Vishnu Rageev R is a journalist with more than 15 years of experience in business journalism. Before joining Asian Media Group in 2022, he worked with BW Businessworld, IMAGES Group, exchange4media Group, DC Books, and Dhanam Publications in India. His coverage includes industry analysis, market trends and corporate developments, focusing on retail, real estate and hospitality. As a senior journalist with Asian Hospitality, he covers the U.S. hospitality industry. He is from Kerala, a state in South India.
REVPAR FOR U.S extended-stay economy, mid-scale and upscale segments is recovering back to pre-pandemic levels, according to a report from consulting firm The Highland Group. Total extended-stay hotel occupancy is very close to the first quarter levels reported in 2016 and 2017 but below its peak years since 2015.
“Overall, first quarter extended-stay hotel ADR was the highest ever reported in 2023 and all three segments have more than fully recovered their 2019 nominal ADR values,” the report said.
In its “2023 First Quarter U.S. Extended-Stay Hotels Report,” Highland said the economy and mid-price extended-stay hotels made considerable gains in RevPAR relative to corresponding classes of all hotels between 2019 and 2023.
Due to high concentration of rooms in urban markets, upscale extended-stay hotels have seen RevPAR decline slightly relative to all upscale class hotels. However, the gap is expected to narrow as urban markets make a full recovery, the report noted.
“Rising interest rates and construction costs, as well as tightening loan underwriting, means extended-stay supply growth should be relatively low nationally for two to three years. Assuming the overall hotel industry does not endure a correction, extended-stay hotels should set more new performance records during the near term at least,” says Mark Skinner, partner at The Highland Group.
In the fourth quarter of 2022, U.S. extended-stay hotels set new records for demand, ADR, RevPAR and room revenues. Mid-price and upscale extended-stay hotel segments reported record high demand during the quarter, The Highland report showed in February.
Occupancy peaks
According to the report, total extended-stay hotel occupancy is very close to the first quarter levels reported in 2016 and 2017 but below its peak years since 2015. In 2023, mid-scale extended-stay hotels reported their highest first quarter average occupancy in more than 20 years.
The pandemic had a far greater impact on mid-scale and upscale segment occupancy with the latter growing the fastest over the last two years, the report said.
“Upscale is the only extended-stay segment not to have recovered occupancy to 2019 and it remains under its first quarter level from 2016 through 2019,” he said.
Additionally, although economy extended-stay segment first quarter occupancy surpassed 2019 last year, the decline over the last 12 months means first quarter 2023 occupancy was the segment’s lowest since 2010, the report revealed.
ADR zooms
Overall, first quarter extended-stay hotel ADR was the highest ever reported in 2023 and all three segments have more than fully recovered their 2019 nominal ADR values.
Although recent economy segment ADR gains have not been as rapid as mid-scale or upscale segments, at 25.4 percent, its ADR growth since 2019 is the largest and it was the only segment to not report an ADR decline in first quarter 2020 compared to the previous year, the report further said.
Consistent with the overall hotel industry, extended-stay hotel quarterly RevPAR growth is slowing compared to the first half of 2022, the report said, adding that the 12.3 percent gain in first quarter was a slight uptick on RevPAR increases in the second half of last year.
New trends
Extended-stay hotel’s occupancy premium above the overall hotel industry averaged 11.6 percentage points from 2016 through 2019, which is typical over the last 25 years.
“The premium tends to rise during contractionary periods, and it widened during the pandemic-induced downturn, peaking at 20 percent in first quarter 2021, and posting a 13-percentage point premium in first quarter 2023,” Highland said.
Extended-stay hotels increased ADR slightly faster than the overall hotel industry from 2016 through 2019. Relative growth accelerated in 2021 with the ratio peaking at 83 percent before declining to 77 percent in first quarter 2022 as the overall hotel industry recovered ADR more quickly due to much deeper losses during the pandemic, it added.
Relative RevPAR followed a similar trajectory, accelerating gains made from 2016 through 2019 and peaking at a ratio of 119 percent in first quarter 2021. As the overall hotel industry recovered RevPAR more quickly, extended-stay hotel’s RevPAR ratio declined to 95 percent in first quarter 2023 which is the same as in 2019, Highland data showed.
Advantage economy
Economy extended-stay hotel’s 123 per cent RevPAR recovery ratio compared to 2019 is the highest in the hotel industry. The segment, which was the first to report a full rebound in 2021, led the recovery through 2022 and made considerable gains against economy hotels overall, according to Highland.
