Report: Q2 U.S. Extended-Stay Demand at Record High

Second-quarter demand for U.S. extended-stay room nights reached record levels not only for the category as a whole but also for all three of its price-point segments, according to the latest report from The Highland Group.

Total Q2 U.S. demand was about 38,800 room nights compared with about 34,900 for the same period in 2019, the previous record. Economy extended-stay demand increased 14.8 percent during that timeframe, while midprice demand was up 14.1 percent and upscale demand increased 7 percent.

“Record-high demand, rapidly increasing average daily rate and a large decline in the supply pipeline indicate continued acceleration of the extended-stay hotel recovery in the near term,” said The Highland Group partner Mark Skinner in a statement.

The economy segment posted record-high quarterly levels for each of the three key performance indicators. The midprice and economy segments showed the greatest acceleration of recovery, given the steeper declines each faced during the pandemic compared with the economy segment.

Second-quarter U.S. extended-stay average daily rate was $94.60, down from $106.12 in 2019. The economy segment surpassed average second-quarter 2019 rates by 5 percent, at $50.12. The midprice segment ADR of $85.37 is 94 percent of the Q2 2019 rate, while the upscale segment rate of $125.27 is 85 percent recovered.

U.S. extended-stay occupancy for the second quarter reached 77.5 percent, 1 percentage point lower than in the second quarter of 2019. Economy, at 83.5 percent, surpassed its 2019 level of 77.3 percent. Midprice lagged by 1.6 percentage points, at 76 percent. Upscale at 76.3 percent remained below 2019 levels by 3.7 percentage points.

Overall second-quarter extended-stay revenue per available room was $73.30 compared with $83.32 in the second quarter of 2019. Economy segment RevPAR was at a record high of $41.83 compared with $36.85 in 2019. Midprice RevPAR, at $64.90, had recovered to 92 percent of 2019 levels, while the upscale segment, at $95.58, was at about 82 percent recovered.

Donna M. Airoldi https://www.businesstravelnews.com/