Extended-stay hotels further demonstrated the sector’s resilience to the hotel industry downturn in September—especially at lower price points.
Monthly declines in revenue per available room compared to September 2024 for economy, midscale and upscale extended-stay segments were 2.3 percent, 1.7 percent and 2 percent, respectively. According to STR/CoStar, corresponding classes of all hotels reported RevPAR losses of 6.5 percent, 2.7 percent and 4.2 percent over the same period. Extended-stay hotel’s "exceptionally" strong Q4 in 2024 will be hard to exceed in 2025, so further declines in RevPAR are expected over the next three months
“Extended-stay hotel performance metrics were relatively good again in September but further RevPar declines are forecast, partly due to the sector’s exceptionally strong performance in Q4 2024,” Mark Skinner, partner at The Highland Group, said in a statement.