Report: Extended-stay room revenue up 3.4 percent in H1

EXTENDED-STAY ROOM revenue rose 3.4 percent in the first half of 2024 and 5.1 percent in the second quarter, while occupancy decreased 0.2 percent in the
first half but increased 1 percent during the second quarter, according to The Highland Group. The second quarter also saw the highest quarterly RevPAR increase
in a year, an 11-point occupancy premium over all hotels and the most rooms under construction in four years.

The 2024 mid-year U.S. extended-stay Lodging Market report found that all three extended-stay hotel segments reported record-high room revenues in the first half
and for the second quarter.

Revenue growth in extended-stay hotels is accelerating in 2024, with the second quarter’s increase more than three times that of the first quarter, the report
said. The 5.1 percent revenue increase in the second quarter significantly outpaces the 3 percent gain reported for the overall hotel industry by STR/CoStar.

“Despite headline grabbing large increases in extended-stay rooms under construction, the annualized increase in room nights available over the next year
should be well below the long-term average and the near-term risk of over supply nationally is very low,” said Mark Skinner, The Highland Group’s partner.