Second-quarter U.S.
extended-stay revenue per available room rose 4.2 percent year over year, the
highest quarterly gain since the first quarter of 2023, according to a new
report from The Highland Group.
The second-quarter U.S.
extended-stay RevPAR hit $97.67, fueled by a 5.8 percent RevPAR increase in
June amid the FIFA World Cup. Much of that Q2 growth was driven by average
daily rate, which rose 2.8 percent year over year to $126.41 across all extended-stay
tiers, the highest quarterly increase since Q3 2023, according to Highland.
Broken down by tier, ADR increased 3.7 percent in midprice, 3.3 percent in
upscale and 1.5 percent in economy.
Second-quarter occupancy
at U.S. extended-stay hotels clicked up a more modest 1.4 percent year over
year to 77.3 percent, led by the midprice tier with a 1.8 percent occupancy
rise. Highland noted in its report the second-quarter occupancy growth was lower
than most Q2s since 2019.
Second-quarter
extended-stay hotel demand, in terms of total room nights sold, rose 6 percent
year over year, outpacing a 4.6 percent supply increase to about 115,800 rooms
as of June 30.
"Strong demand growth
coupled with a substantial decline in new rooms under construction are very
good indicators that extended-stay hotel RevPAR will continue to grow during
the foreseeable future," Mark Skinner, partner at The Highland Group, said
in a statement.