According to a new report from the Highland Group, economy extended-stay hotels showed “resilience” in August, despite the month having the year’s largest decline in revenue per available room so far.
August’s 3.9 percent decline in total extended-stay hotel RevPAR was the fifth consecutive monthly fall and the largest in 2025. Economy segment extended-stay hotels reported a 1.3 percent decline in RevPAR which was “far lower” than the 5.7 percent contraction the STR division of CoStar estimated for all economy-class hotels. It was also a smaller decline than all classes of hotels except upper-upscale and luxury segments, which are leading the overall U.S. hotel industry.
“August’s performance metrics further indicated that economy extended-stay hotels are weathering the hotel industry downturn better than most classes of all hotels especially at lower price points,” Mark Skinner, partner at The Highland Group, said in a statement.