Skip to content

Search

Latest Stories

Report: Extended-stay led RevPAR gains in Q1

Around 603,000 extended-stay rooms were open, with a net gain of 17,588 YOY

USA extended-stay hotel in Q1 2025, showcasing RevPAR growth in economy and mid-price segments, per The Highland Group

Economy, mid-price and upscale extended-stay segments led first-quarter 2025 RevPAR growth over their hotel class counterparts, according to The Highland Group.

Extended-Stay Hotels Outperform in Q1 2025 RevPAR

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.

More for you

Peachtree Funds Rio Las Vegas Renovations | $176M CPACE Loan
Photo credit: Hyatt Hotels Corp.

Peachtree originates retroactive CPACE loan for Rio Vegas

Summary:

  • Peachtree Group originated a $176.5 million retroactive CPACE loan for a Las Vegas property.
  • The deal closed in under 60 days and ranks among the largest CPACE financings in the U.S.
  • The company promotes retroactive CPACE funding for commercial real estate development.

PEACHTREE GROUP ORIGINATED a $176.5 million retroactive Commercial Property Assessed Clean Energy loan for Dreamscape Cos.’s Rio Hotel & Casino in Las Vegas. The deal, completed in under 60 days, is its largest credit transaction and one of the largest CPACE financings in the U.S.

Keep ReadingShow less
HAMA Launches 20th Student Case Competition in USA
Photo Credit: iStock

HAMA launches 20th student case competition

Summary:

  • HAMA is accepting submissions for its 20th annual student case competition.
  • The cases reflect a scenario HAMA members faced as owner representatives.
  • Teams must submit a financial analysis, solution and executive summary.

THE HOSPITALITY ASSET Managers Association is accepting submissions for the 20th Annual HAMA Student Case Competition, in which more than 60 students analyze a management company change scenario and provide recommendations. HAMA, HotStats and Lodging Analytics Research & Consulting are providing the case, based on a scenario HAMA members faced as owner representatives.

Keep ReadingShow less
Stonebridge hotel management expansion
Photo credit: Stonebridge Cos.

Stonebridge adds Statler Dallas to managed portfolio

Summary:

  • Stonebridge Cos. added the Statler Dallas, Curio Collection by Hilton, to its managed portfolio.
  • The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group.
  • The property is near Main Street Garden Park, the Arts District and the Dallas World Aquarium.

STONEBRIDGE COS. HAS contracted to manage the Statler Dallas, Curio Collection by Hilton in Dallas to its managed portfolio. The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group, led by Mehrdad Moayedi.

Keep ReadingShow less
GSA keeps FY 2026 federal per diem lodging and meal rates flat

Federal per diem rates stay flat for FY 2026

Summary:

  • GSA will keep federal per diem rates the same for FY 2026.
  • The lodging rate stays $110 and meals allowance $68.
  • AHLA raised concerns over the impact on government travel.

THE U.S. GENERAL Services Administration will keep standard per diem rates for federal travelers at 2025 levels for fiscal year 2026. The American Hotel and Lodging Association raised concerns that the decision affects government travel, a key economic driver for the hotel industry.

Keep ReadingShow less
Comfort Hotels to Host "Waffle Lounge" Pop-Up in NYC, USA

Comfort hosting ‘Waffle Lounge’ in NYC

Summary:

  • Comfort Hotels will host the one-day Waffle Lounge in New York City on Aug. 21.
  • The Union Square event runs from 12 to 7 p.m.
  • Visitors can win a one-night stay at a participating Comfort or other Choice hotel.


CHOICE’S COMFORT HOTELS is bringing its signature breakfast item to life with the Waffle Lounge, a one-day pop-up event in New York City on Aug. 21. The event, timed to coincide with National Waffle Day on Aug. 24, highlights the brand’s role in offering guests a sense of home during their travels.

Keep ReadingShow less