Highland Group: Economy extended-stay hotels buck RevPAR decline

According to new data from The Highland Group, extended-stay hotels further demonstrated the sector’s resilience to the seven-month long hotel industry downturn in October, especially at lower price points. Economy extended-stay hotels have incurred far lower declines in revenue per available room than all economy class for five straight months. The contraction in mid-price extended-stay hotel RevPAR has been half the loss reported for all mid-price hotels over the last two months.

“Extended-stay hotels are expected to see negative change in RevPAR for the rest of 2025 but the decline should not be as large as corresponding classes of all hotels especially at lower price points.” Mark Skinner, partner at The Highland Group, said in a statement.