US: The latest report from the Highland Group shows US extended stay occupancy rising in Q1 2018 despite 26,500 new rooms coming to market in the last year.
Continuing a five-quarter trend of demand growing faster than supply, US extended stay hotel occupancy rose a full percentage point and reached one of its highest first quarter levels in 17 years. More than 26,500 new extended stay rooms opened over the past year but demand growth was strong enough to lift average occupancy and continue accelerating ADR growth. Extended stay hotel RevPar increased 5.6 per cent in the first quarter of 2018 compared to the same period in 2017.
“Extended stay hotel occupancy above its long-term average, the strongest demand growth trend since the post-recession recovery and a plateau in the supply pipeline provide a solid foundation to absorb the record number of new rooms under construction,” said Mark Skinner, partner at The Highland Group.
