ATLANTA—The Highland Group has released its 2017 Extended-Stay Lodging Market report, which found that extended-stay hotel demand growth in 2016 was the strongest annual increase since 2010 and the second highest yearly gain in more than a decade. Strong demand growth has kept extended-stay hotel occupancy above its long-term average despite record levels of new rooms under construction.
The largest annual increase in new rooms in 17 years resulted in some occupancy loss in 2016 but ADR growth kept the annual change in RevPAR positive at 3.5%, according to the report.
“The acceleration of extended-stay hotel demand growth in 2016 is encouraging as more than 40,000 rooms under construction will set a new record for room supply increase in 2017,” said Mark Skinner, partner at The Highland Group.