The report said mid-scale extended-stay hotels have made significant gains when compared to all mid-scale hotels.
“In the first quarter of 2019, the ratio of mid-scale extended-stay hotel RevPAR to all mid-scale hotel RevPAR was 102 percent,” the report said. “Four years later it was 109 percent despite far higher supply growth over the period.”
Upscale extended-stay hotels lagged in overall extended-stay recovery mainly because of a relatively high concentration of rooms in urban sub-markets, the report said.
“At 105.8 percent RevPAR recovery, this segment is slightly behind all upscale hotels,” it said. “Upscale extended-stay hotels have also recorded a small decline in RevPAR relative to all upscale hotels since 2019.”
Rooms tally
According to Highland, there were 572,740 extended-stay hotel rooms open at the end of the first quarter 2023. Excluding 2020, which the pandemic distorted, the 8,344 net gain in rooms open over the last year was the lowest annual increase since 2012 and less than half the gain in 2022 compared to 2021.
“Room nights available increased 1.5 percent over the last year. Quarterly supply comparisons are still impacted by 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,” the report said.
This will dissipate later in 2023 but the full year increase in supply compared to 2022 will remain well below the long-term average. “Mid-price and upscale extended-stay hotel segments reported record high demand in first quarter 2023 with total extended-stay demand increasing at almost twice the rate of supply over the last 12 months,” the report further added.
However, generally consistent with all economy class hotels, economy extended-stay segment demand declined 2.2 percent in first quarter 2023 compared to the same period last year. The strongest ADR increases ever reported over the last two years are likely to have contributed to the decline in economy segment demand, Highland noted.
Although it had the slowest revenue gain over the last year, in 2023 the economy extended-stay segment reported its fourteenth consecutive record for first quarter revenues. Mid-price and upscale segments recorded their second successive record for first quarter revenues.
At almost 14 percent, the total extended-stay hotel quarterly revenue gain is one of the smallest over the last two years and similar to rates of increase made during the period the third quarter of 2014 through 2015’s third quarter, the report said.
Peachtree adds six hotels to third-party platform.
Five are owned by La Posada Group, one by Decatur Properties.
Third-party portfolio totals 42 hotels.
PEACHTREE GROUP’S HOSPITALITY management division added six hotels to its third-party management platform. Five are owned by La Posada Group LLC and one by Decatur Properties Holdings.
La Posada’s hotels include Fairfield Inn Evansville East in Evansville, Indiana; Fairfield Inn Las Cruces and TownePlace Suites Las Cruces in Las Cruces, New Mexico; and SpringHill Suites Lawrence Downtown and TownePlace Suites Kansas City Overland Park in Kansas, Peachtree said in a statement.
It also assumed management of Decatur Properties’ Hampton Inn in Monahans, Texas.
“Our third-party management business is experiencing growth and these six hotels demonstrate the trust owners are placing in our team,” said Vickie Callahan, president of Peachtree’s hospitality management division. “We have experience managing hotels and managing operations for partners who have entrusted us with their assets. We are committed to protecting asset value, driving results for partners and delivering a strong guest experience.”
The division manages hotels across brands and markets nationwide, the statement said. It operates 115 hotels across 29 brands with 14,212 rooms in 27 states and Washington, D.C. The additions bring its total third-party operations to 42 hotels.
Callahan said the team uses scale, operating systems and brand relationships to optimize revenue, control costs and improve guest satisfaction.
Atlanta-based Peachtree is led by Greg Friedman, managing principal and CEO; Jatin Desai, managing principal and CFO and Mitul Patel, principal.
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The Highland Group: Extended-stay occupancy, RevPAR and ADR declined in August.
Room revenue rose 0.4 percent, while demand increased 2.2 percent.
August marked the second time in 47 months that supply growth exceeded 4 percent.
U.S. EXTENDED-STAY OCCUPANCY fell 2.1 percent in August, its eighth consecutive monthly decline, while ADR declined 1.8 percent and RevPAR dropped 3.9 percent for the fifth consecutive month, according to The Highland Group. However, total extended-stay room revenue rose 0.4 percent year over year.
The Highland Group’s “US Extended-Stay Hotels Bulletin: August 2025” noted that summer leisure travel has a greater impact on the overall hotel industry than on extended-stay hotels.
