Second-quarter U.S. extended-stay occupancy dropped 2.3 percent year over year to its lowest Q2 level since 2020, according to a new report by The Highland Group.
The second-quarter U.S. extended-stay occupancy rate was 76.2 percent. Occupancy dropped in all three extended-stay tiers Highland tracks—upscale, midprice and economy—and declined most sharply in the economy tier, down 3.8 percent to 73.2 percent.
Second-quarter U.S. extended-stay average daily rate declined 0.4 percent year over year to $123.27, with upscale extended-stay ADR down 0.5 percent to $162.59.
Revenue per available room for the segment declined 2.7 percent to $93.98, with upscale extended-stay RevPAR down 1.3 percent to $127.60.
Highland noted that the occupancy decline comes even as extended-stay supply development has been constrained.
“Extended-stay rooms reported under construction declined 20 percent over the last year and about the same over the last six months,” according to Highland. “Furthermore, a significant portion of rooms reported under construction have not actually started and the development process is lengthy.”
Total U.S. extended-stay supply at the end of Q2 increased 3.5 percent year over year to about 612,000 rooms.
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