US: The latest report from the Highland Group reveals the US extended stay sector saw increased supply and revenues in the year to September 30.
Room supply increased 7.6 per cent – or 35,404 rooms – over the past year, to a total of 500,166, the highest change in supply recorded for this segment. The growth in supply from new construction was the fastest in a decade.
Demand increased 7.7 per cent for Q3 2019, keeping pace with supply. The increase was the fastest since the first quarter 2018 and is ahead of the 1.8 per cent gain STR reported for the overall hotel industry. Year-over-year revenues rose 9.5 per cent for the quarter, to $3.95 billion.
Average daily rate rose 1.7 per cent, to $106.94, with the economy segment achieving the highest growth, at 2.7 per cent, for the second consecutive quarter.
RevPAR growth of 1.8 per cent was largely driven by the rise in ADR, while occupancy was up 0.1 per cent to 80.3 per cent for the quarter. This is the sixth straight third quarter that occupancy exceeded 80 per cent. Year-to-date occupancy remained flat at 77.8 per cent.
“The extended-stay hotel segment is in great shape to perform well during the cyclical slowdown which is widely forecast over the near term,” said Highland Group partner Mark Skinner.
