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Today Thursday, July 30, 2026
Extended-Stay Hotels Outperform as GOP Margins Reach 48%
financeefinancialmodels.com·1 min·For: Owner, Investor, GM, Revenue

Extended-Stay Hotels Outperform as GOP Margins Reach 48%

Extended-stay properties are outperforming full-service hotels in a low-growth, high-cost US market due to their labor-light operating models. Accounting for 40% of the US project pipeline, extended-stay delivers 42-48% GOP margins compared to 26-32% for full-service assets.

Key Takeaways

  1. 1Extended-stay GOP margins of 42–48% outpace full-service properties by 15–20 percentage points.
  2. 2Hotel labor costs per occupied room rose 12.8% in 2025 to $48.32, squeezing full-service profitability.
  3. 3Extended-stay projects represent roughly 40% of all US hotel pipeline projects through 2031.

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Source: efinancialmodels.com

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