Skip to content

Search

Latest Stories

Report: Extended-stay hotels perform well in November

Overall demand in the sector declined in November 2022 compared to last year

Report: Extended-stay hotels perform well in November

U.S. EXTENDED-STAY hotels continued to perform well in November with recovery indices up compared to October and 2019, according to a report from The Highland Group. However, the market is showing signs of slowing.

All extended-stay segments posted RevPAR gains in November compared to last year, the US Extended-Stay Hotels Bulletin: November 2022 report said.


“Monthly gains in ADR and RevPAR have decelerated for most of the year and November increases were the lowest in 2022. Both economy and mid-price segments reported RevPAR increases well below the rate of inflation for the first time in November,” the report said. “ADR growth is still high compared to long-term averages but with the economy segment reporting its eighth consecutive monthly decline in demand and mid-price extended-stay hotel demand also declining in November, rate resistance is building especially at lower price points."

According to The Highland Group, the 1.2 percent increase in extended-stay room supply in November is the eighth successive month supply growth was 2 percent or lower and marks 14 months of 4 percent or lower supply growth, well below the long-term average.

“Fractional net supply gains in economy and upscale segments compared to November 2021 are largely due to re-branding moving rooms between segments in our database, de-flagging of hotels which no longer meet brand standards, as well as the sales of some hotels to multi-family apartment companies and municipalities. Monthly revenue growth rates for the overall hotel industry and extended-stay hotels have generally narrowed since mid-year 2022 as the overall industry caught up from much larger revenue declines during the previous two years,” the report said.

“The decline in extended-stay hotel average occupancy in November compared to an increase for all hotels in addition to faster ADR growth resulted in 8.9 percent monthly revenue growth for extended-stay hotels compared to the 16.5 percent, STR reported for all hotels.”

Following three successive months of increasing demand, overall extended-stay demand declined in November 2022 compared to 2021. Economy and mid-price segment decreases were generally consistent with the same classes of all hotels as reported by STR.

Upscale extended-stay hotels reported an increase in demand in November. However, it was far smaller than the 7 percent increase STR reported for all upscale hotels.

According to STR, total hotel occupancy gained 3.2 percent in November 2022 compared to 2021. Over the same period, extended-stay hotel  average  occupancy  fell  1.9 percent,  decreasing extended-stay  hotel’s  occupancy  premium  to  12.2 percentage points compared to 15.6 points in November 2021. However, the premium remains within its long-term average range.

“Upscale was the only extended-stay segment reporting an occupancy increase in November 2022 similar to October. However, at 95.5 percent, its occupancy index is still below the corresponding month in 2019. Only in April 2022 did the upscale extended-stay segment’s occupancy index exceed 100 percent this year,” the Highland Group report said.

November was the third successive month in which the upscale segment reported the strongest monthly gain in extended-stay hotel ADR. Mid-price segment ADR growth has decelerated every month since April. Overall, November was the thirteenth consecutive month that total extended-stay ADR was higher than its nominal value in 2019.

“The upscale segment has posted the strongest gains in RevPAR each month since June 2022 but in November the gap was much wider than economy and mid-price segment increases compared to earlier in the year,” the report said.

In an earlier report, the Highland Group said that U.S. extended-stay hotels set new performance records for demand, ADR and RevPAR in the third quarter of 2022.

More for you

Stonebridge hotel management expansion
Photo credit: Stonebridge Cos.

Stonebridge adds Statler Dallas to managed portfolio

Summary:

  • Stonebridge Cos. added the Statler Dallas, Curio Collection by Hilton, to its managed portfolio.
  • The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group.
  • The property is near Main Street Garden Park, the Arts District and the Dallas World Aquarium.

STONEBRIDGE COS. HAS contracted to manage the Statler Dallas, Curio Collection by Hilton in Dallas to its managed portfolio. The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group, led by Mehrdad Moayedi.

Keep ReadingShow less
GSA keeps FY 2026 federal per diem lodging and meal rates flat

Federal per diem rates stay flat for FY 2026

Summary:

  • GSA will keep federal per diem rates the same for FY 2026.
  • The lodging rate stays $110 and meals allowance $68.
  • AHLA raised concerns over the impact on government travel.

THE U.S. GENERAL Services Administration will keep standard per diem rates for federal travelers at 2025 levels for fiscal year 2026. The American Hotel and Lodging Association raised concerns that the decision affects government travel, a key economic driver for the hotel industry.

Keep ReadingShow less
Comfort Hotels to Host "Waffle Lounge" Pop-Up in NYC, USA

Comfort hosting ‘Waffle Lounge’ in NYC

Summary:

  • Comfort Hotels will host the one-day Waffle Lounge in New York City on Aug. 21.
  • The Union Square event runs from 12 to 7 p.m.
  • Visitors can win a one-night stay at a participating Comfort or other Choice hotel.


CHOICE’S COMFORT HOTELS is bringing its signature breakfast item to life with the Waffle Lounge, a one-day pop-up event in New York City on Aug. 21. The event, timed to coincide with National Waffle Day on Aug. 24, highlights the brand’s role in offering guests a sense of home during their travels.

Keep ReadingShow less
Travel & Tourism Deals Fall 8% Globally
iStock

Report: Travel and tourism deals down 8 percent

Summary:

  • Global travel and tourism deal activity fell 8 percent YoY in H1 2025.
  • Venture financing dropped 25 percent and private equity fell 20 percent.
  • North America recorded a 10 percent decline while Central America dropped 12 percent.

THE GLOBAL TRAVEL and tourism sector recorded an 8 percent year-on-year decline in total deal activity during the first half of 2025, according to market data firm GlobalData. Reduced investor appetite was seen across major deal types: mergers and acquisitions, private equity and venture financing.

Keep ReadingShow less
Vision Hospitality Hosts Red Sand Project in Chattanooga, Tennessee
Photo credit: Vision Hospitality Group

Vision hosts Red Sand Project against human trafficking

Summary:

  • Vision held its Red Sand Project to combat human trafficking in Chattanooga, Tennessee.
  • It fights trafficking through partnerships, staff training and philanthropic support.
  • Tennessee reported 213 human trafficking cases in 2024, involving 446 victims.

VISION HOSPITALITY GROUP held its fourth annual Red Sand Project with WillowBend Farms to combat human trafficking in Chattanooga, Tennessee. The event brought together organizations working to combat human trafficking, including the Family Justice Center for Hamilton County and the Hamilton County Health Department.

Keep ReadingShow less