US: The Highland Group has released findings, which shows extended stay hotel demand falling as rates increase faster than hotel industry.
According to the consulting group, for the first time in more than two years, economy, mid-price and upscale extended stay hotels all reported monthly declines in demand compared to the prior year.
Extended stay hotel segments reported demand declines from 0.8 per cent to 2.5 per cent as rates increased faster than corresponding classes of all hotels.
This compares to STR reporting a 1.6 per cent increase in overall hotel demand. Monthly increases in RevPar were about the same for extended stay hotels and the overall hotel industry in July.
Mark Skinner, Partner at The Highland Group said: “The long term trend of generally similar monthly changes in RevPar between extended stay hotels and the overall hotel industry has resumed for the first time since the pandemic began.”
The Highland Group provides consulting services to developers, franchisors, investors, lenders, and others with interests in the lodging industry.
Over the summer the group reported 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, said in August: “The summer travel season is accelerating the upscale extended stay hotel segment’s full recovery back to 2019.”
