Extended-Stay Room Revenue Rose 7.7% in August
Highland Group and STR/CoStar data show extended-stay demand outpaced supply growth through July and August, widening occupancy premiums.
The short answer
Extended-stay room revenue grew 7.7 percent in August 2026 as demand outpaced supply for the seventh consecutive month. The sector expanded its occupancy premium over comparable hotel classes to 12.3 percentage points.
“With seven consecutive months of demand growth exceeding the increase in supply and stronger performance than comparable class hotels in August, the outlook for more extended-stay hotel RevPar gains is very promising”
The short version
- Extended-stay room revenue climbed 7.7% in August and 10.4% in July 2026.
- August occupancy reached 77.8%, beating comparable hotel classes by 12.3 percentage points.
- The Highland Group reported rooms under construction dropped 30% year over year.
Extended-stay hotel room revenue rose 7.7 percent year over year in August 2026, outpacing the 3.1 percent increase posted by the overall U.S. hotel industry [1]. This performance followed a separate July bump where room revenue climbed 10.4 percent, partly lifted in the first half of that month by the FIFA World Cup [2]. Across both months, extended-stay demand gains outstripped net supply additions, maintaining a streak of seven consecutive months where demand growth exceeded supply [1].
| Metric | Extended-Stay (July 2026) | Extended-Stay (August 2026) | Comparable Hotels (August 2026) |
|---|---|---|---|
| Occupancy Rate / Spread | +10.2 percentage points spread | 77.8% (+12.3 pt spread) | 65.5% |
| Occupancy Growth | +1.5% | +0.7% | N/A |
| Demand Growth | +6.2% | +5.3% | +1.0% |
| Supply Growth | +4.7% | +4.5% | N/A |
| Average Daily Rate (ADR) | +3.9% | $122.17 (+2.3%) | N/A |
| RevPAR | +5.5% | $95.11 (+3.0%) | +1.1% |
| Room Revenue Growth | +10.4% | +7.7% | +2.1% |
Occupancy Premium Over Comparable Tiers
As Asian Hospitality reported from The Highland Group’s findings, extended-stay properties registered an absolute occupancy of 77.8 percent in August, creating a 12.3 percentage point premium over comparable hotels, which recorded 65.5 percent [1]. That margin expanded from a 10.2 percentage point premium recorded in separate data for July [2]. The comparable grouping evaluated by STR/CoStar tracks economy, midscale, and upscale classes while excluding luxury and upper upscale, segments where extended-stay inventory is negligible [1].
Supply Additions versus Monthly Demand Growth
Data published by The Highland Group shows extended-stay room demand increased 5.3 percent in August and 6.2 percent in July, beating the metric's 5.0 percent long-term annual average in both reporting periods [[1], [2]]. Meanwhile, available room nights increased by 4.7 percent in July and 4.5 percent in August, holding below the 5.0 percent supply growth pace logged during late 2025 [[1], [2]]. Across the first eight months of 2026, supply growth averaged 4.6 percent, constrained as rooms under construction dropped 30 percent year over year [1].
RevPAR Outperformance by Chain Scale
Extended-stay RevPAR increased 3 percent in August to $95.11, while the comparable hotel set gained 1.1 percent [1]. Broken down by chain scale, economy extended-stay RevPAR increased 1.4 percent against a 1.1 percent contraction for traditional economy properties, according to STR/CoStar figures [1]. Mid-price extended-stay RevPAR rose 3 percent versus 0.2 percent for midscale, and upscale extended-stay gained 4 percent compared to 3 percent for traditional upscale [1]. In July, however, total extended-stay RevPAR growth of 5.5 percent slightly trailed the 5.6 percent increase recorded by comparable hotel classes [2].
These datasets do not cover extended-stay performance metrics in the luxury or upper upscale segments [1]. The reports also do not detail operating cost changes, property-level net operating income, or booking window duration for either month [[1], [2]].
Reported by
This article was written from the following reporting. Follow the links for the original coverage.
- [1]Extended-Stay Hotels Outpace Industry With 7.7% Revenue Surge— asianhospitality.com
- [2]Extended-Stay Demand Surges 6.2% in July— asianhospitality.com
Frequently asked
+What was the extended-stay occupancy rate in August 2026?
Extended-stay occupancy reached 77.8 percent in August 2026, which was a 0.7 percent increase from the previous year. This stood 12.3 percentage points higher than the 65.5 percent occupancy recorded for comparable hotel classes.
+How did extended-stay RevPAR compare across chain scales in August?
Extended-stay RevPAR beat traditional tiers in every segment. Economy extended-stay rose 1.4 percent while standard economy fell 1.1 percent. Mid-price extended-stay rose 3 percent versus 0.2 percent for midscale, and upscale extended-stay rose 4 percent versus 3 percent.
+Why is extended-stay supply growth decelerating?
Extended-stay supply growth averaged 4.6 percent through the first eight months of 2026, below its long-term average. Supply additions slowed as rooms under construction dropped 30 percent year over year.
+What drove extended-stay performance spikes in July 2026?
In July, demand jumped 6.2 percent and room revenue increased 10.4 percent. The Highland Group reported that the FIFA World Cup boosted demand and rate gains, particularly during the first half of that month.
+Which property types are excluded from the comparable hotel dataset?
The comparable hotel category used by STR/CoStar and The Highland Group excludes luxury and upper-upscale hotels because there is negligible extended-stay supply operating within those two tiers.
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