ATLANTA—According to The Highland Group’s “2020 Mid-Year U.S. Extended-Stay Hotel Market Report,” extended-stay hotels’ occupancy premium is at a record level.
Extended-stay hotels’ occupancy premium compared to the overall hotel industry rose to 16.7 percentage points in the second quarter of 2020. Year-to-date through June, extended-stay hotel occupancy is down 24.5%. STR reports overall hotel occupancy is down 34.5%.
“Extended-stay hotels are widening their occupancy premium despite smaller reductions in ADR compared to the overall hotel industry,” said Mark Skinner, partner at The Highland Group.