Last year the correlation between performance of extended-stay hotels and the overall hotel industry resumed its long-term trend which has essentially continued through the first half of 2023. Total extended- stay hotel ADR and RevPar have been increasing faster than the overall hotel industry at a small expense in occupancy. However, extended-stay hotel’s occupancy premium above all hotels remained within its long-term average range. Economy and mid-price extended-stay hotels are outperforming corresponding classes of all hotels, but due to relatively slower ADR growth, upscale extended-stay hotels are a couple of points behind all upscale class hotels.
