According to data from The Highland Group, extended-stay hotel demand gained but revenue per available room fell for the second consecutive month in May.
Total extended-stay hotel demand increased 1 percent in May compared to May 2024 despite small declines in midprice and upscale extended-stay hotel segments. Economy and midprice extended-stay hotels posted increasing average daily rate in May but at a cost to occupancy which declined for the fifth consecutive month.
“While extended-stay supply growth remains below its long-term historical average, it has exceeded the change in demand for three consecutive months,” Mark Skinner, partner at The Highland Group, said in a statement.