U.S. extended-stay hotels' third-quarter average daily rate and revenue per available room increased year over year while occupancy slipped, according to The Highland Group's latest report.
In Q3, overall U.S. extended-stay ADR was $120.37, up 2.3 percent year over year and the highest third-quarter figure since Highland began tracking in 2016.
Each extended-stay segment—economy, midscale and upscale— reported "record high" third-quarter results, according to Highland. Upscale ADR increased 2.7 percent year over year to $157.90, midscale increased 2.6 percent to $111.38, and economy increased 2.2 percent to $58.58. ADR "rate increases by segment are more closely aligned than during the last two years," according to the report.
U.S. extended-stay RevPAR—for the most part—also reported year-over-year growth, according to the report.
In Q3, overall U.S. extended-stay RevPAR was $94.06, up 1.6 percent year over year. This growth represents the smallest such gain since the first quarter of 2021, according to Highland, and potentially represents the "flattening" the company referred to in its Q2 report.
In the upscale sector, RevPAR was $125.30, up 3.3 percent year over year. Slightly below was the midscale sector, at $86.65 in Q3, up 2.4 percent. Economy was the only sector to see a slip in RevPAR at $44.73 in Q3, down 2.2 percent.
U.S. extended-stay occupancy also continued the downward trend in the third quarter, with most sectors slipping year over year.
Overall, Q3 U.S. extended-stay occupancy was 78.1 percent, down 0.7 percentage points year over year. Economy occupancy was 76.3 percent, down 4.3 percentage points, and midscale was 77.8 percent, down 0.2 percentage points.
Upscale occupancy was 79.4 percent, up 0.6 percentage points year over year and the only segment to show occupancy growth in Q3.
RELATED: Q2 U.S. extended-stay performance