Skip to content

Search

Latest Stories

Highland Group: Slight decline in U.S. extended-stay hotels’ performance in October

The month’s 4 percent increase in extended-stay room supply was the lowest monthly gain in 2021.

Highland Group: Slight decline in U.S. extended-stay hotels’ performance in October

MOST RECOVERY INDICES of U.S. extended-stay hotels declined slightly in October compared to the month before, according to hotel investment advisors Highland Group. Economy extended-stay hotels continue to lead the RevPAR recovery during the month with a 20 percent gain over the same period two years ago.

The mid-price segment has more than recovered RevPAR every month since July and upscale extended-stay hotels continue to lag mainly due to the relatively high concentration of rooms in urban locations, according to “U.S. Extended-stay Hotels Bulletin: October 2021” report from to The Highland Group.


According to the report, the 4 percent increase in extended-stay room supply in October was the lowest monthly gain in 2021. Mid-price and upscale supply growth should be well below pre-pandemic levels in the near future as the impact to supply growth from reopening hotels closed during the pandemic is almost over, the report added.

The recent Highland Group report said that U.S. extended-stay hotels saw all-time highs in third quarter.

“The overall hotel industry lost far more revenue than extended-stay hotels in 2020, so it is now recovering revenue relatively quickly,” the October report of Highland Group said.

STR reports all hotel room revenue was up 87 percent in October compared to a year ago.

“Upscale extended-stay hotels endured the largest fall in demand and are leading the demand recovery. Extended-stay hotel demand reached 13.41 million room nights in October, up 7 percent when compared to the same month in 2019. Overall hotel occupancy gained more than extended-stay hotels in October, reducing extended-stay hotel’s occupancy premium to 14.5 percentage points. However, the premium remains above its long-term average, where it has stayed for most of the last 18 months,” the report said.

“Mid-price extended-stay hotels continued to lead the ADR recovery in October, as it was unchanged from the month before. Owing to this, the segment pushed further ahead of the upscale segment in terms of RevPAR growth, despite losing considerably less RevPAR in 2020.”

However, when compared to extended-stay hotels, the RevPAR growth of the overall hotel industry was more than doubled in October 2021 relative to last year. It is mainly because the industry suffered steep decline in RevPAR due to the pandemic, the report added.

More for you

Auro Hotels Launches $2M 'Rama Legacy' Scholarship

Auro launches $2M scholarship for employees’ children

What is the Rama Legacy Scholarship by Auro Hotels?

AURO HOTELS LAUNCHED its $2 million Rama Legacy Scholarship endowment for employees' children, continuing a tradition started by company co-founder H.P. Rama. Several students received scholarships in this inaugural year, reflecting the company’s view that its success depends on its people.

As founding chairman of AAHOA and past chairman of the American Hotel and Lodging Association, Rama believes the hospitality industry’s strength lies in developing its people, Auro said in a statement. He established the first scholarship under his family’s name in 1998.

Keep ReadingShow less
Colliers: US hotel assets improve in 2025, led by Northeast and Central regions

Report: Hospitality health up on travel, events

What are the key findings from Colliers’ 2025 Hospitality Outlook?

THE FINANCIAL HEALTH of hospitality assets, especially in the northeast and central regions, is improving, driven by leisure travel and the return of conferences and events, according to Colliers. U.S. hotels saw RevPAR rise 2.4 percent, ADR 1.9 percent and a slight uptick in occupancy from April 2024 to March 2025.

Colliers' 2025 Hospitality Outlook report found that some regions are still returning to pre-pandemic demand levels, while others are reaching prior cyclical peaks.

Keep ReadingShow less
Wyndham 2025 ad campaign

Wyndham campaign connects brands, rewards program

What is Wyndham’s new hotel campaign about?

WYNDHAM HOTELS & RESORTS launched an ad campaign promoting all 25 of its hotel brands and rewards program under one voice and the tagline: “Where There’s a Wyndham, There’s a Way”. The company’s campaign highlights accessibility, convenience and authenticity across its 9,300 hotels.

The multi-million dollar campaign spans multiple media and reflects travelers’ preferences, from weekend trips to longer drives, Wyndham said in a statement.

Keep ReadingShow less
Extended Stay America survey 2025

Study: Extended-stay hotels feel more like home

What makes extended-stay hotels better than vacation rentals?

EXTENDED-STAY HOTELS OUTPERFORM vacation rentals and apartments in comfort, value and sense of home, according to a survey by Extended Stay America. About 79 percent of respondents said extended-stay hotels are like a home away from home, while 82 percent said they offer a stronger sense of home than vacation rentals or apartments.

In the national survey by ESA and Wakefield Research, respondents preferred extended-stay hotels over other options, citing amenities at 34 percent, comfort and familiarity at 33 percent and personalization at 30 percent.

Keep ReadingShow less
Zack Gharib Red Roof

Red Roof bets on people, tech for growth

Red Roof’s 2025 Vision: Innovation, Inclusion & Growth

RED ROOF IS focusing on strategic investments in people and technology to advance the brand amid evolving challenges, said Zack Gharib, Red Roof’s president. Gharib also spoke about the company’s new prototype, the power of the extended stay segment and human trafficking.

Regarding its diversity and inclusion efforts, the company focuses on its long-standing initiatives including SHE, inspired by Red Roof and Road to Inclusion, Diversity and Equality. SHE and RIDE recently helped Red Roof prioritize women and underrepresented communities with more than 30 new projects.

Keep ReadingShow less