A closer look at 1Q extended-stay performance
Because its pricing model and amenity package offer higher value for longer-length-of-stay customers, extended-stay hotels were better positioned to weather the downturn, theoretically. But that doesn’t appear to be the case at first glance. The extended-stay segment declined more in occupancy than the rest of the U.S. hotel industry during the first quarter of 2009, resulting in a 22-percent revenue-per-available-room decline versus the total industry’s 18-percent decline. However, when looking at the demand, supply and room revenue data, a clearer, much better picture of the extended-stay segment appears.