Skip to content

Search

Latest Stories

Report: Demand for U.S. extended-stay hotels dipped in July

RevPAR recovery for the month was up and while ADR growth slowed it remained highest since 2021

Report: Demand for U.S. extended-stay hotels dipped in July

THE DEMAND PREMIUM that extended-stay hotels have experienced over the past two years compared to other types of hotels is beginning to ebb, according to consulting firm The Highland Group. Also, ADR growth decelerated for the fourth consecutive month in July but remains higher than any other period before 2021.

The overall hotel industry revenue recovery is now only one half a point greater than extended-stay hotels, according to the US Extended-Stay Hotels Bulletin: July 2022 report by the Highland Group. According to STR, all hotel room revenue was up 12.1 percent in July this year compared to last year.


“For the first time in more than two years all three extended-stay segments reported a monthly decline in demand compared to the previous year. Demand declines in economy and mid-price segments, which were less than corresponding falls for all hotels in the same rate categories, are mainly correlated to strong growth in ADR. The upscale segment’s demand decline is correlated to both increasing ADR and the contraction in supply,” the report said.

According to STR data cited in the Highland Group report, overall hotel occupancy gained 0.2 percent in July 2022 compared to 2021, decreasing extended-stay hotel’s occupancy premium to just under 10 percentage points. But it remains at the lower end of its long-term average range.

The RevPAR recovery of extended-stay hotels was up in July compared to June, according to the Highland Group. All extended-stay segments reported faster ADR growth during the month compared to other segments.

Economy extended-stay hotels led the RevPAR recovery in July compared to 2019, but demand declined 2.2 percent compared to the same period last year. This was the fourth consecutive month demand has declined, due to strong increases in ADR over several months, the report said.

There was a 1.2 percent increase in extended-stay room supply in July. This is the fourth successive month supply growth was below 2 percent (excluding some of 2020) and the tenth consecutive month of 4 percent or lower supply growth.

According to the report, the upscale segment reported a fractional decline in supply compared to July 2021, because of disenfranchising hotels by some brands. Some of these will remain as extended-stay hotels while others are being converted to apartments and some will be demolished, the Highland Group report added.

“Mid-price and upscale extended-stay hotels continue to lead ADR growth. The economy segment’s ADR recovery index contracted slightly in July compared to June but mid-price and upscale segments both gained about 2 percent over to 2019. For the fourth successive month, upscale extended-stay hotels more than fully regained ADR back to their nominal 2019 value,” the report pointed out. “Mid-price and upscale segments continued posting the strongest RevPAR growth over the last year. Both segments showed slight gains in 2019 RevPAR indices in July compared to June. Because the overall hotel industry lost far more RevPAR than extended-stay hotels in 2020, its RevPAR growth over the past year was greater but the gap in July was essentially negligible.”

A recent report by the Highland Group has said that the recovery gap between extended-stay hotels and other segments was close in the first half of 2022.

More for you

G6 Hospitality Launches 24/7 Guest Support From August 1
Photo credit: G6 Hospitality

G6 launching 24x7 guest support on Aug. 1

Summary:

  • G6 Hospitality will launch 24x7 guest support on Aug. 1, expanding the current 18-hour window.
  • Escalations from phone, email and social media will be handled promptly by trained staff.
  • The service supports G6’s tech and service investments, including the AI-powered My6 app.

G6 HOSPITALITY, PARENT of Motel 6 and Studio 6, will launch a 24x7 customer support service for guests starting Aug. 1. The service extends the previous 18-hour window to full-day availability via phone, email and social media.

Keep ReadingShow less
Auro Hotels Showcases India Culture at TCMU Exhibit

Auro unveils 'India Cultural Corner' for children

Summary:

  • Auro Hotels opened the India Cultural Corner, where children can check in and explore Indian culture at The Children's Museum of the Upstate.
  • Families can engage with community art, activities and storytelling about daily life in India.
  • The exhibit runs through May 2026, offering interactive learning on Indian culture.

AURO HOTELS RECENTLY opened the India Cultural Corner at The Children's Museum of the Upstate in Greenville, South Carolina, offering a look into Indian stories for American families. The exhibition, held at The Grand Geo Hotel and running through May 2026, includes a hotel desk where children can check in and explore Indian culture through interactive activities.

Keep ReadingShow less
U.S. Firms Lose $2.4 Trillion by Skimping on Business Travel

Report: Business travel gaps cost U.S. firms $2.4T

Summary:

  • U.S. companies risk losing more than $2.4 trillion in sales due to underinvestment in business travel, says GBTA.
  • An 8.3 percent T&E increase could drive a 6 percent sales gain, despite post-COVID virtual meeting tools.
  • Current T&E spending is $294 billion—$24 billion short of the $319.1 billion needed for peak profitability.

U.S. COMPANIES ARE missing more than $2.4 trillion in potential sales due to underinvestment in business travel, according to a Global Business Travel Association report. Despite a post-pandemic rebound, travel and entertainment spending remains $66 billion below 2019 levels.

Keep ReadingShow less
AI threats in hospitality

Study: Cyberattacks on hotels to surge

Summary:

  • Around 66 percent of hotel IT and security executives expect more cyberattacks this summer, and 50 percent anticipate greater severity, according to VikingCloud.
  • Guest-facing systems most at risk include POS and payment technology at 72 percent, guest WiFi at 56 percent and front desk systems at 34 percent.
  • About 48 percent of executives lack confidence in their staff’s ability to detect and respond to AI-driven attacks and deepfakes.

APPROXIMATELY 66 PERCENT of hotel IT and security executives expect an increase in cyberattack frequency and 50 percent anticipate greater severity during the summer travel season, according to cybersecurity firm VikingCloud. In summer 2024, 82 percent of North American hotels experienced a cyberattack and 58 percent were targeted five or more times.

Keep ReadingShow less
Newly renovated Marriott Saddle Brook hotel in New Jersey, now managed by Stonebridge Cos.

Stonebridge to manage Marriott in Saddle Brook, NJ

Summary:

  • Stonebridge Cos. has added the Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service portfolio.
  • The renovated property is owned by Victory Worldwide LLC, led by CEO Anil Monga.
  • Located 20 miles from New York City, it is near the Meadowlands Sports Complex, Garden State Plaza and Hackensack University Medical Center.

STONEBRIDGE COS. RECENTLY added the 244-room Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service managed portfolio. The property is owned by Victory Worldwide LLC, led by CEO Anil Monga.

Keep ReadingShow less