While extended-stay hotels in most large hotel markets have more than fully recovered pandemic-related RevPAR declines, five markets still have failed to achieve that milestone four years later. The worst impacted, San Francisco and San Jose, could not build on the massive RevPAR growth achieved in 2022, and in 2023 their reported respective extended-stay hotel RevPAR’s were still 16 percent and 26 percent below the 2019 nominal values.
Conversely, in 2023, extended-stay hotels in more than one third of the nation’s largest hotel markets achieved nominal RevPAR 20 percent or greater than in 2019.
“With increasing demand and low supply growth forecasted, the near term outlook for extended-stay hotels is very good in many MSAs,” Mark Skinner, partner at The Highland Group, said in a statement.