Skip to content

Search

Latest Stories

Report: Economy and mid-price extended-stay hotels lead recovery in September

Upscale properties in the segment continue to struggle with bottom-up recovery

Report: Economy and mid-price extended-stay hotels lead recovery in September

MOST ECONOMY AND MID-PRICE extended-stay hotels’ performance in September was down compared to August, according to a report from hotel investment advisors The Highland Group. However, the bottom-up recovery and room supply distribution geographically are hindering the upscale segment’s recovery.

Relative to other classes of hotels, mid-price extended-stay hotels recorded the largest gain in September, the U.S. Extended-Stay Hotels Bulletin: September 2021 report said. Occupancy, ADR and RevPAR indices for upscale extended-stay hotels were about the same in  September as in August but the decline in absolute ADR resulted in the segment’s revenue recovery falling below 95 percent.


Economy and mid-price segments both reported about a three-point gain in ADR recovery index in September compared to the month before. The upscale segment’s ADR remained unchanged, the report said.

“The mid-price extended-stay segment’s gains in both ADR and occupancy pushed it slightly ahead of the upscale segment in terms of RevPAR growth. Because the overall hotel industry lost far more RevPAR than extended-stay hotels, its RevPAR growth in September 2021 compared to last year was 85 percent more than extended-stay hotels,” the report added.

“Extended-stay hotels’ occupancy premium above the overall hotel industry widened to 16 points in September and is expected to widen further during the fourth quarter of 2021” said Mark Skinner, partner at The Highland Group.

According to the report, the 4.2 percent increase in extended-stay room supply in September was the lowest monthly gain this year, reflecting the declining uptick to supply growth from reopening hotels closed during the pandemic.

“Upscale extended-stay hotels endured the largest fall in demand and are leading the demand recovery. Extended-stay hotel demand reached 12.93 million room nights in September 2021, up 9 percent during the same period two years ago. The overall hotel industry lost far more revenue than extended-stay hotels in 2020, so it is now recovering revenue relatively quickly,” the report said. “The waning boost from summer travel impacted overall hotel industry occupancy more than extended-stay hotels, widening extended-stay hotel’s occupancy premium to 16 percentage points in September. The premium has stayed above its long-term average for most of the last 18 months.”

STR has reported that all hotel room revenue was up 80 percent in September compared to last year.

More for you

U.S. travelers using mobile devices to book independent boutique hotel stays with personalized offers and smart tech in 2025

Study: Personalization boosts independent hotel bookings

Summary:

  • Around 95 percent of U.S. travelers are more likely to book independent hotels with personalized offers, according to TakeUp.
  • 59 percent plan more travel in 2025, with 78 percent favoring weekend getaways and 65 percent domestic trips.
  • Top booking deterrents are few reviews at 39 percent, unclear cleanliness or quality at 38 percent and inflexible cancellations at 29 percent.

PERSONALIZED OFFERS BASED on interests would make 95 percent of U.S. travelers more likely to book at an independent hotel, according to TakeUp, a revenue management platform for independent hotels. About 85 percent are open to technologies such as smart check-in, recommendations and AI-based pricing.

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
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
Arizona SpringHill Suites Added as 9th DST by Peachtree

Peachtree adds AZ SpringHill Suites as 9th DST

Summary:

  • Peachtree Group added the 128-key SpringHill Suites Phoenix West Avondale in Avondale, Arizona, its ninth Delaware Statutory Trust offering.
  • The hotel, opened in August 2024, is positioned to benefit from Avondale’s population and economic growth.
  • Peachtree’s DSTs offer tax deferral for investors reinvesting proceeds from appreciated real estate.

PEACHTREE GROUP RECENTLY added the 128-key SpringHill Suites Phoenix West Avondale in Avondale, Arizona, structured as a Delaware Statutory Trust. This marks the company’s ninth DST offering since launching the program in 2022.

Keep ReadingShow less