- Extended-stay hotel demand hit a nearly four-year high in February.
- Occupancy rose 0.8 percent, the first gain since December 2024.
- Room revenue rose 5.9 percent YoY, the largest gain since November 2024.
EXTENDED-STAY HOTELS BUILT on their start to 2026 with February performance, according to The Highland Group. Monthly demand growth was the highest in nearly four years, lifting RevPAR and occupancy to positive territory for the first time in 11 and 14 months.
The Highland Group’s “US Extended-Stay Hotels Bulletin: February 2026” reported ADR was unchanged after declines since April, as the overall hotel industry rebounded. Additionally, RevPAR gains for mid-price and upscale hotels exceeded those of extended-stay segments. Economy extended-stay RevPAR declined again but by less than the overall economy segment.
“Economy extended-stay hotel RevPAR declined again in February, but the drop was smaller than that reported for all economy class hotels and recent trends indicate it should turn positive in the next one to two months,” said Mark Skinner, The Highland Group’s partner.
Extended-stay room nights available rose 5 percent in February 2026 from a year earlier. Supply growth increased in the second half of 2025. Annual supply growth ranged from 2.1 to 4 percent over the past three years but averaged 4.9 percent over the past three months, in line with the long-term average. With fewer rooms under construction, total supply in 2026 may exceed the long-term average annual increase slightly.
Key metrics
Extended-stay occupancy rose 0.8 percent in February, the first increase since December 2024, the report said. Occupancy was 14.4 percentage points higher than comparable hotel classes. Economy extended-stay occupancy rose for a second consecutive month.
Extended-stay ADR in February was unchanged from a year earlier after ten months of declines. Economy was the only segment with an ADR decline but outperformed the 3.3 percent drop for economy hotels reported by STR/CoStar. Mid-price extended-stay ADR rose 1.3 percent compared with 0.3 percent for mid-price hotels. ADR for upscale hotels increased 1.1 percent versus 0.2 percent for upscale extended-stay hotels.
Extended-stay RevPAR rose 0.9 percent, the first increase since March last year. STR/CoStar reported RevPAR declined 2.7 percent for economy hotels, rose 3.4 percent for mid-price hotels and increased 2.7 percent for upscale hotels.
Revenues
Extended-stay room revenue rose 5.9 percent year over year, the largest gain since November 2024, The Highland Group said. STR/CoStar reported overall hotel revenue increased 5.2 percent. Excluding luxury and upper upscale segments, hotel revenue rose 4.4 percent.
STR/CoStar reported February room revenue declined 2.8 percent for economy hotels, rose 5.4 percent for midscale hotels and increased 4.3 percent for upscale hotels.
Extended-stay demand grew more than 5 percent in February, exceeding the long-term average for the first time in 14 months and marking the largest gain since March 2022. STR/CoStar reported comparable hotel demand increased 3.3 percent.
All three extended-stay segments reported higher demand growth than their corresponding hotel classes, the report said. Adjusted for the extra day in February 2024, extended-stay demand increased in 38 of the last 39 months.
The Highland Group’s January data showed extended-stay hotels began 2026 with most metrics outperforming comparable hotel classes, with gains in demand and room revenue as supply growth slowed and RevPAR decline eased.
