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 assistant 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
Peachtree Group originated a $176.5 million retroactive CPACE loan for a Las Vegas property.
The deal closed in under 60 days and ranks among the largest CPACE financings in the U.S.
The company promotes retroactive CPACE funding for commercial real estate development.
PEACHTREE GROUP ORIGINATED a $176.5 million retroactive Commercial Property Assessed Clean Energy loan for Dreamscape Cos.’s Rio Hotel & Casino in Las Vegas. The deal, completed in under 60 days, is its largest credit transaction and one of the largest CPACE financings in the U.S.
The 2,520-room Rio, now under the Destinations by Hyatt brand, was renovated in 2024 and comprises two hotel towers connected by a casino, restaurants and retail, Peachtree said in a statement.
“This transaction is a milestone for Peachtree Group and a testament to the ecosystem we have built over the past 18 years,” said Greg Friedman, Peachtree's managing principal and CEO. “Through our vertically integrated platform, deep expertise and disciplined approach, we have developed the infrastructure to be a leader in private credit. Our ability to deliver speed, creativity and certainty of execution positions us to provide capital solutions that create value for our investors and partners across market cycles.”
Atlanta-based Peachtree is led by Friedman; Jatin Desai as managing principal and CFO and Mitul Patel as principal.
The CPACE loan retroactively funded the renovations, allowing the owners to pay down their senior loan, the statement said. The property improvement plan included exterior work, upgrades to the central heating and cooling plant, electrical infrastructure improvements and convention center renovations.
Jared Schlosser, Peachtree’s head of originations and CPACE, said the deal marks an inflection point, with major financial institutions consenting to its use for the benefit of the capital stack.
“By closing quickly on a marquee hospitality asset, we were able to strengthen the position of both the owner and its lenders,” he said.
The CPACE market has surpassed $10 billion in U.S. originations in just over a decade, according to the C-PACE Alliance, with growth expected as more institutional owners and lenders adopt it.
“We see significant opportunity for retroactive CPACE and its use in funding new commercial real estate development,” Schlosser said. “It is an alternative to more expensive forms of capital.”
In June, Peachtree named Schlosser head of originations for all real estate and hotel lending and leader of its CPACE program. Peachtree recently launched a $250 million fund to invest in hotel and commercial real estate assets mispriced by capital market illiquidity.
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Global pipeline hit a record 15,871 projects with 2.4 million rooms in Q2.
The U.S. leads with 6,280 projects; Dallas tops cities with 199.
Nearly 2,900 hotels are expected to open worldwide by the end of 2025.
THE GLOBAL HOTEL pipeline reached 15,871 projects, up 3 percent year-over-year, and 2,436,225 rooms, up 2 percent, according to Lodging Econometrics. Most were upper midscale and upscale, LE reported.
The U.S. leads with 6,280 projects and 737,036 rooms, 40 percent of the global total. Dallas leads cities with 199 projects and 24,497 rooms, the highest on record.
LE’s Q2 2025 Hotel Construction Pipeline Trend Report showed 6,257 projects with 1,086,245 rooms under construction worldwide, unchanged in project count and down 3 percent in rooms from last year. Projects scheduled to start in the next 12 months totaled 3,870 with 551,188 rooms, down 3 percent in projects but up 1 percent in rooms. Early planning reached 5,744 projects and 798,792 rooms, up 10 percent in projects and 9 percent in rooms year-over-year.
Upper midscale and upscale hotels accounted for 52 percent of the global pipeline, LE said. Upper midscale stood at 4,463 projects and 567,396 rooms, while upscale reached 3,852 projects and 655,674 rooms. Upper upscale totaled 1,807 projects and 385,396 rooms, and luxury totaled 1,267 projects and 245,665 rooms, up 11 percent year-over-year.
In the first half of 2025, 970 hotels with 138,168 rooms opened worldwide. Another 1,884 hotels with 280,079 rooms are scheduled to open before year-end, for a 2025 total of 2,854 hotels and 418,247 rooms. LE projects 2,531 hotels with 382,942 rooms to open in 2026 and 2,554 hotels with 382,282 rooms to open globally in 2027, the first time a forecast has been issued for that year.
HAMA is accepting submissions for its 20th annual student case competition.
The cases reflect a scenario HAMA members faced as owner representatives.
Teams must submit a financial analysis, solution and executive summary.
