- The Highland: Extended-stay occupancy growth hits three-year high.
- Room revenues rise 8.2 percent, RevPAR up 3.9 percent.
- Extended-stay demand posts largest gain since 2022.
EXTENDED-STAY HOTELS in April recorded their largest occupancy increase since January 2023 and their biggest room revenue gain since March 2023, according to The Highland Group. Demand growth outpaced supply growth, driving gains in occupancy, ADR and RevPAR.
Highland Group's "US Extended-Stay Hotels Bulletin: April 2026" found occupancy rose 1.9 percent year over year in April, the largest increase since January 2023 and the third consecutive monthly gain. Extended-stay occupancy remained 11.9 percentage points above comparable hotel classes.
“The acceleration of all extended-stay hotel performance metrics over the last three months is a solid basis for widespread positive change in RevPar in 2026,” said Mark Skinner, partner at Highland Group.
Extended-stay hotel demand recorded its largest monthly increase since February 2022 in April, the report said. Demand growth exceeded the segment's 5 percent long-term average for the third consecutive month and outpaced the 2.6 percent increase reported for comparable hotel classes by STR/CoStar.
Room night supply increased 4.2 percent from April 2025, Highland Group found. Supply growth slowed as the number of rooms under construction declined. Annual supply growth has ranged from 2.1 percent to 4 percent over the past three years and averaged 4.3 percent during the last three months. Full-year supply growth is expected to remain below the long-term average.
ADR increased 2 percent in April, its third consecutive monthly gain. All three extended-stay segments posted ADR growth, outpacing the 1.8 percent increase reported for comparable hotel classes by STR/CoStar.
RevPAR rose 3.9 percent year over year, its third consecutive monthly increase and the largest since May 2023, the report said. All extended-stay segments outpaced comparable hotel classes, where RevPAR increased 0.3 percent for economy hotels, 2 percent for midscale hotels and 3.1 percent for upscale hotels, according to STR/CoStar.
Extended-stay room revenues increased 8.2 percent in April, compared with 5.1 percent for all hotels and 4.5 percent excluding luxury and upper-upscale properties. Comparable hotel classes reported revenue declines of 0.2 percent in economy hotels, while revenues increased 3.4 percent in midscale hotels and 5 percent in upscale hotels.
After adjusting for the leap-year impact in February 2024, extended-stay hotel demand recorded year-over-year growth in 40 of the last 41 months.
The Highland Group recently reported that extended-stay hotels recovered in the first quarter after three quarters of RevPAR declines. Demand increased, supply growth slowed and first-quarter occupancy rose for the first time in two years.
