Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently senior editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers. Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
EXTENDED-STAY HOTELS in June mirrored the April and May trend, where the economy segment saw a RevPAR decrease, while upscale extended-stay hotels achieve substantial growth, according to The Highland Group. The segment also finished the first half of 2023 on mixed results as occupancy dropped to a 13-year low while ADR and RevPAR increased faster than the overall hotel industry.
Summer travel season provides mixed results in June
Extended-stay hotels followed a pattern similar to that of April and May, with the economy segment experiencing a RevPAR decline, while upscale extended-stay hotels saw substantial RevPAR growth in June, according to Highland Group. Overall, extended-stay hotel segments consistently surpassed their counterparts in the wider hotel industry.
“Following two previous months in which extended-stay hotels achieved better performance than corresponding classes of all hotels, the onset of the summer travel season produced varying results in June,” said Mark Skinner, partner at The Highland Group. “Economy extended-stay hotels continued to report declining demand compared to a year ago but the decline was far less than for all economy class hotels. RevPAR growth for all hotels exceeded the extended-stay hotel gain but this was due to a smaller decline in occupancy as extended-stay hotels continued to report relatively strong growth in ADR. As expected, the summer travel season delivered greater revenue growth for higher priced extended-stay hotels.”
During the month, extended-stay hotel occupancy outpaced the overall hotel industry by 9.5 percentage points, a customary trend during the summer season. The variation in occupancy among extended-stay hotel segments mirrors the typical summer travel season, which often elevates occupancy rates at higher-priced extended-stay hotels, Highland said.
June marked the 10th consecutive month where the upscale segment registered the most substantial monthly increase in extended-stay hotel ADR. This also signifies the 20th straight month in which the total extended-stay ADR surpassed its nominal value in 2019.
The ADR growth observed in June also surpasses the 2.3 percent gain reported by STR for the overall hotel industry, aligns with the rate of increase seen between mid-2012 and the same period in 2014, it further said.
Since June 2022, the upscale segment consistently achieved the highest RevPAR gains each month.
“RevPAR growth for mid-price extended-stay hotels lagged behind the equivalent category for all hotels, while the economy segment experienced a 2.7 percent decline, aligning with the contraction reported by STR for all economy segment hotels,” the report said.
Meanwhile, extended-stay hotels outperformed the broader industry in May, demonstrating excellence across all segments. Despite the economy segment's RevPAR decline, upscale extended-stay hotels led with the highest increase, surpassing all other segments for June.
June witnessed the smallest monthly growth in total extended-stay hotel revenue in over two years. However, this increase surpassed the 2.8 percent gain reported by STR for all hotels during the same period, the report added.
In June, demand rose in the mid-price and upscale segments. “The economy segment saw its fifteenth consecutive monthly decline in demand, yet this contraction was the smallest in over a year and significantly less than the 4.4 percent decrease reported by STR for all economy hotels.”
The month also saw a 1.7 percent net rise in extended-stay room supply, aligning with the 12-month average. This marked the twenty-first month of modest 4 percent or less supply growth, notably below the long-term average. However, the economy segment recorded its most robust monthly supply gain in over two years, the report said.
Monthly supply comparisons, particularly in the upscale segment, continue to be influenced by re-branding that involves shifting rooms between segments in our database, the removal of hotels no longer meeting brand standards, and the sale of properties to multi-family apartment firms and municipalities, the June report said.
“While this effect is expected to diminish by the end of 2023, the overall yearly supply rise compared to 2022 is anticipated to remain significantly lower than the long-term average,” the report said.
Overall hotel industry catching up in first half of 2023
Highland Group’s mid-year report found that the overall hotel industry continued to catch up to extended-stay’s performance, even though it remained behind somewhat. RevPAR for the segment rose 3.2 percent during the second quarter of the year, the smallest quarterly increase in more than three years that was nevertheless better than the 2.7 percent increase reported for the overall hotel industry.
Extended-stay’s RevPAR recovery index for the second quarter was 113 percent, two points ahead of the rest of the industry. While the segment’s rates continued to increase, occupancy was dropping. Economy and mid-price extended-stay hotel segments are outperforming corresponding classes of all hotels.
