Skip to content
Search

Latest Stories

Report: U.S. extended-stay hotel occupancy dips, while ADR and RevPAR surge in 2023

Report: U.S. extended-stay hotel occupancy dips, while ADR and RevPAR surge in 2023

U.S. EXTENDED-STAY HOTEL occupancy declined across 59 MSAs in 2023 compared to 2019, primarily due to significant ADR growth over the past three years, according to The Highland Group. Additionally, extended-stay hotel RevPAR surged in more than 80 percent of MSAs, with ten of them, including four major hotel markets, experiencing gains exceeding 10 percent.

Despite an 8 percent increase in the number of extended-stay hotel rooms under construction in the 100 largest MSAs over the past year, the figures remain below pre-pandemic levels, the report said.


The resurgence in occupancy was notably led by smaller markets, where strong ADR increases and supply expansion played pivotal roles in driving the lowest occupancy recovery indices for MSAs in 2023.

ADR, RevPAR growth strongholds 

ENEWS 03 06 24 Highland report ADR 1

Apart from Las Vegas, Phoenix, and Tampa-St. Petersburg, few of the 25 largest hotel markets ranked among those with the highest ADR recovery indices, The Highland Group said. Myrtle Beach maintained its top position for the third consecutive year, with ADR surging nearly 80 percent higher in 2023 compared to 2019.

In 2023, eight MSAs saw a decline in ADR compared to 2022, with two of them still below their 2019 levels. San Jose and San Francisco continued for the third consecutive year with the lowest ADR recovery indices compared to 2019. While experiencing a robust recovery similar to some smaller extended-stay hotel markets, the introduction of new higher-rated extended-stay supply also significantly contributed to the ADR surge.

ENEWS 03 06 24 Highland RevPAR

The report indicated that extended-stay hotel RevPAR surged in over 80 percent of MSAs in 2023. Notably, ten MSAs, including four major hotel markets, witnessed gains exceeding 10 percent. Despite being significantly impacted by the pandemic, markets such as New York, Boston, and Washington DC continued to register substantial RevPAR growth in 2023, mirroring trends from the previous year. However, San Jose experienced a slight decline in RevPAR, while San Francisco remained below its 2019 levels, standing out as exceptions.

The report forecasted a promising outlook for extended-stay hotels in the 100 largest markets in the near term. In 2023, RevPAR growth surpassed 5 percent in over one-third of MSAs, with 40 markets outperforming the national average of 4.2 percent for all extended-stay hotels.

Looking ahead, supply growth across the 100 MSAs in 2024 is projected to be among the lowest in recent years. Nearly one-third of MSAs anticipate growth of 5 percent or less, with over 40 MSAs expecting no supply growth in the near term.

MSA room supply trends

iStock 2022349660

Just under 12,800 extended-stay rooms were introduced to the 100 largest MSAs in 2023, marking a 3 percent increase, The Highland Group said. By year-end, extended-stay hotel companies reported 19,631 rooms under construction in these MSAs, reflecting an 8 percent rise compared to the previous year.

The report revealed that despite over 18,000 extended-stay rooms being under construction by the end of 2022, the net change in rooms open by the end of 2023 was less than 13,000. This trend reflects a lengthening hotel development timeline, along with instances of hotels no longer meeting brand standards, conversions to apartments, and municipalities acquiring extended-stay hotels for housing purposes.

With over three-quarters of extended-stay rooms concentrated in the 100 largest MSAs, these rooms represent over 10 percent of total room supply in 79 MSAs, with 33 MSAs having extended-stay rooms comprising 15 percent or more of all hotel rooms. Charleston, SC, Raleigh-Durham-Chapel Hill, and Salt Lake City boast the largest share of extended-stay rooms, while Myrtle Beach, Deltona-Daytona Beach, and Santa Rosa are among the most underrepresented MSAs.

According to the report, assuming all rooms under construction open by year-end and no existing rooms close, the absolute supply increase in 2024 would reach 4.4 percent. However, the actual increase is anticipated to be considerably lower.

Extended-stay room supply is projected to surge by 10 percent or more in 19 MSAs in 2024, with the most significant increases observed in smaller markets. Detroit stands out as the sole large hotel market expecting a greater than 10 percent rise in extended-stay supply in 2024, assuming all rooms under construction open by year-end.

The Highland Group recently reported a $1.1 billion surge in U.S. extended-stay hotel room revenues in 2023, closely matching figures from 2018 and 2019. Despite a slow pandemic recovery, all three extended-stay segments achieved record-high room revenues, with the upscale segment leading the trend.

More for you

AAHOACON25 in New Orleans, featuring 500 exhibitors and 5,000 attendees at the Ernest N. Morial Convention Center

AAHOACON25 leads to lasting partnerships

AAHOACON25: A Milestone Event for Hospitality

THE 2025 AAHOA Convention & Trade Show is over, but the partnerships announced during the show will go on. The theme of AAHOACON25 was "New Ideas, New Connections, New Orleans," and more than 5,000 registered attendees filled the New Orleans Ernest N. Morial Convention Center for the conference.

