U.S. extended-stay hotels in the fourth quarter of 2022 logged record-high average daily rates, revenue per available room and demand, while occupancy dipped year over year for the second time since 2020, according to a new report from The Highland Group.
Fourth-quarter U.S. extended-stay RevPAR increased 10.6 percent year over year to $83.08 across economy, midprice and upscale sectors. The upscale extended-stay sector recorded the highest year-over-year RevPAR increase of 16.1 percent to $109.84. The midprice sector followed, increasing 5.8 percent to $74.60, and economy increased 1 percent to $41.78. Each sector’s RevPAR in Q4 set a record high, according to The Highland Group’s data going back to 2015.
Average Q4 daily rates logged an identical increase to RevPAR of 10.6 percent year over year, with upscale increasing 11.9 percent. Midprice ADR increased 7.5 percent to $104.12, and economy rose 6 percent to $56.45. Again, those ADRs all record highs, according to The Highland Group.
Demand for U.S. extended-stay properties also hit record highs in Q4, though with a more moderate increase than ADR at 1.1 percent year over year. Upscale demand increased 4.2 percent and midprice slightly increased 0.7 percent. Demand for economy decreased 4.4 percent.
Meanwhile, overall fourth-quarter U.S. extended-stay occupancy decreased 0.1 percent year over year to 72.7 percent. Midprice occupancy dropped 1.5 percent to 71.6 percent, and economy occupancy fell 4.7 percent to 74 percent. Upscale occupancy held strong with a 3.7 percent increase to 73.3 percent.
“Lower-priced extended-stay hotels are experiencing a similar situation to 2015–2017 when occupancy declined and then recovered into 2018 after ADR growth moderated” The Highland Group partner Mark Skinner said in the report.
Q3 U.S. extended-stay performance
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
