Skip to content

Search

Latest Stories

Report: U.S. extended-stay hotels’ performance up in June compared to 2019

However, demand was down more than 1 percent for third consecutive month

Report: U.S. extended-stay hotels’ performance up in June compared to 2019

ALL RECOVERY INDICES of U.S. extended-stay hotels were up in June compared to 2019 than in May, according to hotel investment advisors The Highland Group. But demand for economy extended-stay hotels declined 1.6 percent for the third consecutive month in June compared to same period last year due to strong increase in ADR over several months, the report added.

The U.S. Extended-Stay Hotels Bulletin: June 2022 by The Highland Group said that ADR growth decelerated for the third consecutive month in June, but it remained considerably higher than any other period before 2021.


RevPAR recovery for upscale extended-stay hotels was up 5 percent in June compared to May due to the summer travel surge. According to the report, economy extended-stay hotels led the RevPAR recovery compared to 2019 despite the decline in demand and occupancy.

"The 1.4 percent increase in extended-stay room supply in June is the third successive month supply growth was below 2 percent since 2013, excluding some of 2020,” the report said. “It is also the ninth consecutive month of 4 percent or lower supply growth. The increase in supply for this segment will be well below pre-pandemic levels during the near term."

The report noted that the gap in recovering revenue is narrowing as the overall hotel industry’s recovery catches up with extended-stay hotels. STR reported that all hotel room revenue was up 29 percent in June compared to last year.

"In June, mid-price and upscale extended-stay segments reported their lowest monthly change in demand this year. The second quarter demand for economy extended-stay segment was lower than the same quarter one year ago for the third consecutive month. This was only the second time the economy reported a quarterly fall in demand since 2013, except in 2020," the report said. "Overall hotel occupancy gained more than extended-stay hotels in June compared to 2021, decreasing extended-stay hotel’s occupancy premium to 10 percentage points. However, the premium remains within its long-term average range."

The ADR recovery was led by mid-price and upscale extended-stay hotels. The mid-price segment’s ADR recovery steadied in June but the upscale segment gained about 2 percent compared to May. Upscale extended-stay hotels more than fully regained ADR back to its nominal 2019 value for the third successive month, according to the report.

"Mid-price and upscale segments continued posting the strongest RevPAR growth over last year during the period. After slipping back below 100 percent in May, upscale extended-stay hotels once again reported higher nominal monthly RevPAR compared to 2019. The RevPAR growth in June compared to last year was greater but the gap continues to narrow," the report said.

More for you

Choice Hotels
Photo credit: Choice Hotels International

Choice posts $81.7M Q2 profit, 93K-room pipeline

Summary:

  • Choice Hotels International reported Q2 net income of $81.7 million.
  • Domestic RevPAR fell 2.9 percent due to macroeconomic conditions.
  • Extended-stay portfolio rose 10.5 percent YoY, with a domestic pipeline of 43,000 rooms.

CHOICE HOTELS INTERNATIONAL reported second-quarter net income of $81.7 million, down from $87.1 million a year earlier. Its forecast for the year remained positive, but was downgraded some to account for changes in macroeconomic conditions.

Keep ReadingShow less
Hotel exterior of Motel 6 Las Vegas under G6 Hospitality and Galaxy Hotels partnership
Photo credit: G6 Hospitality

G6, Galaxy aim to grow Motel 6, Studio 6

Summary:

  • G6 Hospitality and Galaxy Hotels Group are expanding Motel 6 and Studio 6 in the U.S.
  • Galaxy said G6 brands outperform others in guest satisfaction and value.
  • One Galaxy hotel generates $8–10M annually; the full G6 portfolio is expected to reach $50M.

G6 HOSPITALITY AND Galaxy Hotels Group are now working to expand the Motel 6 and Studio 6 footprint in the U.S. About 10 Galaxy-managed hotels, totaling more than 1,300 rooms, will operate under the G6 brands, with more to follow.

Keep ReadingShow less
Hotel industry leaders unite at AHLA Summit to support trafficking survivors
Photo credit: AHLA Foundation

AHLA Foundation hosts human trafficking summit

Summary:

  • AHLA Foundation held its No Room for Trafficking Summit and announced Survivor Fund grantees.
  • The summit featured expert panels and sessions on survivor employment and trafficking prevention.
  • Since 2023, the program has awarded more than $2.35 million to 27 organizations.

AHLA FOUNDATION RECENTLY held its annual “No Room for Trafficking Summit” to advance practices and reinforce the industry's commitment to addressing human trafficking through collaboration, education and survivor support. It also announced the 2025–2026 NRFT Survivor Fund grants, which support organizations providing services and resources for survivors.

Keep ReadingShow less
Fed interest rate July
Photo credit: Chip Somodevilla/Getty Images

Fed holds rates steady despite Trump pressure

Summary:

  • The Federal Reserve held interest rates steady and gave no signal of a September cut.
  • Developers and brokers are calling for lower borrowing costs to unlock supply and revive stalled deals.
  • The Fed’s decision followed surprise news that the U.S. economy grew 3 percent in Q2.

THE FEDERAL RESERVE held its key interest rate steady and gave no indication of a cut in September, despite growing pressure from President Trump and his Fed appointees, USA Today reported. The July 30 decision keeps the Fed’s benchmark rate at 4.25 percent to 4.5 percent for a fifth straight meeting.

Keep ReadingShow less
BWH Hotels expands with AI-driven strategy and outdoor lodging focus

BWH sticks to growth plan despite headwinds

Summary:

  • BWH Hotels is staying the course on long-term growth, investing in AI and developer support.
  • A new insurance program has saved some BWH hoteliers $50,000 to $60,000 annually.
  • It aims to reach 5,150 hotels in five years, with 300 deals signed last year and 200-plus in the pipeline.

BWH HOTELS IS maintaining its long-term growth strategy despite market uncertainties, with President and CEO Larry Cuculic citing momentum across core markets. The company is investing in AI, supporting developers and focusing on long-term goals.

Keep ReadingShow less