NATIONAL REPORT—According to the “2019 First Quarter U.S. Extended-Stay Lodging Market Report” from The Highland Group, the 27,000-plus new extended-stay hotel rooms opening over the last year were the second highest ever reported.
Quarterly supply growth exceeded the change in demand for only the second time since Q3 2017. The resultant slight decline in occupancy coupled with declining ADR growth produced the smallest quarterly gain in RevPAR in the last nine years.
“Decelerating extended-stay hotel ADR and RevPAR growth is a clear trend, but near-record occupancy, strong demand increases and steady supply additions provide a good near term outlook for the segment,” said Mark Skinner, partner at The Highland Group.