In February, total extended-stay hotel average rate posted its first monthly decline since rates began rising in April 2021. Extended-stay hotel RevPar followed a similar path and declined for the third consecutive month. However, extended-stay hotel demand recorded its strongest monthly gain in one year and occupancy increased after declining for 10 straight months.
“Strong demand growth and an increase in occupancy are good signs in this year’s difficult start for extended-stay hotels,” Mark Skinner, partner at The Highland Group, said in a statement.