Skip to content
Search

Latest Stories

Report: Extended-stay revenues in traditional hotels outperform extended-stay hotels

Traditional hotels recorded 74.27 million extended-stay room nights, a 2 million night difference

Report: Extended-stay revenues in traditional hotels outperform extended-stay hotels

EXTENDED-STAY ROOM revenues in traditional hotels outperformed those in extended-stay hotels by 21 percent, indicating potential for further development in the extended-stay sector, according to consulting firm The Highland Group and Kalibri Labs. For the 12 months ending June 2023, guest-paid room revenue for stays of seven consecutive nights or more totaled $8.97 billion in traditional hotels, compared to $7.39 billion in extended-stay hotels.

“Traditional hotels are still accommodating more extended-stay demand than extended-stay hotels despite the latter’s substantial gains in market share over the last 25 years,” said Mark Skinner, partner at The Highland Group.


Accommodated room nights tallied 74.3 million and 72.2 million, respectively. Nationally, extended-stay demand (ESOC) constitutes 53 percent of extended-stay hotels. In traditional hotels, ESOC is 13 percent, yet the room count is tenfold compared to extended-stay establishments, the report said.

“Despite the growth in extended stay during the pandemic, in the current lodging environment we expect continued expansion of this segment for the foreseeable future,” said Mark Kren, director of real estate and investment reporting at Kalibri Labs.

Extended-stay guests, defined as those staying seven nights or longer, contributed to 72.18 million room nights in extended-stay hotels for the 12-month period ending June 2023. Meanwhile, traditional hotels recorded 74.27 million extended-stay room nights, marking a difference of over two million, the report said.

In nine markets covered in this report, traditional hotels cater to higher extended-stay demand than extended-stay hotels. Nationally, extended-stay hotels average a 53 percent demand share (ESOC) from extended-stay guests, while traditional hotels estimate around 13 percent.

Stay duration and discounts

The average length of stay for extended-stay guests in extended-stay hotels and traditional hotels was 25 and 14 nights, respectively. Over the 12 months ending June 2023, extended-stay hotels offered a 22 percent rate discount compared to traditional hotels for guests staying 7 consecutive nights or more.

According to the report, for guests staying 7-29 nights and 30+ nights, the corresponding discounts were 10 percent and 3 percent. Extended-stay guests staying in extended-stay hotels book 17 days in advance, on average, compared to 18 days in traditional hotels.

Market dynamics 

For guests staying 30 nights, the differential remains consistent. However, for stays spanning 7-29 nights, advance bookings at extended-stay hotels average 15 days, in contrast to 20 days at traditional hotels. Reservation costs in extended-stay hotels average 5.7 percent of guest-paid revenues, while in traditional hotels, it's 7.1 percent.

New York recorded 1.34 million more extended-stay room nights accommodated in traditional hotels than in extended-stay hotels for the 12 months ending June 2023. This substantial gap is attributed to the limited supply of extended-stay rooms in New York City.

Virginia Beach leads with extended-stay hotels reporting a remarkable 66 percent share of demand from guests staying seven or more nights. Markets with the highest share often feature a significant portion of economy extended-stay hotels, known for their elevated ESOC.

Extended stay and residential guests

Older economy extended-stay hotels, catering to a significant residential clientele, are prevalent in markets with extended stays over 30 nights. While stay durations in non-extended-stay hotels tend to be shorter, they exceed 80 nights in high-performing markets.

In Miami, guests staying seven to 29 nights at extended-stay hotels enjoy a substantial 36 percent discount compared to traditional hotels for equivalent stays. These discounts are based on guest-paid ADR in both accommodation types.

Cleveland and Chicago lead in rate discounts for guests with stays over 30 nights, influenced by factors specific to their extended-stay markets.

Booking patterns

Booking lead times vary widely, ranging from eight to 47 days for guests staying seven or more nights. In New York, high overall market occupancy and limited extended-stay room availability contribute to lead times 75 percent longer than the next highest average in Anaheim.

In Anaheim, robust summer-related leisure demand extends the average booking lead time, offering insights into the influence of seasonality on booking patterns.

Booking costs, inversely tied to length of stay, are lower at extended-stay properties compared to traditional hotels. Longer-term guests tend to book directly with the hotel, reducing reservation expenses.

Booking costs at extended-stay hotels average 5.1 percent of guest-paid revenue for stays of seven to 29 nights, with variations influenced by market-specific channel mix. Major markets, relying heavily on costly channels like OTAs and FIT Wholesale, exhibit higher booking costs relative to revenues.

Costs and ADR

The percentage differential in booking costs per actualized room night between the highest and lowest markets far outweighs the differences in ADR for equivalent lengths of stay.

In September, extended-stay hotels saw modest growth in July, aligning with the seasonal trend favoring the broader hotel industry over extended-stay establishments, according to The Highland Group. Total hotels experienced a marginal dip in occupancy and a slightly greater rise in ADR compared to all extended-stay hotels in July 2022.

