Extended-stay rooms reported under construction at mid-2024 approached 45,000, according to the Highland Group. This is the highest level in four years, a 62 percent increase compared to one year ago and a 10 percent gain over the last six months.
However, not all the rooms will have actually started construction and recent trends indicate that about 60 percent of these rooms can expect to open over the next 12 months. If so, the absolute increase in extended-stay room supply will be less than 5 percent over the next year and the growth in annualized room nights available will be lower than that.
“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,” Mark Skinner, partner at The Highland Group, said in a statement.