The three key performance indicators for the economy extended-stay segment of the U.S. lodging industry for March 2021 exceeded levels from March 2019, according to the latest report from The Highland Group.
The economy extended-stay segment's March 2021 revenue per available room was $38.46, which exceeded its March 2019 level of $37.60 by 2.3 percent. The latter had been the previous record high for the segment's March RevPAR, according to the company. March 2021 average daily rate was $47.96, slightly above the March 2019 rate of $47.56. March occupancy was up 1.4 percent over 2019 at 80.2 percent.
"Economy extended-stay hotels have restored RevPAR back to its previous record high in about half the time it took following the prior two downturns," said The Highland Group partner Mark Skinner.
Midscale and upscale extended-stay hotels reported March 2021 RevPAR totals that were 81 percent and 69 percent, respectively, of their March 2019 levels. Midscale extended-stay occupancy reached 71.9 percent, or 94.7 percent of 2019 levels. Though upscale occupancy was higher at 72.5 percent, that figure represents about 89.6 percent of the March 2019 level. Midscale ADR still is shy of recovery at 85.2 percent, while the upscale extended-stay segment is at just 76.7 percent of its March 2019 level.
March 2021 RevPAR for the overall extended-stay segment was $63.11, or 76 percent of the 2019 level. Average daily rate reached $85.89, or 81 percent of recovery levels, while occupancy was 73.6 percent compared with 78.5 percent in 2019.
Extended-stay supply in March grew 12.5 percent year over year, reflecting both new construction and the reopening of hotels closed during the pandemic, according to the report. Room night demand was up 41.2 percent compared with March 2020.