- Extended-stay demand rose 6.2 percent in July.
- FIFA World Cup boosted hotel performance.
- Room revenue rose 10.4 percent YoY.
EXTENDED-STAY HOTEL DEMAND rose 6.2 percent in July, the largest monthly gain since February 2022, according to The Highland Group. Demand growth exceeded supply growth for the sixth straight month.
Highland Group’s “US Extended-Stay Hotels Bulletin: July 2026” found that the FIFA World Cup boosted extended-stay hotel performance, mainly in the first half of July. ADR, RevPAR and room revenue posted their second-largest monthly gains in more than three years, with ADR seeing the largest impact.
“With six consecutive months of demand growth exceeding the increase in supply, the outlook for more extended-stay hotel RevPar gains is very promising,” said Mark Skinner, Highland Group’s partner.
Extended-stay room nights available increased 4.7 percent in July from a year earlier. Supply growth remained below its long-term average, while demand has exceeded its long-term trend each month since February.
Supply growth averaged 4.6 percent in the first seven months of 2026. With fewer extended-stay rooms under construction, full-year supply growth is expected to remain below the long-term annual average.
Room revenue increased 10.4 percent from a year earlier, the second-largest monthly gain since March 2023. Overall hotel room revenue rose 9.3 percent, while revenue for comparable hotels excluding luxury and upper-upscale properties increased 7.3 percent, according to STR/CoStar.
Meanwhile, room revenue increased 2 percent for economy hotels, 7.5 percent for midscale hotels and 10.9 percent for upscale hotels. Extended-stay demand rose 6.2 percent, compared with 3.1 percent across comparable hotel classes.
Key metrics overview
Extended-stay demand growth exceeded its 5 percent long-term average annual increase for the sixth consecutive month. Including the additional day in February 2024, demand increased in 43 of the past 44 months.
Occupancy increased 1.5 percent in July, its sixth consecutive monthly gain and largest increase in three months. Extended-stay occupancy was 10.2 percentage points above the average for comparable hotel classes, typical for a summer month.
Extended-stay ADR rose 3.9 percent, its sixth consecutive monthly increase and second-largest gain since May 2023. Economy and mid-price extended-stay hotels recorded higher ADR growth than their corresponding STR/CoStar classes.
RevPAR increased 5.5 percent, its sixth consecutive monthly gain and second-largest increase since March 2023. The increase was below the 5.6 percent gain for comparable hotel classes, while economy, mid-price and upscale hotels recorded RevPAR growth of 2.8 percent, 5.8 percent and 8.6 percent, respectively.
Highland Group’s “First Half Year 2026” report found that room revenue rose 9 percent in the second quarter, the largest quarterly gain in more than three years. RevPAR increased 4.2 percent, its highest gain in 13 quarters, while demand rose 6 percent, the largest quarterly increase since the first quarter of 2022.
