The extended-stay segment is leading the lodging industry back to prosperity. The third quarter was the best in the history of the segment, according to a report from The Highland Group, an Atlanta-based consulting and investment advisory firm.
Some highlights of the report:
• Room revenues for the third quarter were nearly $1.7 billion, up 12.6 percent over 2009 and the highest of any quarter in history. Year-to-date revenues approached $4.7 billion, the highest since 2008. The upscale category led the segment with a 13.4-percent increase in revenues during the quarter.
• Extended-stay hotels sold more room nights in the first nine months of the year than in any other year since Highland has followed the segment. Third-quarter demand rose 12.1 percent, with the mid-priced category leading with a 13.7-percent increase.
“We didn’t really see any surprises in the third-quarter performance (of the extended-stay segment), but the growth in demand was much stronger than anyone would have thought it would be at the start of 2010,” says Mark Skinner, a partner in The Highland Group.