Skip to content

Search

Latest Stories

Report: U.S. extended-stay room supply grew 3 percent in September

It marked 36 straight months of 4 percent or less supply growth

Report: U.S. extended-stay room supply grew 3 percent in September

U.S. EXTENDED-STAY ROOM supply increased 3 percent in September, outpacing the average monthly growth of the past two years, according to The Highland Group. This rise partly reflects the addition of WaterWalk by Wyndham, a mid-price extended-stay brand included in the database in May 2024 after its Wyndham affiliation.

September marked 36 consecutive months of 4 percent or less supply growth, with annual supply change under 2 percent for two years—both below the long-term average, as revealed in The Highland Group's U.S. Extended-Stay Hotels Bulletin: September 2024. A 10.9 percent rise in economy extended-stay supply, along with modest gains in mid-price and upscale rooms, is largely due to conversions, as new economy construction represents only about 3 percent of rooms open compared to last year.


Supply change comparisons have been affected by rebranding shifts between segments, hotel de-flagging for non-compliance with brand standards, and sales to multi-family apartment companies and municipalities.

“September was a mixed month for extended-stay hotels as demand growth lagged the change in supply and the increase in ADR was not enough to stop RevPAR contracting for the first time in six months,” said Mark Skinner, The Highland Group’s partner.

Revenue and demand growth

Extended-stay hotels saw a 1.6 percent increase in room revenue in September, marking the sixth consecutive monthly gain. While this was the smallest increase in six months, it outperformed the 0.4 percent decline reported by STR/CoStar for the broader hotel industry, The Highland Group said.

Extended-stay demand rose 1.1 percent in September, marking positive growth in 21 of the past 22 months. In contrast, STR/CoStar reported a 1.5 percent decline in overall hotel demand for September.

Trends in key metrics

September saw the first decline in extended-stay occupancy in six months, though it was smaller than the 2.5 percent drop reported by STR/CoStar for all hotels. Extended-stay occupancy remained 11.1 percentage points above the overall hotel industry, the report said.

After declines in February and March—the first in three years—extended-stay ADR rose for the sixth straight month in September, though the increase was the smallest in this period and below the 1.2 percent rise reported by STR/CoStar for all hotels. Among comparable classes, only upscale extended-stay ADR lagged slightly in September by 0.2 percent.

After five consecutive months of gains, extended-stay RevPAR fell 1.4 percent in September, slightly exceeding the 1.3 percent decline for the total hotel industry estimated by STR/CoStar, the report said. Economy extended-stay hotels saw the largest RevPAR drop after two months of modest gains, though this decrease was much smaller than the 6.1 percent fall reported for all economy hotels by STR/CoStar.

The Highland Group reported that U.S. extended-stay room supply grew 3.3 percent in August, surpassing the two-year average monthly growth.

More for you

Peachtree Funds Rio Las Vegas Renovations | $176M CPACE Loan
Photo credit: Hyatt Hotels Corp.

Peachtree originates retroactive CPACE loan for Rio Vegas

Summary:

  • 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.

Keep ReadingShow less
Global hotel construction pipeline reaches record 15,871 projects in Q2 2025, with U.S. and Dallas leading growth
Photo Credit: iStock

Report: Global pipeline hits 15,871 projects

Summary:

  • 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.

Keep ReadingShow less
HAMA Launches 20th Student Case Competition in USA
Photo Credit: iStock

HAMA launches 20th student case competition

Summary:

  • 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.

Keep ReadingShow less
Stonebridge hotel management expansion
Photo credit: Stonebridge Cos.

Stonebridge adds Statler Dallas to managed portfolio

Summary:

  • 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.

Keep ReadingShow less
Peachtree EB-5 approval
Photo credit: Peachtree Group

Peachtree’s FL development gets EB-5 approval

Summary:

  • 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.

Keep ReadingShow less