Extended-stay hotel supply growth has been increasing incrementally for most of 2024 and will likely exceed the change in demand year-to-date, according to the Highland Group. However, for the last three consecutive months, demand has grown faster than supply.
With occupancy and average rate both increasing small gains in RevPAR have been reported, reversing a four month trend of declining RevPAR.
“June was another good month for extended-stay hotels with demand growth exceeding the change in supply for the third consecutive month,” Mark Skinner, partner at The Highland Group, said in a statement.