US: A report by hospitality consultancy and research firm The Highland Group has revealed a slight drop in RevPar growth for the US extended-stay hotel sector.
At 4.2 per cent over the last year, Q3 2013 RevPar growth for extended-stay hotels was the slowest Q3 increase since the 2008/9 recession. The report found that occupancy remained essentially flat for the first nine months of 2013 compared to the same period in 2012 and average rate drove almost the entire increase in RevPar.
Highland Group predicts that extended-stay hotel rates will rise four to five per cent in 2014 and says there is little concern about new room supply until well into the year. In a low inflationary environment, extended-stay RevPar gains of four to five per cent are expected in the near term.
Mark Skinner, partner at The Highland Group, said: “With extended-stay hotel occupancy stabilising around recent peak levels, ADR growth is by far the dominant driver of RevPar increases as extended-stay hotels enter the mature phase of the cycle. As new room supply is not a concern nationally until well into 2014, real RevPar increases should continue during the near term.”
The report studied a wide range of branded and independent US extended-stay operators at the upscale, mid-price and economy segments. It defines an extended-stay hotel as a property with a fully equipped kitchenette in each guest room, which accepts reservations and does not require a lease. Extended-stay is defined as a stay of five nights or longer.
The US Extended-Stay Lodging Report: Third Quarter 2013 is available from the Highland Group for $245.
www.highland-group.net</p