THE HOSPITALITY ASSET Managers Association is accepting submissions for the 20th Annual HAMA Student Case Competition, in which more than 60 students analyze a management company change scenario and provide recommendations. HAMA, HotStats and Lodging Analytics Research & Consulting are providing the case, based on a scenario HAMA members faced as owner representatives.
Student teams must prepare a financial analysis, a recommended solution and an executive summary for board review, HAMA said in a statement.
“Each year, the education committee looks forward to the solutions that the next generation of hotel asset managers bring, applying their own experiences to issues in ways that reveal new directions,” said Adam Tegge, HAMA Education Committee chair. “This competition demonstrates that the future of hotel asset management is in good hands.”
The two winning teams will each receive a $5,000 prize and an invitation to the spring 2026 HAMA conference in Washington, D.C. HAMA will cover travel and lodging.
Twenty industry executives on the HAMA education committee will evaluate submissions based on presentation quality, the statement said. HAMA mentors volunteer from September through November to assist teams seeking feedback and additional information. Schools will select finalists by Jan. 15, with graduate and undergraduate teams reviewed separately.
The competition has addressed topics in operating and owning hospitality assets and HAMA consulted university professors to update the format for situations students may encounter after graduation, the statement said.
This year’s participants include University of Denver, University of Texas Rio Grande Valley, Boston University, Florida International University, Michigan State University, Columbia University, Morgan State University, Howard University, New York University and Penn State University.
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.
It has an outdoor pool and more than 26,000 square feet of meeting space, Stonebridge said in a statement. The downtown Dallas property is near Main Street Garden Park, the Arts District, the Kay Bailey Hutchison Convention Center, Deep Ellum, Klyde Warren Park, and the Dallas World Aquarium.
“The Statler is an extraordinary asset with a storied history in Dallas, and we are thrilled to welcome it to our managed portfolio,” said Rob Smith, Stonebridge’s president and CEO. “Its blend of modern hospitality with timeless character makes it a natural fit within our lifestyle collection. We look forward to honoring the property’s legacy while enhancing performance and delivering an elevated guest experience.”
Stonebridge, based in Denver, is a privately held hotel management company founded by Chairman Navin Dimond and led by Smith. The company recently added the 244-room Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service portfolio.
Peachtree secured EB-5 approval for a Florida multifamily development project.
The 240-unit community in Manatee County is backed by $47 million in construction financing.
It is Peachtree’s fourth EB-5 project approval since launching the program in 2023.
PEACHTREE GROUP RECENTLY secured EB-5 approval from U.S. Citizenship and Immigration Services for Madison Bradenton, a 240-unit multifamily development in Bradenton, Florida. It also raised $47 million in construction financing with a four-year term for the project on a 10.7-acre site in Manatee County.
The approval allows the company to advance its EB-5 Immigrant Investor Program, which directs foreign investment to U.S. job creation, Peachtree said in a statement.
“Madison Bradenton reflects the strong demand for high-quality multifamily housing in growing markets,” said Adam Greene, Peachtree’s executive vice president of EB-5. “This project underscores our ability to pair EB-5 financing with secured lending, delivering attractive opportunities for investors while meeting critical housing needs.”
The project will include five four-story apartment buildings with elevators, a two-story carriage building and a clubhouse, with residences averaging 1,027 square feet and featuring private patios or balconies. The location provides access to employment centers, healthcare facilities and Siesta Key Beach.
Atlanta-based Peachtree is led by Greg Friedman, managing principal and CEO; Jatin Desai, managing principal and CFO and Mitul Patel, principal.
This is Peachtree’s fourth approved I-956F application, following projects such as Home2 Suites by Hilton in Boone, North Carolina; SpringHill Suites by Marriott in Bryce Canyon, Utah and TownePlace Suites by Marriott in Palmdale, California. In May, Peachtree secured USCIS approval for four regional centers—South, Northeast, Midwest and West—allowing it to sponsor EB-5 projects in those territories.
The EB-5 visa program allows foreign investors to obtain a green card by investing in a U.S. commercial enterprise that creates jobs, the statement said. Investors who contribute at least $800,000 to a project that creates or preserves 10 full-time jobs for U.S. workers are eligible for permanent residency.
Separately, Peachtree launched the $250 million Special Situations Fund to invest in hotel and commercial real estate assets affected by capital market illiquidity.