Extended-stay hotels saw a notable performance lift in May, with demand rising 6.2 percent—the segment’s largest monthly increase since February 2022.
Growth was broad-based across the category. Economy, mid-price and upscale extended-stay segments all recorded occupancy gains during the month. In addition, RevPAR growth in the economy and mid-price tiers outpaced that of their corresponding classes across the broader hotel industry, underscoring the segment’s relative strength.
“The four-month trend of extended-stay demand growth above its long-term average is very encouraging, as supply increases are expected to stay below trend during the foreseeable future,” Mark Skinner, partner at The Highland Group, said in a statement.
The sustained demand momentum, coupled with constrained supply growth, continues to position the extended-stay segment as a standout performer within the lodging industry.