Despite the highest 2025 monthly demand gain, a significant uptick in supply growth reduced extended-stay hotel occupancy to its lowest level for July since 2020.
Compared to corresponding classes of all hotels, the monthly changes in average daily rate were better for extended-stay hotels. July’s decline in revenue per available room was much lower for economy extended-stay hotels compared to all economy class hotels. Midprice and upscale extended-stay segments reported RevPAR declines similar to all hotels of the same class. This is unusual for a summer month because seasonal leisure travel tends to have a bigger positive impact on the overall hotel industry compared to extended-stay hotels, especially at lower price points.
“July’s performance metrics further indicated that extended-stay hotels should weather an industry downturn better than corresponding classes of all hotels especially at lower price points.” Mark Skinner, partner at The Highland Group, said in a statement.