NATIONAL REPORT—Economy extended-stay hotels reported RevPAR of $29.78 in April, according to The Highland Group’s “U.S. Extended-Stay Lodging Bulletin: April 2020.” This was about double the luxury hotel segment, based on STR figures.
When compared with the other extended-stay segments, RevPAR for economy extended-stay hotels fell 18% when compared to April 2019. Mid-price extended-stay saw a year-over-year (YOY) RevPAR decline of 55.8%, while upscale extended-stay dropped 76.3%.
“Extended-stay hotels, especially the economy segment, should continue to demonstrate RevPAR loss resilience during the foreseeable future,” said Mark Skinner, partner at The Highland Group.
All extended-stay hotel segments reported higher occupancy than the U.S. hotel average in April 2020, with YOY declines of 12.3% for the economy segment, 39.5% for mid-price and 66.1% for upscale.
The bulletin noted that the closing of some mid-price and upscale extended-stay hotels distorted the distribution of rooms open compared to one year ago. The change in distribution coupled with large losses of higher-rated guests caused overall extended-stay ADR to fall 34.7% in April 2020 compared to one year ago. ADR losses were lower than the 44.4% decline STR reported for the overall hotel industry.
April ADR for the economy extended-stay segment dropped 6.5% to $44.21 in 2020 from $47.28 in 2019, while mid-price fell 27% ($64.61 from $88.52) and upscale declined 30.2% ($66.71 from $102.17).
Economy Extended-Stay Hotels Report April RevPAR of $29.78 – Hotel Business appeared first on Hotel Business | Hotel Business – The leading source of hospitality news for owners, developers, designers, brokers, brands, management companies, lenders, REITs & asset managers.
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