Extended-Stay Hotel Performance Slips as Travel Patterns Normalize

One hotel class that showed resilient performance during the pandemic was the extended-stay segment. But lately, the segment’s results have been slipping. In 2020, the lower-end extended-stay brands were able to maintain demand much better than hotels overall. The full-year occupancy for the U.S. was around 44% whereas economy extended-stay brands were able to maintain a 66% occupancy. This performance gave the segment a reputation of being recession resistant.