“Very low supply growth bodes well for extended-stay hotels but the biggest single factor impacting near term metrics is likely to be the performance of the overall hotel industry,” Skinner said.
Supply and demand
In the extended-stay pipeline, rooms under construction gained 3 percent over the last year, lower than the pre-pandemic period and recent annual extended-stay hotel supply growth is among the lowest ever recorded, according to the report. It was between 2010 and 2014 that the segment last saw supply growth at the current level, when increases stayed at 3 percent or lower for four years.
“Extended-stay supply growth has been 3 percent or lower for only five consecutive quarters, indicating several more are ahead,” the report said. “Coupled with a near nationwide stagnant residential market, which is not likely to be resolved during the near term, and the expected boost to demand from the massive infrastructure bill, the foreseeable outlook for extended-stay hotels remains very good. Much, however, will depend on the performance of the overall hotel industry.”
Extended-stay hotel highlights from the mid-year report are:
Room revenues were up 9 percent year to date
Economy segment occupancy fell to a 13-year low
ADR growth was at a two-year low but above long-term average gain 11 percentage point occupancy premium compared to all hotels
Rooms under construction was second lowest in nine years
A PETITION FOR a referendum on Los Angeles’s proposed “Olympic Wage” ordinance, requiring a $30 minimum wage for hospitality workers by the 2028 Olympic Games, lacked sufficient signatures, according to the Los Angeles County Registrar. The ordinance will take effect, raising hotel worker wages from the current $22.50 to $25 next year, $27.50 in 2027 and $30 in 2028.
Mandatory health care benefits payments will also begin in 2026.
The L.A. Alliance for Tourism, Jobs and Progress sought a referendum to repeal the ordinance, approved by the city council four months ago. The petition needed about 93,000 signatures but fell short by about 9,000, according to Interim City Clerk Petty Santos.
The council approved the minimum wage increase for tourism workers in May 2023, despite opposition from business leaders citing a decline in international travel. The ordinance requires hotels with more than 60 rooms and businesses at Los Angeles International Airport to pay workers $30 an hour by 2028. It passed on a 12 to 3 vote, with Councilmembers John Lee, Traci Park and Monica Rodriguez opposed.
The L.A. Alliance submitted more than 140,000 signatures in June opposing the tourism wage ordinance, triggering a June 2026 repeal vote supported by airlines, hotels and concession businesses.
AAHOA called the ruling a setback for Los Angeles hotel owners, who will bear the costs of the mandate.
"This ruling is a major setback for Los Angeles' small business hotel owners, who will shoulder the burden of this mandate," said Kamalesh “KP” Patel, AAHOA chairman. "Instead of working with industry leaders, the city moved forward with a policy that ignores economic realities and jeopardizes the jobs and businesses that keep this city's hospitality sector operating and supporting economic growth. Family-owned hotels now face choices—cutting staff, halting hiring, or raising rates—just as Los Angeles prepares to host millions of visitors for the World Cup and 2028 Olympics. You can't build a city by breaking the backs of the small businesses that make it run."
Laura Lee Blake, AAHOA president and CEO, said members are proud to create jobs in their communities, but the ordinance imposes costs that will affect the entire city.
“Even with a delayed rollout, the mandate represents a 70 percent wage increase above California's 2025 minimum wage,” she said. “This approach could remove more than $114 million each year from hotels, funds that could instead be invested in keeping workers employed and ensuring Los Angeles remains a competitive destination. The mandate increases the risk of closures, layoffs and a weaker Los Angeles."
A recent report from the American Hotel & Lodging Association found Los Angeles is still dealing with the effects of the pandemic and recent wildfires. International visitation remains below 2019 levels, more than in any other major U.S. city.
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AHLA Foundation is partnering with ICHRIE and ACPHA to support hospitality education.
The collaborations align academic programs with industry workforce needs.
It will provide data, faculty development, and student engagement opportunities.
THE AHLA FOUNDATION, International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration work to expand education opportunities for students pursuing hospitality careers. The alliances aim to provide data, faculty development and student engagement opportunities.
