EXTENDED-STAY ROOM SUPPLY increased by 1.8 percent in February due to it being a leap year, consistent with the average monthly increase observed over the last two years, according to The Highland Group. February marked 29 consecutive months of 4 percent or less supply growth. Additionally, the change in supply has remained below 2 percent for more than two years, with both metrics significantly falling below the long-term average.
The 18.8 percent surge in economy extended-stay supply, along with a modest increase in mid-price segment rooms, is largely attributed to conversions, The Highland Group said. Meanwhile, new construction in the economy segment is estimated at around 3 percent of open rooms compared to a year ago.
2024 first half supply trends
Supply change comparisons have been affected by rebranding, segment realignment in The Highland Group’s database, and the de-flagging of hotels failing to meet brand standards, along with sales to multi-family apartment companies and municipalities, the report said. This trend is expected to persist into the first half of 2024, particularly with older extended-stay hotels still available on the market.
However, the year-over-year increase in total extended-stay supply compared to 2023 is expected to remain significantly below the long-term average.
Decline in mid-price segment revenues
Adjusted for the leap year, mid-price extended-stay hotels recorded their third consecutive monthly revenue decline in three years, while the economy segment continued to show double-digit gains, The Highland Group said.
The mid-price segment experienced a contraction in supply due to rebranding, which notably affected segment demand, the report added. Adjusted for the leap year, the segment saw a decline of about 2 percent in demand. Even adjusted for the additional day in 2024, February’s extended-stay demand increase was the highest monthly gain over the last year.
Occupancy grows, ADR and RevPAR decrease
February saw the extended-stay hotel occupancy grow slightly, marking the first monthly increase in 11 months, the report further said. Extended-stay hotel occupancy in February was 12.2 percentage points higher than the total hotel industry, aligning with the historical long-term average occupancy premium.
In February, total extended-stay hotel ADR experienced a monthly decline for the first time since March 2021, The Highland Group said. While economy extended-stay was the only segment reporting a decrease in ADR, both mid-price and upscale segments saw the smallest monthly increases since rates began rising in April 2021, which was insufficient to elevate the total extended-stay ADR.
Extended-stay hotel RevPAR mirrored the ADR trend, the report said. While the economy segment experienced a decline, the increases in mid-price and upscale segments were insufficient to boost the total extended-stay hotel RevPAR, resulting in a third consecutive month of decline.
In January, extended-stay hotels experienced lower performance compared to the overall industry, attributed to weather factors, according to The Highland Group. Room supply, revenues, ADR, and RevPAR across segments were impacted.
2024 માં શરૂ કરવામાં આવેલી, હિલ્ટન એટલાન્ટેનિયર મર્સિડીઝ બેન્ઝ સ્ટેડિયમ દ્વારા સિગ્નિયા, જ્યોર્જિયા વર્લ્ડ કોંગ્રેસ સેન્ટર અને સ્ટેટ ફાર્મ એરેના, આવતા વર્ષે હન્ટર હોટેલ કોન્ફરન્સનું આયોજન શરૂ કરશે.
હન્ટર હોટેલ કોન્ફરન્સમાં એક પેનલ પર બોલતા, ડાબેથી, વિઝન હોસ્પિટાલિટીના પ્રમુખ અને સીઈઓ મિચ પટેલ; ગ્રેગ ફ્રીડમેન, પીચટ્રી ગ્રુપના મેનેજિંગ પ્રિન્સિપાલ અને સીઈઓ; અને રોબર્ટ વેબસ્ટર, CBRE ના વાઇસ ચેરમેન.
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