Third-quarter U.S. extended-stay revenue per available room increased 5.5 percent year over year, the highest quarterly gain in more than three years, according to a new report from The Highland Group.
U.S. extended-stay RevPAR reached $97.35 during the third quarter, driven mostly by a 3.6 percent year-over-year gain in average daily rate to $124.95. Broken down by tier, ADR increased 3.8 percent in midprice, 3.6 percent in upscale and 3.2 percent in economy.
Third-quarter occupancy at U.S. extended-stay hotels increased 1.8 percent year over year to 77.9 percent. By tier, upscale led with a 2.6 percent year-over-year increase in occupancy, followed by midprice at 1.8 percent, and economy at 0.3 percent.
"Extended-stay hotel average occupancy is expected to increase at least through the end of 2026," Mark Skinner, partner at The Highland Group, said in a statement, "and the near-term outlook for more gains in RevPAR is very good."
Third-quarter extended-stay hotel demand, in terms of total room nights sold, rose 6.4 percent year over year, the largest quarterly demand increase (excluding the 2020 recovery) since the fourth quarter of 2019, according to Highland. Supply increased 4.6 percent year over year to about 653,350 rooms as of Sept. 30.