 percent ADR increase for the total hotel industry.
The quarterly RevPAR change mirrored ADR, with economy and mid-price segments driving the increase and influencing overall extended-stay RevPAR change from the first quarter of 2024 to the first quarter of 2025. The total extended-stay RevPAR gain in the first quarter of 2025 was lower than the segment increases due to the economy segment's larger share of extended-stay room supply compared to the first quarter of 2024.
Extended-stay hotels’ occupancy premium over the overall hotel industry averaged 12 percentage points in 2018 and 2019, typical over the past 25 years. The premium tends to rise during downturns, peaking at 20 percent in the first quarter of 2021 during the pandemic. In the first quarter of 2025, the occupancy premium was 12.3 percentage points.
From 2017 to 2019, extended-stay hotels’ ADR grew slightly faster than the overall hotel industry. Growth accelerated in 2021, with the ratio peaking at 83 percent before declining to 77 percent in the first quarter of 2022, as the overall hotel industry recovered more quickly due to deeper pandemic losses. The first-quarter ADR ratio in 2025 was essentially unchanged from 2024.
Relative RevPAR followed a similar trajectory to ADR, with gains from 2017 to 2019 and a peak ratio of 119 percent in the first quarter of 2021. As the overall hotel industry recovered more quickly, extended-stay hotels’ RevPAR ratio declined to 91 percent in the first quarter of 2025, two to three percentage points lower than the 2018 to 2019 period.
The Highland Group reported U.S. extended-stay hotels outperformed the overall industry in March across all key metrics except occupancy, where their long-term premium remained steady.
OYO added more than 150 U.S. hotels in early 2025 and plans 150 more by year-end.
Ten additions have more than 100 rooms, reflecting a focus on high-inventory properties.
It is targeting urban and suburban markets in the Sun Belt and Great Lakes regions.
HOSPITALITY TECHNOLOGY COMPANY OYO added more than 150 hotels to its U.S. portfolio in the first half of 2025 and plans to add 150 more by year-end. The additions span Texas, Virginia, Georgia, Mississippi, California, Michigan and Illinois.
The company is focusing on high-inventory properties and has added 10 with more than 100 rooms, OYO U.S. said in a statement.
“2025 is shaping up to be a busy year for all of us at OYO,” said Nikhil Heda, head of development, OYO U.S. “We’re helping hotel owners drive revenue and improve operations through our technology. Our growing portfolio gives travelers more options, and momentum on our direct channels shows OYO is becoming a trusted brand for new and returning guests.”
Recent additions include the 400-room Palette Sunset Waves Resort in Myrtle Beach, the 130-room Capital O Kings Inn in Memphis, the 130-room Travellers Inn by OYO in Douglas, Georgia, and the 140-room Jackson Hotel and Convention Center in Jackson, Tennessee. All were previously independent hotels.
The company is exploring urban and suburban markets across the Sun Belt and Great Lakes regions, targeting areas with high demand and growth potential, the statement said.
OYO CEO Ritesh Agarwal, who also chairs G6 Hospitality, the parent of Motel 6 and Studio 6, recently launched a contest to rename Oravel Stays, offering a $3,500 prize.
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Choice launched two campaigns to boost bookings across its four extended-stay brands.
Based on guest feedback, the campaigns focus on efficiency, cleanliness, value and flexibility.
They will run through 2026 across social media, Connected TV, digital display and online video.
CHOICE HOTELS INTERNATIONAL launched two marketing campaigns to increase brand awareness and bookings across its four extended-stay brands. The "Stay in Your Rhythm" campaign promotes all four brands by showing how guests can maintain daily routines, while "The WoodSpring Way" highlights the service WoodSpring Suites staff provide.
The company has more than 550 extended-stay locations open, 51 under construction and more than 350 in the pipeline under Everhome Suites, MainStay Suites, Suburban Studios and WoodSpring Suites, Choice said in a statement.
"As leaders in the extended stay segment, Choice Hotels has long understood that this category is unlike any other in the hospitality industry, defined by distinct guest expectations that we continuously strive to exceed," said Noha Abdalla, Choice’s chief marketing officer. "These first-of-their-kind campaigns reflect our deep understanding of why people stay longer — from work assignments and relocations to life transitions and personal journeys. No matter the reason, we know our guests aren't looking to escape their routines; they're looking to maintain them. That's why we take pride in our unique position to offer what matters most: consistency, comfort and connection."
Both campaigns are based on research and guest feedback showing travelers prioritize efficiency, cleanliness, value and flexibility, the statement said. They will run through the rest of the year and into 2026 across paid social media, Connected TV, digital display and online video.
The "Stay in Your Rhythm" campaign shows how Choice's extended-stay brands support routines with in-room kitchens, laundry, fitness centers and pet-friendly options, Choice said. It focuses on daily habits like making coffee, cooking, walking the dog, or exercising.
"The WoodSpring Way" highlights how property teams support guests by providing home-like conveniences, the company said. General managers in Chicago, Denver, Atlanta and Orlando are featured for creating a consistent guest experience and welcoming all guests, including pets.
"We've designed our extended stay properties to ensure we provide guests with everything they need when circumstances take them away from home for weeks at a time," said Matt McElhare, Choice's vice president for extended stay brands. "Through the launch of our campaigns, we aim to educate the growing population of extended stay travelers on how our brands offer the best value in the industry, while also highlighting the culture of our flagship brand, WoodSpring Suites, which has consistently set the standard for guest satisfaction in the segment. We're especially thankful to our owners and management company teams who help build and sustain this culture on property, consistently delivering a great guest experience."
