US: The latest Highland Group report reveals that extended stay hotel revenue and ADR growth set records in 2022.
The report that says that extended stay hotel supply, demand and revenues reached record highs in 2022 as new rooms under construction fell to an eight-year low. The sector saw the strongest yearly ADR gain on record resulting in $3.2 billion revenue on rooms, which increased in 2022 and was the second highest annual growth in 25 years. Other new extended stay hotel performance milestones were achieved in 2022 as medium-term supply growth forecasts declined well below historical annual average increases.
The Highland Group provides consulting services to developers, franchisors, investors, lenders, and others with interests in the lodging industry. Mark Skinner, partner at The Highland Group said: “Much will depend on the overall hotel industry with negative quarterly change in extended-stay hotel RevPar a distinct possibility, especially at lower price points in the first half of 2023; however, the longer-term outlook for extended-stay hotels remains very favourable.”
The hotel Group released a bulletin in March 2022 that also found that extended stay hotel ADR has increased 30 per cent, as supply growth fell to an eight year low.
