U.S. extended-stay rooms under construction as of June 30 decreased 7.7 percent year over year, The Highland Group reported. The company attributed rising construction costs and lengthening development time lines for the drop. Upscale extended-stay rooms under construction declined 21.3 percent, and midprice rooms declined 3.3 percent. Only the economy extended-stay segment saw a boost, as rooms under construction jumped 89 percent, from 2,380 to 4,501.
Total extended-stay supply increased by nearly 26,000 rooms, or 5.6 percent, over the past 12 months, but that rise was lower than the more than 29,000 rooms added in each of the previous two years.
Total extended-stay occupancy declined 0.1 percent year over year for the first half of the year to 76.5 percent. But during the second quarter, it rose 0.3 percent year over year to 79.9 percent, the highest second-quarter level ever reported. Average daily rate increased 1.2 percent year over year for the first half to $104.48. Revenue per available room increased 1.6 percent year over year in the second quarter and 1.1 percent for the first half of the year to $79.92.
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