The Highland Group has just issued the second quarter 2017 report on the US extended-stay lodging industry. Report highlights for extended-stay hotels:
- Fastest quarterly supply growth since 2009
- Strongest mid-year demand growth since 2010
- Fourth consecutive mid-year period with double-digit room revenue increase
- Sixth consecutive quarter of RevPar growth above 3%
- Rooms under construction up 22% over the past year
I find it interesting that with U.S. extended-stay hotel supply growing as fast as it did in 2009, revenue is STILL climbing at double-digit rates. That is simply phenomenal.
Most analysts expect the rate of increase to slow as a result of new supply. I feel this is realistic. But think about what this means: extended-stay RevPAR has reached new record-highs, and with this as the STARTING point, the rate of growth may decelerate. We’ll take that. It will achieve great results for our investors.
That’s why we remain optimistic about the near-term and mid-term future of our industry.