“August’s performance metrics further indicated that economy extended-stay hotels are weathering the hotel industry downturn better than most hotel classes, especially at lower price points,” said Mark Skinner, The Highland Group partner.
The 2.1 percent drop in extended-stay hotel occupancy in August was the eighth straight month of decline, the report said. Occupancy declined more than the 1.3 percent drop STR/CoStar reported for all hotels. However, extended-stay occupancy was 11.3 percentage points higher than the overall hotel industry, consistent with long-term late-summer trends.
The 1.8 percent decline in extended-stay ADR was partly due to a larger share of economy supply in August 2025 versus August 2024, the report said. Economy extended-stay ADR fell for the first time since May 2024 but outperformed the 3.4 percent drop for all economy hotels reported by STR/CoStar. Mid-price extended-stay ADR also declined, while upscale extended-stay ADR fell more than upscale hotels overall.
RevPAR fell 3.9 percent in August, the fifth straight monthly decline and the largest in 2025. The overall drop was greater than individual segment decreases because economy supply made up a larger share than in August 2024. STR/CoStar reported RevPAR declines of 5.7 percent for economy, 2.6 percent for mid-price and 2 percent for upscale hotels.
Revenue, demand and supply trends
Extended-stay room revenue rose 0.4 percent in August from a year earlier, The Highland Group said. STR/CoStar reported overall hotel revenue fell 0.1 percent and excluding luxury and upper-upscale segments, revenue fell 2 percent. STR/CoStar also reported August room revenue declines of 6.4 percent for economy hotels, 1.4 percent for midscale and 0.7 percent for upscale compared to August 2024.
Extended-stay demand rose 2.2 percent in August, the second-largest monthly increase in seven months. STR/CoStar reported total hotel demand fell 0.4 percent. Adjusting for the extra day in February 2024, extended-stay demand has grown in 32 of the past 33 months.
August was the second time in 47 months that supply growth exceeded 4 percent, the report said. Supply has risen about 3 percent year to date. Annual supply growth ranged from 1.8 to 3.1 percent over the past three years, below the long-term 4.9 percent average.
The 8 percent rise in economy extended-stay supply, with minimal change in mid-price and upscale rooms, is mainly due to conversions, as new economy construction accounts for about 3–4 percent of rooms compared to a year ago.
The Highland Group reported that economy, mid-price and upscale extended-stay segments led first-quarter 2025 RevPAR growth over their class counterparts. The report noted 602,980 extended-stay rooms at quarter-end, a net gain of 17,588 rooms over the past year, the largest in three years.
AHLA Foundation distributed $710,000 in scholarships to 246 students.
Nearly 90 percent of recipients come from underrepresented communities.
The foundation funds students pursuing education and careers in the lodging sector.
AHLA FOUNDATION DISTRIBUTED $710,000 in academic scholarships to 246 students at 64 schools nationwide for the 2025–2026 academic year. Nearly 90 percent of recipients are from underrepresented communities, reflecting the foundation’s focus on expanding access to hospitality careers.
The foundation awards academic scholarships annually to students in hospitality management and related programs, it said in a statement.
“Our scholarship program is helping ensure the next generation of talent has the resources to pursue careers in the hospitality industry,” said Kevin Carey, AHLA Foundation's president and CEO. “We’ve invested millions of dollars over the last several decades to recruit and support future leaders who will strengthen our industry.”
It provides funding to help students pursue education and careers in the lodging sector, the statement said. Award decisions are based on applicants’ academic performance, extracurricular involvement, recommendations and financial need.
In September, AHLA Foundation, the International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration announced plans to expand education opportunities for hospitality students. The alliance aim to provide data, faculty development and student engagement opportunities.
The U.S. government shut down at midnight after Congress failed to agree on funding.
About 750,000 federal employees will be furloughed daily, costing $400 million.
Key immigration and labor programs are halted.
THE FEDERAL GOVERNMENT shut down at midnight after Republicans and Democrats failed to agree on funding. Disputes over healthcare subsidies and spending priorities left both sides unwilling to accept responsibility.
The shutdown could cost America’s travel economy $1 billion a week, the U.S. Travel Association said previously. It will disrupt federal agencies, including the Transportation Security Administration and hurt the travel economy, USTA CEO Geoff Freeman wrote in a Sept. 25 letter to Congress.
“A shutdown is a wholly preventable blow to America’s travel economy—costing $1 billion each week—and affecting millions of travelers and businesses while straining an already overextended federal travel workforce,” Freeman said. “While Congress recently provided a $12.5 billion down payment to modernize our nation’s air travel system and improve safety and efficiency, this modernization will stop in the event of a shutdown.”
