ATLANTA—According to “The 2020 First Quarter U.S. Extended-Stay Lodging Market Report” from The Highland Group, all extended-stay hotel segments fared comparatively well in the first quarter.
Extended-stay hotels are weathering the downturn caused by the COVID-19 pandemic better than the overall hotel industry according to almost all performance metrics. The proportion of closed extended-stay hotel rooms is relatively low at about 5%. The occupancy premium above the overall hotel industry is 14 percentage points, the widest margin since 2011. The quarterly room revenue decline was the largest ever reported, but it was less than 70% of the decline for all hotels.
“The reopening of mid-price and upscale extended-stay hotels will increase competition within the sector, but should limit falls in overall extended-stay hotel ADR and help keep RevPAR declines lower than the overall hotel industry,” said Mark Skinner, partner at The Highland Group.