Extended-stay hotel performance metrics mostly outperformed comparable classes of all hotels in Q3 2025 compared to the third quarter 2024, according to the Highland Group report. Extended-stay hotels’ occupancy premium stayed at 11.4 percent points and declines in ADR were smaller than corresponding classes of all hotels.
The largest disparity was in the economy segment with economy extended-stay hotels reporting a RevPAR decline of about one fifth of the contraction for all economy class hotels.
“With further declines in extended-stay hotel RevPAR expected, national supply growth could plateau or even decline over the near term,” Mark Skinner, partner at The Highland Group, said in a statement.