Income per accessible room for every section of the US extended-stay lodge sector within the second quarter recovered to 2019 ranges for the primary time for the reason that begin of the Covid-19 pandemic, in keeping with a brand new report from The Highland Group. In the meantime, the expansion price of extended-stay provide has slowed and the variety of rooms underneath development has fallen sharply.
Second quarter U.S. Prolonged Keep RevPAR elevated 24.three% year-over-year to $91.12, in comparison with $83.32 in 2019. Luxurious Prolonged Keep RevPAR for the primary time for the reason that pandemic reached 2019 ranges, at $117.99 from $117.25 three years in the past.
Lengthy-stay occupancy has not totally recovered to 2019 ranges. Within the second quarter, it was 78.three%, up 1.1% year-over-year, from 78.5% in 2019. Nevertheless , common every day charges are increased, at $116.35 in comparison with $106.12 in 2019.
Whereas long-stay properties in the course of the pandemic reported stronger comparative occupancy and income ranges than lodges, “the general hospitality trade restoration caught up with long-stay lodges within the second quarter after an 18-month lag” in keeping with Highland.
Obtainable room nights for prolonged stays within the second quarter rose 2.four p.c 12 months over 12 months to about 101.eight million, with provide in every section — financial system, mid-priced and upscale — growing by related percentages. Rooms underneath development, nevertheless, have been down 34.three p.c 12 months over 12 months, with the luxurious tier being the toughest hit. Highland famous that “provide progress forecasts by means of 2025 are the bottom in a number of years.”
“The outlook for extended-stay lodges is superb, as a result of the final time long-stay lodge provide progress dipped beneath three p.c, it stayed there for 4 years and RevPAR grew 47 p.c.” throughout the identical interval,” Mark Skinner, a companion at The Highland Group. he mentioned in an announcement.
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