Extended Stay Hotels Are Stealing Share: See Where the Growth Is

Fresh data suggests extended stay hotels have found a sweet spot, stealing business from traditional hotels while maintaining pricing power.

Extended stay hotels continue to outperform much of the lodging sector: Developers have rushed to build new properties, but demand has consistently outpaced supply growth.

New data highlights why.

These are rooms with kitchenettes in leased properties, and the sector has grown to 611,000 rooms nationwide, according to data presented at a workshop run last week in Washington, D.C., by The Highland Group, Kalibri Labs, and the Extended Stay Lodging Association.

Despite a fourfold increase in supply since 2000, occupancy rates have hovered around 74%.

Consider the revenue growth, too. The sector genera