U.S. Ext.-Stay Demand Falls for First Time in Two Years

For the first time in two years, year-over-year demand for U.S. extended-stay hotels has declined, according to a new report.

According to a monthly report from lodging industry consultant The Highland Group, overall July 2022 U.S. extended-stay hotel room night demand declined 1.7 percent year over year and declined 2.2 percent in the economy extended-stay segment, 0.8 percent for midprice stays, and 2.5 percent in the upscale segment.

The demand decline is correlated to strong growth in average daily rate across all three extended-stay segments, the report also noted.

The upscale segment was the slowest among extended-stay segments to recover from pandemic doldrums and has experienced the largest initial decline. According to Highland, falling demand for the upscale segment can also be linked to reduction in supply.

Angelique Platas  www.businesstravelnews.com