Skip to content

Search

Latest Stories

Report: U.S. extended-stay hotels on recovery path in Q4 2021

December also saw a strong performance as revenue increased across segments

Report: U.S. extended-stay hotels on recovery path in Q4 2021

DEMAND FOR U.S. extended-stay hotels in the fourth quarter of 2021 was more than five times greater than supply, resulting in overall occupancy just below its 2019 peak, according to the Highland Group. December’s monthly report from the group also showed the segment to be firmly in recovery.

According to the research consulting firm’s “U.S. Extended-stay Hotels: Fourth quarter 2021” report, the bottom up recovery continues with economy and mid-price extended-stay hotels in the fourth quarter posting record nominal average rate and RevPAR.


Demand in the fourth quarter is at a record high and room revenues are almost 97 percent of their nominal high reached during the same period in 2019, the report said.

Occupancy and ADR remain 4 to 5 percentage points off previous high levels but should pick up in the near term as the demand change was six times the corresponding change in supply, it added.

"Supply gain at 3.8 percent was the slowest quarterly increase for all quarters since 2015. The recent supply growth rate in the economy segment is generally consistent with the segment’s average gain over the last six years. However, mid-price and upscale segment supply growth has fallen well below their six-year average," the report said. "All extended-stay hotel segments reported demand growth. The upscale segment recorded the largest disparity with demand growth running close to nine times its average fourth quarter gain over the last six years."

According to the report, extended-stay room revenues are at an all-time high during the period and greater than 11 percent above the previous record two years ago. The mid-price segment has seen the strongest revenue recovery.

"At 72.8 percent, extended-stay hotel average occupancy was one of the highest fourth quarter values ever reported and almost 15 percentage points higher than the 57.9 percent STR reported for the overall hotel industry. Extended-stay hotels’ occupancy

premium compared to the overall hotel industry has stayed well above its longer-term average for the last two years. Only the upscale segment has ADR below its nominal Q4 value in 2019," the Highland Group report further said.

Extended-stay hotel RevPAR during the period was about 2 percent higher than its 2019 peak. According to STR, the overall hotel industry RevPAR was about 1 percent below the peak attained in the fourth quarter of 2019.

However, upscale extended-stay hotels are lagging with fourth quarter RevPAR about 10 percent lower than in 2019.

"One of the main reasons for this is the relatively high concentration of upscale extended-stay rooms in the urban sub-markets of gateway cities. While, upscale extended-stay hotel’s RevPAR recovery is ahead of all upscale hotels which STR reported at 12 percent below their 2019 levels in the fourth quarter," the report said.

Strong recovery finish in December

The “Highland Group US Extended-Stay Hotels Bulletin: December 2021” report said that extended-stay hotels registered a strong recovery finish in December last year compared to the last month of 2019.

According to the report, all three segments reported a monthly revenue recovery index above 100 percent for the first time in 2021 and all recovery indices except upscale segment occupancy were higher in December than in November.

ENEWS COVID 02 07 22 Highland Group Q4 2 According to the Highland Group report, all three segments reported a monthly revenue recovery index above 100 percent for the first time in 2021 and all recovery indices except upscale segment occupancy were higher in December than in November.

The collective recovery indices of U.S. extended-stay hotels exceeded 100 percent in November.

With the mid-price segment leading, ADR growth was the dominant driver of gains in nominal RevPAR but economy and mid-price segments also reported significant gains in occupancy indices in December, the report said.

"The 3.3 percent increase in extended-stay room supply in December is the lowest monthly gain last year. December’s supply change further indicated that midprice and upscale supply growth should be well below pre-pandemic levels during the near term," the report added.

STR reports all hotel room revenue was up 124 percent in December 2021 compared to a year ago.

"Extended-stay hotel demand exceeded 11 million room nights in December 2021, up 14 percent when compared to 2019. Overall hotel occupancy gained more than extended-stay hotels in December, decreasing extended-stay hotel’s occupancy premium to 14.6 percentage points. However, the premium remains above its long-term average," the report added.

"Mid-price extended-stay hotels continued to lead the ADR recovery in December. ADR recovery indices in December were at their highest monthly level in 2021. The upscale segment continued leading the extended-stay RevPAR recovery during the month. The

RevPAR growth in December 2021 compared to a year ago was more than doubled," the report further said.

More for you

Marriott Outdoor Collection

Marriott unveils 'Outdoor Collection'

Summary:

  • Marriott launches Outdoor Collection and Bonvoy Outdoors platform.
  • First two brands are Postcard Cabins and Trailborn Hotels.
  • Platform features 450+ hotels, 50,000 homes and activities.

MARRIOTT INTERNATIONAL RECENTLY launched the brand “Outdoor Collection by Marriott Bonvoy” and introduced “Marriott Bonvoy Outdoors,” a digital platform that lets travelers plan trips by destination or activity. The first two brands in the Outdoor Collection are Postcard Cabins and Trailborn Hotels.

Keep ReadingShow less
Peachtree adds six hotels to its third-party management platform
Photo credit: Peachtree Group

Peachtree picked to manage six hotels

Summary:

  • 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.

Keep ReadingShow less
Extended-stay hotel performance in the U.S. shows declines in occupancy, ADR, and RevPAR in August 2025

Report: Extended-stay metrics fall in August

Summary:

  • 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.

Keep ReadingShow less
AHLA Foundation scholarships

AHLA Foundation awards $710K in scholarships

Summary:

  • 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.

Keep ReadingShow less
Congressional deadlock shutters government
Photo by Kevin Dietsch/Getty Images

Congressional deadlock shutters government

Summary:

  • 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.

Keep ReadingShow less