Room revenue from guests staying seven consecutive nights or longer was $8.9 billion at traditional hotels compared to $7.5 billion at extended-stay hotels in 2024, according to a new report from The Highland Group and Kalibri Labs. Corresponding room nights accommodated were 69.5 million and 72.4 million.
Nationally, the share of demand in extended-stay hotels is 50 percent. In traditional hotels this demand is 12 percent, but there are 10 times as many rooms compared to extended-stay hotels.
“The 6.5 million room night increase in extended-stay demand at traditional hotels over the last 5 years despite extended-stay supply gaining 83,000 rooms shows substantial unmet demand for extended-stay hotels still remains,” Mark Skinner, partner at The Highland Group, said in a statement.
“Despite the growth in extended-stay development over the past five years, there is still a significant level of unaccommodated extended-stay demand in markets across the U.S. As a result, we expect continued expansion of this segment for the foreseeable future,” said Mark Kren, senior director of real estate investment reporting at Kalibri Labs.