Despite record levels of new rooms under construction, strong extended-stay demand helped keep hotel occupancy in the United States above 80% in the third quarter of 2016, according to a market report by The Highland Group.
Extended-stay hotel demand growth almost matched the change in supply in the third quarter 2016. For the year-to-date strong demand growth has kept extended-stay hotel occupancy above its long-term average despite record levels of new rooms under construction.
The increase in supply has resulted in some occupancy loss but strong ADR growth kept the quarterly change in RevPar positive at 3.4%.
“Extended-stay occupancy should finish 2016 above its long-term average of 73.8%. This will be very welcome as we move into 2017 because the growth in extended-stay supply and slowing ADR gains in the overall hotel industry are making it more difficult to increase ADR and that is the only way to grow RevPar at this stage of the cycle,” says Mark Skinner, Partner at The Highland Group.
The 2016 Third Quarter US Extended-Stay Lodging Market Report is the most comprehensive information available on this sector of the lodging industry. Complimentary copies of the report are available to the press at email@example.com.
About The Highland Group, Hotel Investment Advisors, Inc.
The Highland Group provides consulting services to developers, franchisors, investors, lenders, and others with interests in the lodging industry. For more information see
The Highland Group, Hotel Investment Advisors, Inc.
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