US: According to businesses development database Lodging Econometrics, developers in the US have more extended-stay projects in the pipeline than hotels.
Lodging Econometrics reported that in Q2 2023, developers increased their pipeline of extended-stay projects by 18 per cent year-over year. This brings potential construction volume to 2,083 projects representing 214,557 rooms in the US.
The growth tops other hotel segments including lifestyle, soft brands, full-service and limited-service properties. Whilst upper midscale hotels accounted for 2,112 projects, the number of rooms this will deliver (206,824) remain lower than those recorded for extended-stay developments.
In terms of brand expansion, Home2 Suites by Hilton represents the most popular (565 projects) followed by Marriott’s TownePlace Suites (345). Homewood Suites by Hilton also accounted for a large number of projects (258).
Hyatt Studios and Hilton’s Project H3 are recent brand additions within the extended-stay sector. Most recently, Marriott revealed plans to launch a midscale extended-stay brand known as Project MidX Studios.
Wyndham’s ECHO Suites brand which launched at the end of 2022 has since signed more than 200 hotels. According to Lodging Econometrics, Q2 tallied 18 projects for the brand.
Overall, middle tier brands account for 1,284 projects, followed by upper tier (630) and lower tier (169). If all rooms are delivered, this would represent 32.5 per cent of industry inventory.