AAHOACON25 also had nearly 500 exhibitors occupying 85,000 square feet of exhibit space, according to AAHOA. The event featured around 20 education sessions, a do-it-yourself product demo experience known as The Garage on the Trade Show Floor, keynote speakers, and networking events, including the Block Party at Fulton Street.

Keep ReadingShow less
Asian Hospitality unveils inaugural ‘Women of Color Power List’

Asian Hospitality unveils inaugural ‘Women of Color Power List’

Women of Color Power List 2025 Debuts at AAHOACON 2025

ASIAN MEDIA GROUP USA, publisher of Asian Hospitality magazine, launched the first-ever “Women of Color Power List 2025” at the 2025 AAHOA Convention & Trade Show in New Orleans, honoring 51 women reshaping the U.S. hospitality industry. The publication is the first to spotlight the achievements of women of color, recognizing their resilience, innovation, and leadership.

Asian Media Group Managing Editor Kalpesh Solanki, Executive Editor Shailesh Solanki, and Chief Operating Officer Aditya Solanki announced the list during the conference.

Keep ReadingShow less
AAHOALending.com લોન્ચ 2025

AAHOA, બ્રિજ AAHOALending.com લોન્ચ કરે છે

AAHOA અને બ્રિજે AAHOALending.com ને AAHOACON 2025 માં રજૂ કર્યું

AAHOA અને બ્રિજે AAHOALending.com લોન્ચ કર્યું, જે હોસ્પિટાલિટી પર કેન્દ્રિત ડિજિટલ ધિરાણ પ્લેટફોર્મ છે. તે AAHOA સભ્યોને 150 થી વધુ ધિરાણકર્તાઓની ઍક્સેસ પ્રદાન કરે છે, જેમાં વધુને વધુ લોકોને નિયમિતપણે ઉમેરવાની યોજના છે, આ પ્લેટફોર્મ વપરાશકર્તાઓને ધિરાણ વિકલ્પોની તુલના કરવાની, શ્રેષ્ઠ દરો અને સુરક્ષિત ભંડોળ શોધવાની મંજૂરી આપે છે.

કોફાઉન્ડર અને CEO રોહિત માથુરની આગેવાની હેઠળના બ્રિજને ક્લબ બ્લુ ઇન્ડસ્ટ્રી પાર્ટનર તરીકે નિયુક્ત કરવામાં આવ્યા છે, જે AAHOAના પ્રોગ્રામમાં સર્વોચ્ચ સ્તર છે, તેના 300 ભાગીદારોમાંથી માત્ર 12 જ લાયકાત ધરાવે છે, એમ બંનેએ સંયુક્ત નિવેદનમાં જણાવ્યું હતું.

Keep ReadingShow less
2025માં મંદીની સંભાવના 50 ટકા : HAMA સર્વે

2025માં મંદીની સંભાવના 50 ટકા : HAMA સર્વે

HAMA 2025 સર્વે: 49% મેનેજર્સ મંદીની આશંકા ધરાવે છે

હોસ્પિટાલિટી એસેટ મેનેજર્સ એસોસિએશનના સ્પ્રિંગ 2025 ઇન્ડસ્ટ્રી આઉટલુક સર્વેક્ષણમાં અંદાજે 49 ટકા ઉત્તરદાતાઓ 2025 માં અમેરિકામાં મંદીની અપેક્ષા રાખે છે, જે 2024ના પાનખર સર્વેક્ષણમાં 19 ટકાથી વધુ છે. ટોચની ત્રણ ચિંતાઓ માંગ, ટેરિફ અને DOGE કટ અને વેતનમાં વધારો વચ્ચેનો જોડાણ છે.

HAMA સર્વેક્ષણમાં જાણવા મળ્યું છે કે લગભગ 55 ટકા ઉત્તરદાતાઓએ તેમની વર્તમાન વ્યૂહરચનાના ભાગ રૂપે બ્રાન્ડ અથવા મેનેજમેન્ટ ફેરફારો કર્યા છે અથવા કરવાની યોજના બનાવી છે.

Keep ReadingShow less
AAHOA Bridge AAHOALending 2025

AAHOA, Bridge launch AAHOALending.com

AAHOA and Bridge Unveil AAHOALending.com at AAHOACON 2025

AAHOA AND BRIDGE launched AAHOALending.com, a digital lending platform focused on hospitality. It offers AAHOA members access to more than 150 lenders, with plans to add more regularly, while allowing users to compare financing options, find the best rates and secure funding.

Bridge, led by Cofounder and CEO Rohit Mathur, has been named a Club Blue Industry Partner, the highest level in AAHOA’s program, with only 12 of its 300 partners qualifying, the duo said in a joint statement.

Keep ReadingShow less