- Occupancy reached 12.3 points above comparable hotels.
- Room revenue rose 7.7 percent, outpacing industry’s 3.1 percent.
- Demand grew 5.3 percent, exceeding supply growth.
EXTENDED-STAY HOTELS widened their occupancy lead over comparable hotels to 12.3 percentage points in August, up from 11.9 points a year earlier, according to The Highland Group. Room revenue rose 7.7 percent, compared with 3.1 percent for the overall U.S. hotel industry and demand outpaced supply for the seventh straight month.
The Highland Group said extended-stay hotels posted higher growth than comparable class hotels across all performance metrics. Extended-stay occupancy reached 77.8 percent in August, compared with 65.5 percent for comparable hotels. That group includes all hotels except luxury and upper upscale, which have negligible extended-stay supply.
The gap is high for a summer month, when the broader industry usually gains more from seasonal travel, according to the company’s US Extended-Stay Hotels Bulletin: August 2026.
“With seven consecutive months of demand growth exceeding the increase in supply and stronger performance than comparable class hotels in August, the outlook for more extended-stay hotel RevPar gains is very promising,” said Mark Skinner, partner at The Highland Group.
Revenue and performance
Extended-stay revenue growth surpassed all other comparison groups.Data source: The Highland Group; Graphic credit: Asian Hospitality
Extended-stay occupancy rose 0.7 percent from a year earlier, Highland Group said. ADR increased 2.3 percent to $122.17 and RevPAR gained 3 percent to $95.11. Each metric posted its seventh consecutive monthly gain.
STR/CoStar reported a 1.1 percent RevPAR gain for comparable hotels. Extended-stay RevPAR beat the comparable class in every segment. It rose 1.4 percent in economy, compared with a 1.1 percent decline for economy hotels. Mid-price extended-stay RevPAR gained 3 percent, compared with 0.2 percent for midscale hotels. Upscale rose 4 percent, compared with 3 percent. Extended-stay ADR growth also topped the corresponding class in every segment.
Extended-stay revenue growth outpaced every comparison group. Revenue for all hotels excluding luxury and upper upscale rose 2.1 percent.
STR/CoStar reported that economy hotel revenue fell 2 percent, midscale rose 1.7 percent and upscale gained 4.9 percent. Extended-stay revenue rose 6.1 percent in economy, 9.6 percent in mid-price and 6.6 percent in upscale.
Supply growth stays below average
Supply grew 2.1 percent to 4 percent annually over the past three years.Data source: The Highland Group; Graphic credit: Asian Hospitality
Extended-stay demand grew 5.3 percent in August, topping its 5 percent long-term annual average for the seventh straight month. Demand at comparable hotels rose 1 percent, STR/CoStar reported. Adjusted for the leap day in February 2024, extended-stay demand has risen in 44 of the past 45 months.
Available room nights increased 4.5 percent from a year earlier. Supply growth topped 5 percent in the second half of 2025 but has stayed below that level every month this year. It averaged 4.6 percent over the past eight months. Calendar-year supply growth ranged from 2.1 percent to 4 percent over the past three years. Highland Group said both measures are below the long-term annual average.
Fewer extended-stay rooms are now under construction. Highland Group expects total supply growth in 2026 to stay below the long-term average.
The Highland Group reported that extended-stay hotels posted their largest quarterly gains in demand, ADR, RevPAR and room revenue in years in the second quarter. Rooms under construction fell 30 percent year over year, pointing to slower supply growth ahead.
