When economy, mid-price and upscale extended-stay hotels are compared directly to corresponding classes of all hotels, all three extended-stay hotel segments outperformed in terms of the change in Q1 2025 RevPar relative to Q1 2024. Economy and mid-price extended-stay hotels reported occupancy declines and overall extended-stay hotel occupancy fell to 70.9 percent, which is the lowest for a first quarter since 2010 excluding 2020 and 2021 which were impacted by the pandemic.
“The positive change in extended-stay hotel RevPar decelerated during Q1 2025 but compared directly to corresponding classes of all hotels in all three extended-stay hotel segments, they reported higher RevPar growth from Q1 2024 to Q1 2025 ,” Mark Skinner, partner at The Highland Group, said in a statement.