US: The Highland Group, which provides consulting services to the lodging sector, has said the extended stay sector is seeing a full recovery.
The Group said that June’s summer travel surge accelerated upscale extended stay hotel’s recovery indices more than economy and mid-price extended-stay hotels.
Mark Skinner, Partner at The Highland Group said: “The summer travel season is accelerating the upscale extended-stay hotel segment’s full recovery back to 2019.”
The upscale segment’s 80.5 per cent average occupancy in June 2022 was the first time it has exceeded mid-price extended-stay hotel occupancy since the onset of the pandemic.
June was also the third consecutive month that upscale extended-stay hotel average rate was higher than its corresponding nominal value in 2019.
The overall hotel industry lost far more revenue than extended stay hotels in 2020 and 2021, so it is now recovering revenue more quickly, although the gap is narrowing as the overall hotel industry’s recovery catches up with extended-stay hotels. STR reports all hotel room revenue was up 29 per cent in June 2022 compared to one year ago.
In May this year The Highland Group reported US extended stay hotel ADR increased 30 per cent.
