The U.S. extended-stay market’s provide in 2022 grew 2.5 % yr over yr, its smallest enhance in “a number of years,” as sturdy common every day charges drove down occupancy, in keeping with a brand new report from The Highland Group.
Prolonged-stay lodge occupancy in 2022 was beneath pre-pandemic ranges in practically 60 of the 100 U.S. markets Highland surveyed for the report, largely on account of “sturdy ADR progress over the past two years.” The report additionally famous that smaller markets, lead the occupancy restoration indices,” resembling Syracuse, N.Y.; Youngstown, Ohio; and Scranton and Lancaster, Pa. are main the extended-stay restoration.
Along with sturdy ADR progress, Highland cited reasonable provide progress inside the extended-stay market as a predominant cause behind some markets reporting “the bottom occupancy restoration in 2022.”
Among the many markets with the very best ADR restoration in 2022 in comparison with 2019 have been Myrtle Seashore, S.C.; Scranton and Allentown, Pa.; and Cape Coral-Fort Myers, Fla. Every market reported larger ADR in 2022 than in 2019, with San Jose and San Francisco, Calif., reporting the bottom ADR restoration in contrast with 2019.
Highland within the report famous that whereas income per accessible room in 12 of the 100 markets has not but recovered to pre-pandemic ranges, some “reported the strongest RevPAR progress over the past yr.”