Extended-Stay Hotel Demand Surges 6.2% in July

Extended-stay hotel demand climbed 6.2 percent in July 2026, marking the largest monthly increase since February 2022 [1]. The Highland Group reported that demand outpaced supply growth for the sixth consecutive month, lifting room revenue by 10.4 percent year-over-year as the FIFA World Cup drove performance during the first half of the month [1].

What drove extended-stay demand growth in July?

The FIFA World Cup lifted extended-stay hotel performance, with the strongest effect felt during the first half of July [1]. As Asian Hospitality reported from The Highland Group’s “US Extended-Stay Hotels Bulletin: July 2026,” room revenue, average daily rate (ADR), and revenue per available room (RevPAR) all posted their second-largest monthly increases in over three years [1]. ADR experienced the largest relative lift among pricing metrics during the tournament period [1].

Demand growth of 6.2 percent in July also exceeded the 3.1 percent demand increase recorded across comparable hotel classes [1]. Furthermore, extended-stay demand has now expanded in 43 of the past 44 months when factoring in the additional leap day in February 2024 [1]. This pace keeps demand well above the segment's 5 percent long-term average annual increase for the sixth straight month [1].

How did supply growth compare to incoming guest demand?

Extended-stay room supply increased 4.7 percent year-over-year in July, falling below the segment's long-term historical average [1]. Supply growth averaged 4.6 percent across the first seven months of 2026 [1]. Because fewer extended-stay rooms remain under construction, full-year supply expansion is projected to stay below the long-term annual average [1].

With supply additions lagging behind guest demand since February, occupancy increased 1.5 percent in July [1]. This represented the sixth consecutive monthly occupancy improvement and the segment's largest gain in three months [1]. Extended-stay occupancy finished 10.2 percentage points higher than the average for comparable hotel classes, matching typical summer premiums [1].

How did extended-stay revenue and RevPAR perform across price tiers?

Room revenue across all extended-stay properties grew 10.4 percent compared to the prior year, marking the second-largest monthly gain since March 2023 [1]. By comparison, overall US hotel room revenue rose 9.3 percent, while comparable hotels excluding luxury and upper-upscale segments saw revenue climb 7.3 percent according to STR/CoStar figures cited by Asian Hospitality [1].

Performance across broader lodging tiers showed room revenue increasing 2 percent for economy hotels, 7.5 percent for midscale hotels, and 10.9 percent for upscale properties [1]. Extended-stay RevPAR rose 5.5 percent overall, representing the sixth consecutive monthly increase and the second-highest gain since March 2023 [1]. By individual pricing tier, extended-stay RevPAR climbed 2.8 percent in economy, 5.8 percent in mid-price, and 8.6 percent in upscale properties [1]. While the segment's aggregate RevPAR growth fell just short of the 5.6 percent gain recorded across comparable general hotel classes, economy and mid-price extended-stay properties posted higher ADR growth rates than their respective STR/CoStar segment peers [1].

What momentum carried over from the second quarter?

The July performance built directly on strong second-quarter fundamentals documented in The Highland Group’s “First Half Year 2026” report [1]. During the second quarter of 2026, extended-stay room revenue expanded 9 percent, securing the largest quarterly revenue increase in more than three years [1].

Second-quarter RevPAR advanced 4.2 percent, marking its strongest quarterly performance in 13 quarters [1]. Underpinning that increase was a 6 percent rise in second-quarter demand, the largest quarterly demand surge recorded by extended-stay properties since the first quarter of 2022 [1].