US: Latest research from The Highland Group show a major boost in extend stay projects across the country.
The Highland Group says the number
of US extended-stay rooms under construction has increased almost
threefold in the last four years and, at more than 20,000 rooms, it
has reached a six year high.
However, new rooms have been slow to open and the actual increase in new supply remains, for now, at historically low levels it adds.
This has allowed extended-stay hotels to set new nominal records for average daily rate and RevPar while occupancy has climbed to a 12 year high. Growth in demand, room revenue and RevPar have all set records over the last three, six and eight years respectively.
The Highland Group predicts that RevPar increases well above inflation are likely to continue over the next year before significant increases in new supply put the brakes on in 2016 and 2017.
The US Extended-Stay Lodging Report: Mid-Year 2014 is available from The Highland Group.