The Highland Group reports that the industry has seen the first quarterly decline in extended-stay hotel RevPAR in three years, according to its 2024 First Quarter U.S. Extended-Stay Hotels report.
The 1.6 percent decline in extended-stay hotel RevPAR in Q1 2024 compared to the same period in 2023 was the first contraction since RevPAR started rising in April 2021. Lower priced extended-stay hotels led the decline but economy and mid-price segments made gains relative to corresponding classes of all hotels.
“If most forecasts for overall hotel industry performance are realized, extended-stay hotels are likely to reverse the trend of declining occupancy in the near future because demand has increased for 13 consecutive quarters and supply growth is very low,” Mark Skinner, partner at The Highland Group, said in a statement.