Extended-Stay Markets Show RevPAR Gains

Date: March 14 2011
Source: HotelBusiness.com
Website: http://www.hotelbusiness.com/hb/links/news/news.asp?ID=40672

NEW YORK—New data from The Highland Group shows extended-stay hotels had RevPAR gains of 10% or higher in 30 Metropolitan Statistical Areas in 2010 compared to 2009. RevPAR was up 15% or more in 12 MSAs.

Occupancy increases were the main driver of growth as average rate fell in 70 of the largest markets, according to The Highland Group's 2011 U.S. Extended-Stay Lodging Report: 100 Largest Markets.

Large falls in rooms under construction were reported for the second successive year and there were fewer than 3,600 rooms under construction in the 100 largest U.S. markets at the end of 2010. No rooms under construction were reported in 75% of those MSAs, according to The Highland Group.

The report indicated extended-stay hotel average rates are rising across all segments. The 7.1% increase in RevPAR in 2010 is one of the strongest on record and 2011 is forecast to be even better, according to The Highland Group.

The Highland Group is a hospitality consulting and research firm that specializes in research on extended-stay lodging.