According to the Highland Group's February 2025 report on extended-stay hotels, room rates are driving revenue per available room across the segment for the fifth straight month.
Revenue, occupancy, average daily rate and RevPAR performance metrics compared to February 2024 were better for extended-stay hotels than the overall hotel industry. Extended-stay hotel RevPAR posted a 0.7 percent gain in February which was the fifth consecutive month of positive change in RevPAR. The RevPAR increases for all extended-stay hotel segments were wholly attributed to growth in ADR as occupancy declined in February.
“Extended-stay hotel occupancy declined in February but ADR growth was high enough to result in positive change in RevPAR for the fifth straight month,” Mark Skinner, partner at The Highland Group, said in a statement.