USTA said that halting air traffic controller hiring and training would worsen a nationwide shortage of more than 2,800 controllers and further strain the air travel system.
About 750,000 federal workers are expected to be furloughed each day at a cost of about $400 million, according to the Congressional Budget Office. Essential services to protect life and property remain operational, CNN reported. The Department of Education said most of its staff will be furloughed, while the Department of Homeland Security will continue much of its work. Agencies released contingency plans before the deadline.
Immigration services are directly affected. Most U.S. Citizenship and Immigration Services operations continue because they are fee funded, but programs relying on appropriations—such as E-Verify, the Conrad 30 J-1 physician program and the special immigrant religious worker program—are suspended. Houston law firm Reddy Neumann Brown said employers must manually verify I-9 documents if E-Verify goes offline, though USCIS has historically extended compliance deadlines.
The Department of Labor will halt its Office of Foreign Labor Certification, freezing labor condition applications for H-1B visas, PERM applications and prevailing wage determinations, India’s Business Standard reported. Its FLAG system and related websites will also go offline. Immigration lawyers warn of ripple effects, since USCIS depends on DOL data. The Board of Alien Labor Certification Appeals and administrative law dockets will also pause.
Visa and passport services at U.S. consulates generally continue because they are fee funded. If revenue falls short at a post, services may be limited to emergencies and diplomatic needs.
Reuters reported that the disruption could delay the September jobs report, slow air travel, suspend scientific research, withhold pay from active-duty U.S. troops and disrupt other government operations. The funding standoff involves $1.7 trillion in discretionary agency spending—about one-quarter of the $7 trillion federal budget, according to Reuters. Most of the rest goes to health programs, retirement benefits and interest on the $37.5 trillion national debt.
According to The New York Times, unlike previous shutdowns, Trump is threatening long-term changes to the government if Democrats do not concede to demands, including firing workers and permanently cutting programs they support.
President Donald Trump will meet Congress as a shutdown looms.
Democrats say they are ready to negotiate a bipartisan deal.
Thousands of federal jobs and the U.S. travel economy are at risk if a shutdown occurs.
PRESIDENT DONALD TRUMP will meet Congressional leaders on Monday after Senate Democrats rejected a Republican stopgap spending bill to fund the government until Nov. 21. The U.S. Travel Association recently warned a government shutdown could cost the travel economy $1 billion a week.
Democrats want spending bills to reverse Trump’s Medicaid cuts, while Republicans want healthcare addressed in broader budget talks, according to Al Jazeera.
Senate Minority Leader Chuck Schumer, House Minority Leader Hakeem Jeffries, House Speaker Mike Johnson and Senate Majority Leader John Thune are expected to meet Trump at the White House.
“If it has to shut down, it’ll have to shut down. But they’re the ones that are shutting down government,” Trump told ABC News.
Democrats shifted the blame to Trump but also kept the door open to negotiations.
“President Trump has once again agreed to a meeting in the Oval Office,” the Democratic leaders said. “As we have repeatedly said, Democrats will meet anywhere, at any time and with anyone to negotiate a bipartisan spending agreement that meets the needs of the American people. We are resolute in our determination to avoid a government shutdown and address the Republican healthcare crisis. Time is running out.”
The government will shut down Wednesday if Congress doesn’t pass a short-term spending bill. The Senate could vote Monday on an extension Democrats previously rejected, The Wall Street Journal reported.
The White House warned that thousands of government jobs could be at risk if the government shuts down at midnight Tuesday. In a memo to federal agencies, the administration said Reduction-in-Force plans would go beyond standard furloughs, according to POLITICO.
Trump reportedly warned Sunday of widespread layoffs if the government shuts down this week.
“We are going to cut a lot of the people that … we’re able to cut on a permanent basis,” he said.
More than 100,000 federal employees could lose their jobs as early as Tuesday if the government shuts down, India’s Times Now reported.
A shutdown would disrupt federal agencies, including the TSA and hurt the travel economy, USTA CEO Geoff Freeman wrote in a Sept. 25 letter to Congress.
A recent Ipsos survey cited in the USTA letter found 60 percent of Americans would cancel or avoid air travel during a shutdown. About 81 percent said shutdowns harm the economy and inconvenience travelers and 88 percent said Congress should act across party lines to prevent one.