Despite significant declines in travel demand during the pandemic, one sector performed markedly better than the rest last month—U.S. economy extended stay hotels.
Extended stay hotels held a nearly 72% occupancy rate compared to the 42% hotel industry average, according to STR data. Revenue per available room, or RevPAR — the industry’s leading performance metric — declined by just over 14% at economy extended stay hotels compared to a nearly 49% drop for the industry as a whole.
“To be sort of flip, when in doubt: extended stay,” STR Senior Vice President of Lodging Insights Jan Freitag said. “It’s a sector within the industry that has a consistent base of performance.”