Report: Extended-stay hotels see record demand, revenue despite Q3 occupancy dip

U.S. EXTENDED-STAY HOTELS posted record-high demand, ADR and RevPAR despite reporting a third consecutive occupancy decline during the third quarter of
2024, according to The Highland Group. Occupancy declines have been minimal and average occupancy remains more than 11 percentage points above the overall hotel
industry year-to-date through the third quarter.

The overall hotel industry saw a slightly smaller occupancy decline year-to-date through the third quarter than extended-stay hotels, according to STR/CoStar.
The broader industry also posted stronger ADR growth, yielding a full percentage RevPAR gain, surpassing the 0.4 percent increase for extended-stay hotels.

The 2024 Third Quarter US Extended-Stay Hotels Report found that the upper-upscale and luxury segments are helping lift overall hotel industry performance. With
minimal extended-stay rooms in these categories, STR/CoStar data shows a 0.3 percent year-to-date RevPAR gain when they are excluded—closely aligning with
extended-stay hotel performance.