Upscale extended-stay hotels showed mixed results, with larger declines in November but smaller losses in three of the last seven months, according to Highland Group’s “U.S. Extended-Stay Hotels Bulletin: November 2025” report. It also found that extended-stay hotels are expected to see negative RevPAR changes through the rest of 2025, though declines are likely smaller than in other hotel classes.
“Extended-stay hotels are expected to see a decline in RevPAR in December and possibly into early 2026, but the decline should not be as large as in comparable hotel classes, especially at lower price points,” said Mark Skinner, partner at The Highland Group.
Extended-stay room nights available rose 5.1 percent in November 2025 compared with November 2024. Excluding pandemic-related closings and reopenings, this was the largest monthly increase since February 2020.
Meanwhile, supply has risen steadily in 2025 and is up 3.5 percent year to date. Calendar-year supply growth ranged from 1.8 percent to 3.1 percent over the past three years, below the long-term annual average of 4.9 percent. The full-year 2025 increase will remain below this average.
Key metrics, revenue and demand
Extended-stay hotel occupancy fell 2.6 percent in November, the eleventh consecutive monthly decline, slightly above STR/CoStar’s 2.3 percent estimate for all hotels. Extended-stay occupancy remained 12.5 percentage points above the total hotel industry, within the long-term average.
ADR for extended-stay hotels declined for the eighth consecutive month. Economy extended-stay ADR fell the most in November but less than the 4.9 percent decline for all economy hotels. Mid-price extended-stay ADR fell less than the 2.2 percent loss for all mid-price hotels. Upscale extended-stay ADR declined 1.5 percent, compared with 0.3 percent for all upscale hotels.
Extended-stay RevPAR fell 4.2 percent in November, the eighth consecutive monthly decline. STR/CoStar reported November RevPAR declines of 9.2 percent for economy, 5.4 percent for mid-price and 2.7 percent for upscale hotels. Excluding luxury and upper-upscale segments, total hotel RevPAR fell 5.5 percent.
Total extended-stay room revenues in November rose 0.6 percent year over year. STR/CoStar reported overall hotel room revenues fell 1.9 percent compared with November 2024. Excluding luxury and upper-upscale segments, all hotel revenues declined 4.4 percent. November room revenues fell 9.1 percent for economy hotels, 3.9 percent for midscale and 1.3 percent for upscale hotels.
Extended-stay demand rose 2.3 percent in November, above the trailing 12-month average, while total hotel demand fell 1.1 percent. All extended-stay segments saw demand growth compared with declines in their corresponding hotel classes. Adjusting for an extra day in February 2024, extended-stay demand has increased in 35 of the past 36 months.
Extended-stay hotels held up during the seven-month industry downturn through October, with economy RevPAR falling less than all economy hotels for five months and mid-price RevPAR dropping half as much as all mid-price hotels, The Highland Group said.
