A 1% gain in revenue per available room (RevPAR) for extended-stay hotels in November was the smallest increase since July, according to a report from The Highland Group, a consultancy. Relatively small increases in average daily rate (ADR) across all three extended-stay hotel segments (economy, midprice and upscale) was the main reason for this, as November’s occupancy contraction was lower than that of the overall hotel industry.

Mark Skinner, partner at The Highland Group, said November’s 1.4% increase in extended-stay hotel demand was consistent with the general acceleration in extended-stay hotel demand increases following slower growth during the spring and summer of 2023.

Compared with the overall hotel industry, extended-stay performance in November was mixed. Extended-stay occupancy declined less than that of the total hotel industry in the month. It was 12.5 percentage points higher than the total hotel industry, which is within the historical long-term average occupancy premium for the segment.

November’s extended-stay ADR gain was about half the increase STR/CoStar reported for the overall hotel industry. November marked a period of more than two years that monthly total extended-stay ADR was higher than its nominal value in 2019. Image: Courtesy Marriott