U.S. hotels increased background checks by 36 percent in early 2025.
The trend follows President Trump’s immigration policies impacting seasonal labor.
Immigrants making up a third of the travel workforce.
U.S. HOTEL HIRING managers requested 36 percent more background checks in the first half of 2025 compared with the same period last year, according to Hireology. The move follows President Donald Trump’s immigration crackdown and proposed visa fee hikes affecting seasonal labor.
Trump sought to end temporary legal status for hundreds of thousands of migrants in the U.S.and vowed to deport millions of undocumented people in the country, Reuters reported. Hireology said in a blog post that background checks were a cornerstone of any effective hiring strategy.
"They ensure that candidates meet the qualifications for the role, protect your organization from potential risks and help you build a safe, compliant, and high-performing workforce,” the hiring platform said. “Negligent hiring can have serious consequences, from legal liabilities to reputational damage.”
At least one-third of workers employed or supported by the U.S. travel industry are immigrants, according to the U.S. Travel Association. Meanwhile, hotels directly employed more than 2.15 million people in 2024, according to the American Hotel and Lodging Association.
Total hires across 1,000 hotels rose by 22 percent, reaching more than 8,000 workers, Reuters reported, citing Hireology report.
Increases in the most in-demand roles such as front desk associates, housekeepers and cooks were flat or grew slightly year-over-year. About 34 percent of housekeepers and 24 percent of cooks are foreign-born, according to 2023 data from the U.S. Census Bureau and Tourism Economics.
A $250 Visa Integrity Fee in Trump’s Big Beautiful Bill is drawing criticism from groups that rely on J-1 and other seasonal worker visas, who warn the sometimes-refundable charge could shrink the summer workforce supporting U.S. beach towns and resorts.
Amex GBT and Chooose are launching a hotel emissions tracking tool to calculate users’ Hotel Carbon Measurement Initiative reporting requirements.
Emissions data in Amex GBT’s Global Trip Record and Data Lake ensures consistency across travel programs.
In January, Finland-based Bob W found hotel carbon emissions are five times higher than HCMI estimates.
SOFTWARE FIRMS AMERICAN Express Global Business Travel and Chooose are launching a hotel emissions tracking tool in the third quarter of 2025. The new tool, integrated into Amex GBT’s platforms, will provide standardized hotel emissions data to calculate users’ Hotel Carbon Measurement Initiative reporting requirements.
Chooose, which allows airline passengers to offset flight emissions, uses a hotel emissions calculation methodology aligned with HCMI reporting requirements, according to the companies. Clients can select emissions factor providers, including the UK Department for Business, Energy & Industrial Strategy and Greenview, both aligned with the same methodology, Amex GBT said in a statement.
“This is about giving our clients better data, better tools and better decision-making power,” said John Sturino, Amex GBT’s senior vice president for product and engineering. “We’ve engineered this capability to deliver more granular emissions data, deeply integrated into our platforms, so customers can access the insights they need, where they need them.”
Emissions data stored in Amex GBT’s systems include the Global Trip Record and Data Lake, the statement said. It complements traveler-facing hotel sustainability tools at point of sale, such as eco badges and filters for hotels with EV charging. The tool also supports Amex GBT’s Consulting and Meetings & Events teams with reporting capabilities.
Nora Lovell Marchant, Amex GBT’s vice president of global sustainability, said more accurate data can help companies assess the environmental impact of their travel programs.
“It’s part of our broader effort to provide the tools and insights that support more sustainable travel choices,” she said.
HCMI is a free tool created by the World Sustainable Hospitality Alliance for hotels to calculate the carbon footprint of hotel stays and meetings in their properties.
In January, Finland-based hospitality operator Bob W found that hotel carbon emissions are five times higher than estimates from frameworks such as HCMI. Bob W and UK-based consultancy Furthr developed the Lodging Emissions & Guest-night Impact Tracker to provide a broader view of the sector’s environmental impact.
Marriott International completed its $355 million acquisition of citizenM, a Netherlands-based select-service brand.
Integration into Marriott’s systems is underway.
Founded in 2008 by Rattan Chadha, citizenM targets travelers seeking smart room design, shared spaces.
MARRIOTT INTERNATIONAL COMPLETED its $355 million acquisition of citizenM, a Netherlands-based select-service brand founded by Rattan Chadha, as announced in April. CitizenM’s portfolio includes 37 hotels with 8,789 rooms across more than 20 cities in the U.S., Europe and Asia Pacific.
Its pipeline of two hotels totaling more than 300 rooms is expected to be added to Marriott’s portfolio, the company said in a statement.
“As travelers continue to seek lodging that blends technology with service, citizenM is a strong addition to our portfolio,” said Anthony Capuano, Marriott’s president and CEO. “Marriott has a track record of growing select-service lifestyle brands, including AC, Moxy and Aloft and we look forward to expanding citizenM’s global reach with our guests and Marriott Bonvoy members.”
With the acquisition complete, Marriott will begin integrating citizenM into its systems, the company said. Until integration is finished later this year, citizenM properties will remain bookable through citizenM’s digital channels. Subscription program members will continue to receive benefits, with more details to follow after integration.
Once integrated, citizenM will join the Marriott Bonvoy loyalty program.
Founded by Chadha in 2008, citizenM targets travelers seeking smart room design, common areas with artwork and local artifacts, shared living rooms, meeting spaces, grab-and-go F&B and rooftop decks.