Their efforts build on the foundation’s scholarships and link academics to workforce needs, AHLA said in a statement.
"We're not just funding education—we're investing in the alignment between academic learning and professional readiness," said Kevin Carey, AHLA Foundation president and CEO. "These partnerships give us the insights needed to support students and programs that effectively prepare graduates to enter the evolving hospitality industry."
ACPHA will provide annual reports on participating schools’ performance, enabling the Foundation to direct resources to programs with curricula aligned to industry needs, the Foundation said.
Thomas Kube, incoming ACPHA executive director, said the partnership shows academia and industry working together for hospitality students. The collaboration with ICHRIE includes program analysis, engagement through more than 40 Eta Sigma Delta Honor Society chapters and faculty development.
“Together, we are strengthening pathways to academic excellence, professional development and industry engagement,” said Donna Albano, chair of the ICHRIE Eta Sigma Delta Board of Governors.
U.S. holiday travel is down to 44 percent, led by Millennials and Gen Z.
Younger consumers are cost-conscious while older generations show steadier travel intent.
76 percent of Millennials are likely to use AI for travel recommendations.
NEARLY 44 PERCENT of U.S. consumers plan to travel during the 2025 holiday season, down from 46 percent last year, according to PwC. Millennials and Gen Z lead travel intent at 55 percent each, while Gen X sits at 39 percent and Baby Boomers at 26 percent.
PwC’s “Holiday Outlook 2025” survey found that among those not traveling, about half prefer to celebrate at home and cost concerns affect 43 percent, rising to 50 percent for Gen Z non-travelers. Visiting friends and relatives remains the main reason for holiday travel, cited by roughly 48 percent of those planning trips.
Younger consumers are more cost-conscious, while older generations show steadier travel intent. This split influences travel operators’ planning: younger travelers may require clear value, bundled perks and flexible options, whereas older travelers respond to reliability and convenience. Despite overall spending pressure, travel remains a key priority, reflecting its social and emotional importance during the holidays.
PwC surveyed 4,000 U.S. consumers from June 26 to July 9, with 1,000 each from Gen Z, Millennials, Gen X and Boomers, balanced by gender and region.
Generational spending patterns
Gen Z plans a 23 percent reduction in spending after last year’s 37 percent surge, while Boomers expect a 5 percent increase. Millennials are largely flat, down 1 percent and Gen X edges up 2 percent. Overall holiday spending is down 5 percent, with gift spending falling 11 percent, while travel and entertainment budgets remain stable, increasing 1 percent.
Households with children under 18 plan to spend more than twice as much as households without, averaging $2,349 compared to $1,089, highlighting the focus on family-centered experiences.
For travel and hospitality operators, these patterns suggest stronger conversion potential among older cohorts with steadier budgets and the need for clear value and cost transparency for younger travelers. Consumers are prioritizing experiences and togetherness over material gifts. Flexible fares, transparent pricing and bundled benefits such as Wi-Fi, breakfast, or late checkout can reinforce value and encourage bookings, especially among younger demographics. Gen Z’s pullback makes price-to-experience ratios decisive.
AI, timing and travel strategy
About 76 percent of Millennials say they are likely to use AI agents for recommendations, signaling a shift to “assistant-first” travel discovery. Operators must provide structured, AI-readable content, including route maps, fees, loyalty policies and inventory availability. Brands that do not may be invisible in AI-driven search and recommendation systems.
This year’s late Thanksgiving on Nov. 27 compresses the holiday booking window. Short-haul visiting-friends-and-relatives trips may see bunched reservations, increasing demand for early inventory visibility, simple cancellation policies and accurate last-minute availability. Operators should hold a portion of inventory for late bookings, streamline mobile checkouts and maintain flexible policies to capture last-minute travelers.
Strategies should be generationally targeted. Boomers and Gen X respond to comfort, reliability and multi-generational options, while Millennials and Gen Z require clear value and AI-optimized offers. Focusing on VFR travel through “home for the holidays” packages, flexible dates, partner transport and easy add-on nights can capture demand in key residential hubs.
Despite overall spending declines, travel remains a priority. Operators that deliver transparent value, AI-ready content and offers tailored to each generation can maintain bookings, convert last-minute demand and meet consumers’ evolving holiday expectations.
