- Extended-stay demand rose 5.8 percent in June.
- Occupancy rose 1.1 percent for fifth monthly gain.
- FIFA World Cup boosted extended-stay ADR, RevPAR and revenue gains.
EXTENDED-STAY HOTEL DEMAND rose 5.8 percent in June, the strongest June growth since 2021, when demand was recovering from the pandemic, according to The Highland Group. The FIFA World Cup lifted extended-stay ADR, RevPAR and room revenue gains to their highest monthly levels in more than three years.
The Highland’s FIX! “US Extended-Stay Hotels Bulletin: June 2026” found that the segment recorded five consecutive months of demand growth above its long-term average, with demand outpacing supply growth. Lower construction activity is expected to support further RevPAR gains.
“With a 30 percent drop in extended-stay hotel rooms reported under construction over the last year and demand growth above its long-term average for five consecutive months, the outlook for further extended-stay hotel RevPAR gains is promising,” said Mark Skinner, Highland Group partner.
Demand and supply trends
Room nights available increased 4.6 percent in June compared with June 2025, The Highland said. Supply growth exceeded 5 percent in the second half of 2025 but remained below that level in 2026.
The calendar year supply increase ranged between 2.1 percent and 4 percent over the past three years and averaged 4.6 percent in the last six months. Supply growth in 2026 is expected to remain below the long-term annual average.
Extended-stay rooms reported under construction declined 30 percent over the past year, indicating slower supply growth ahead, the report said. Demand growth exceeded the 5 percent long-term annual average for the fifth consecutive month in June.
Demand increased 5.8 percent in June, compared with a 2.5 percent rise in comparable hotel demand reported by STR/CoStar. Monthly demand has grown in 42 of the last 43 months, including February 2024, which had an additional calendar day.
Performance metrics
Occupancy increased 1.1 percent in June, marking the fifth consecutive monthly gain, the report said. Occupancy was 10.1 percentage points above the average for comparable hotel classes during the summer travel season.
ADR rose 4.6 percent in June, the fifth consecutive monthly increase and the highest since May 2023. Only mid-price extended-stay hotels reported ADR growth above comparable STR/CoStar hotel categories.
RevPAR increased 5.8 percent in June, the fifth consecutive monthly gain and the highest since March 2023. The increase was below the 6.3 percent gain reported by STR/CoStar for comparable hotel classes.
STR/CoStar reported RevPAR growth of 3.2 percent for economy hotels, 6.1 percent for mid-price hotels and 7.3 percent for upscale hotels in June. Extended-stay performance benefited from demand growth, limited supply expansion and summer travel activity.
Revenue trends
Hotel room revenue increased 10.7 percent year over year in June, the highest monthly gain since March 2023, The Highland said. Overall hotel room revenue rose 9.6 percent during the same period, according to STR/CoStar.
Excluding luxury and upper upscale hotels, which have limited extended-stay supply, total hotel room revenue increased 7.3 percent. Economy hotels gained 2.4 percent, midscale hotels rose 7.8 percent and upscale hotels increased 9.4 percent.
All extended-stay segments recorded higher room revenue growth than comparable hotel categories. The FIFA World Cup mainly boosted ADR, leading to the largest monthly gains in ADR, RevPAR and room revenue in more than three years.
Extended-stay hotels outperformed the broader hotel industry in May as demand recorded its highest year-on-year growth in more than four years, according to Highland Group. The increase lifted occupancy, ADR and RevPAR.
