US: Extended stay occupancy rates continue to rise in the United States, nearly matching pre-pandemic levels.
According to a recent report from the Highland Group, the occupancy rates of extended stay properties in the United States this April nearly matched the rates of April 2019. Extended stay occupancy was at 75.5 per cent in the United States this April, only slightly below April 2019’s rate of 75.6 per cent. This statistic also improves upon the rate in March of this year, which was 73.6 per cent.
The report highlighted that the sector’s recovery after this recession has been much quicker than in past recessions.
The Highland Group said: “For comparison, it took about four years for extended-stay occupancy to recover to its previous high following the 2001/2 and 2008/9 recessions.”
Despite occupancy level rising, some statistics for the extended-stay sector still do not quite match pre-pandemic levels. Average daily rate and revenue for the sector, as well as the sector’s RevPAR are all below pre-pandemic numbers.
The average daily rate of an available extended-stay accommodation in April 2019 was $102.17, while this April’s average daily rate was only $90.42. Despite being lower than 2019’s numbers, this statistic is still an improvement from this March’s average daily rate of $85.69.
This April’s RevPAR totalled $68.31, while the RevPAR in April 2019 was $77.24. However, this number is up from March’s RevPAR of $63.11. Despite not quite reaching pre-pandemic levels, the RevPAR is still moving towards pre-recession rates at a much faster pace than in past recessions.
The report from the Highland Group said: “With economy extended-stay hotel monthly RevPAR already 13 percent higher than two years ago, coupled with rapid gains in mid-price and upscale segment RevPAR recovery indices, the RevPAR recovery is about double the pace compared to the past two downturns.”