A TravelBoom Hotel Marketing report found that Americans continue to prioritize travel despite inflation and economic uncertainty, but with greater financial caution. About 74.5 percent plan a summer vacation and 17.5 percent are considering one, showing strong demand linked to careful budgeting.
Global hotel RevPAR is projected to grow 3 to 5 percent in 2025, JLL reports.
Hotel RevPAR rose 4 percent in 2024, with demand at 4.8 billion room nights.
London, New York and Tokyo are expected to lead investor interest in 2025.
GLOBAL HOTEL REVPAR is projected to grow 3 to 5 percent in 2025, with investment volume up 15 to 25 percent, driven by loan maturities, deferred capital spending and private equity fund expirations, according to JLL. Leisure travel is expected to decline as consumer savings tighten, while group, corporate and international travel increase, supporting RevPAR growth.
Major cities continue to attract strong demand and investor interest, particularly London, New York and Tokyo. APAC is likely to post the strongest growth, fueled by recovering Chinese travel, while urban markets remain poised for continued momentum.
Lifestyle hotels are emerging as the new “third place,” blending living, working and leisure. The trend is fueling expansion into branded residences and alternative accommodations. JLL said investors must weigh regional performance differences, asset types and lifestyle trends when evaluating opportunities.
Separately, a Hapi and Revinate survey found fragmented systems, inaccurate data and limited integration remain barriers for hotels seeking better data access to improve guest experience and revenue.
Fragmented systems, poor integration limit hotels’ data access, according to a survey.
Most hotel professionals use data daily but struggle to access it for revenue and operations.
AI and automation could provide dynamic pricing, personalization and efficiency.
FRAGMENTED SYSTEMS, INACCURATE information and limited integration remain barriers to hotels seeking better data access to improve guest experiences and revenue, according to a newly released survey. Although most hotel professionals use data daily, the survey found 49 percent struggle to access what they need for revenue and operational decisions.
“The Future of Hotel Data” report, published by hospitality data platform Hapi and direct booking platform Revinate, found that 40 percent of hoteliers cite disconnected systems as their biggest obstacle. Nearly one in five said poor data quality prevents personalization, limiting satisfaction, loyalty and upsell opportunities.
“Data is the foundation for every company, but most hotels still struggle to access and connect it effectively,” said Luis Segredo, Hapi’s cofounder and CEO. “This report shows there’s a clear path forward: integrate systems, improve data accuracy and embrace AI to unlock real-time insights. Hotels that can remove these technology barriers will operate more efficiently, drive loyalty, boost revenue and ultimately gain a competitive edge in a tight market.”
AI and automation could transform hospitality through dynamic pricing, real-time personalization and operational efficiency, but require standardized, integrated and reliable data to succeed, the report said.
Around 19 percent of respondents cited communication delays as a major issue, while 18 percent pointed to ineffective marketing, the survey found. About 10 percent reported challenges with enterprise initiatives and 15 percent said they struggled to understand guest needs. Nearly 46 percent identified CRM and loyalty systems as the top priority for data quality improvements, followed by sales and upselling at 17 percent, operations at 10 percent and customer service at 7 percent.
Meanwhile, hotels see opportunities in stronger CRM and loyalty systems, integrated platforms and AI, the report said. Priorities include improving data quality for personalized engagement, using integrated systems for real-time insights, applying AI for offers, marketing and service and leveraging dynamic pricing and automation to boost efficiency, conversion and profitability.
“Clean, connected data is the key to truly understanding the needs of guests, driving amazing marketing campaigns and delivering direct booking revenue,” said Bryson Koehler, Revinate's CEO. “Looking ahead, hotels that transform fragmented data into connected data systems will be able to leverage guest intelligence data and gain a significant advantage. With the right technology, they can personalize every interaction, shift share to direct channels and drive profitability in ways that weren’t possible before. The future belongs to hotels that harness their data to operate smarter, delight guests and grow revenue.”
In June, The State of Distribution 2025 reported a widening gap between technology potential and operational readiness, with many hotel teams still early in using AI and developing training, systems, and workflows.