US: Lodging consultancy The Highland Group in partnership with hotel data analytics company Kalibri Labs have released a report on extended-stay revenues in hotels.
Extended-stay room revenues are generally higher in traditional hotels than in extended-stay hotels, sitting at around 21 per cent more.
For the 12 month period ending June 2023, guest room revenue (for seven consecutive nights or longer) accounted for $8.97 billion at traditional hotels. This figure compares to $7.39 billion in room revenue for extended-stay hotels.
Corresponding room nights accommodated were 74.3 million and 72.2 million respectively.
Nationally, the share of long stay demand in extended-stay hotels (ESOC) is 53 per cent. In traditional hotels, ESOC is 13 per cent however there are 10 times as many rooms compared to extended-stay hotels.
Mark Skinner, partner at The Highland Group, said: “Traditional hotels are still accommodating more extended-stay demand than extended-stay hotels despite the latter’s substantial gains in market share over the last 25 years.”
Mark Kren, director of real estate and investment reporting at Kalibri Labs, added: “Despite the growth in extended stay during the pandemic, in the current lodging environment we expect continued expansion of this segment for the foreseeable future.”
The full report – The 50 Largest Markets: ALOS, ESOC and More Report 2019-2013 – extended-stay demand, revenues, length of stay, booking lead time and reservation costs. It is available to purchase here.