More for you

Breaking Barriers: Women of Color Power List 2025 Revealed

Breaking Barriers: Women of Color Power List 2025 Revealed

Women of Color Power List 2025 Debuts at AAHOACON 2025

ASIAN MEDIA GROUP USA, publisher of Asian Hospitality magazine, launched the first-ever “Women of Color Power List 2025” at the 2025 AAHOA Convention & Trade Show in New Orleans, honoring 51 women reshaping the U.S. hospitality industry. The publication is the first to spotlight the achievements of women of color, recognizing their resilience, innovation, and leadership.

Asian Media Group Managing Editor Kalpesh Solanki, Executive Editor Shailesh Solanki, and Chief Operating Officer Aditya Solanki announced the list during the conference.

Keep ReadingShow less
AAHOALending.com લોન્ચ 2025

AAHOA, બ્રિજ AAHOALending.com લોન્ચ કરે છે

AAHOA અને બ્રિજે AAHOALending.com ને AAHOACON 2025 માં રજૂ કર્યું

AAHOA અને બ્રિજે AAHOALending.com લોન્ચ કર્યું, જે હોસ્પિટાલિટી પર કેન્દ્રિત ડિજિટલ ધિરાણ પ્લેટફોર્મ છે. તે AAHOA સભ્યોને 150 થી વધુ ધિરાણકર્તાઓની ઍક્સેસ પ્રદાન કરે છે, જેમાં વધુને વધુ લોકોને નિયમિતપણે ઉમેરવાની યોજના છે, આ પ્લેટફોર્મ વપરાશકર્તાઓને ધિરાણ વિકલ્પોની તુલના કરવાની, શ્રેષ્ઠ દરો અને સુરક્ષિત ભંડોળ શોધવાની મંજૂરી આપે છે.

કોફાઉન્ડર અને CEO રોહિત માથુરની આગેવાની હેઠળના બ્રિજને ક્લબ બ્લુ ઇન્ડસ્ટ્રી પાર્ટનર તરીકે નિયુક્ત કરવામાં આવ્યા છે, જે AAHOAના પ્રોગ્રામમાં સર્વોચ્ચ સ્તર છે, તેના 300 ભાગીદારોમાંથી માત્ર 12 જ લાયકાત ધરાવે છે, એમ બંનેએ સંયુક્ત નિવેદનમાં જણાવ્યું હતું.

Keep ReadingShow less
2025માં મંદીની સંભાવના 50 ટકા : HAMA સર્વે

2025માં મંદીની સંભાવના 50 ટકા : HAMA સર્વે

HAMA 2025 સર્વે: 49% મેનેજર્સ મંદીની આશંકા ધરાવે છે

હોસ્પિટાલિટી એસેટ મેનેજર્સ એસોસિએશનના સ્પ્રિંગ 2025 ઇન્ડસ્ટ્રી આઉટલુક સર્વેક્ષણમાં અંદાજે 49 ટકા ઉત્તરદાતાઓ 2025 માં અમેરિકામાં મંદીની અપેક્ષા રાખે છે, જે 2024ના પાનખર સર્વેક્ષણમાં 19 ટકાથી વધુ છે. ટોચની ત્રણ ચિંતાઓ માંગ, ટેરિફ અને DOGE કટ અને વેતનમાં વધારો વચ્ચેનો જોડાણ છે.

HAMA સર્વેક્ષણમાં જાણવા મળ્યું છે કે લગભગ 55 ટકા ઉત્તરદાતાઓએ તેમની વર્તમાન વ્યૂહરચનાના ભાગ રૂપે બ્રાન્ડ અથવા મેનેજમેન્ટ ફેરફારો કર્યા છે અથવા કરવાની યોજના બનાવી છે.

Keep ReadingShow less
AAHOA Bridge AAHOALending 2025

AAHOA, Bridge launch AAHOALending.com

AAHOA and Bridge Unveil AAHOALending.com at AAHOACON 2025

AAHOA AND BRIDGE launched AAHOALending.com, a digital lending platform focused on hospitality. It offers AAHOA members access to more than 150 lenders, with plans to add more regularly, while allowing users to compare financing options, find the best rates and secure funding.

Bridge, led by Cofounder and CEO Rohit Mathur, has been named a Club Blue Industry Partner, the highest level in AAHOA’s program, with only 12 of its 300 partners qualifying, the duo said in a joint statement.

Keep ReadingShow less
HWIC WHLA partnership 2025

HWIC joins WHLA to support industry women

HWIC Becomes WHLA’s 34th Member in 2025

THE HOSPITALITY WOMEN’S Innovation Council recently joined as the 34th member of the Women in Hospitality Leadership Alliance to support women and underserved communities across the industry. The council will encourage women to take part in the messaging, programs and initiatives shared by all WHLA groups.

WHLA was founded in 2021 as a consortium of organizations working to advance women in hospitality.

Keep ReadingShow less