US Extended-Stay Demand Climbs 5.8% to Five-Year June Peak

US extended-stay hotel demand rose 5.8 percent in June 2026, marking the highest June expansion rate since 2021 as room nights sold outpaced a 4.6 percent supply increase [1]. According to The Highland Group’s bulletin, lower construction activity and FIFA World Cup travel pushed room revenues up 10.7 percent year over year [1].

Why did extended-stay demand outstrip the wider lodging market in June?

Extended-stay properties recorded a 5.8 percent increase in room nights sold in June, more than doubling the 2.5 percent demand growth reported by STR/CoStar for comparable hotel classes [1]. Asian Hospitality reported that June marked the fifth consecutive month where extended-stay demand growth beat its 5 percent long-term annual average [1]. The format has now posted monthly demand gains in 42 of the last 43 months, a span that includes February 2024 with its extra leap-year day [1]. Summer leisure bookings and event traffic tied to the FIFA World Cup supported this upward momentum [1].

How fast is new extended-stay supply entering the pipeline?

Room inventory expansion is slowing down, with rooms under construction dropping 30 percent over the past year [1]. Highland Group reported that room nights available increased 4.6 percent in June 2026 compared to June 2025 [1]. While supply growth topped 5 percent across the second half of 2025, it has stayed under that threshold in 2026 [1]. Across the past three years, calendar year supply increases held between 2.1 percent and 4 percent, while averaging 4.6 percent over the last six months [1]. Highland Group expects total 2026 supply growth to remain below its long-term annual baseline [1].

What do June 2026 occupancy and ADR figures reveal?

Extended-stay occupancy gained 1.1 percent in June, marking its fifth straight monthly increase [1]. Summer demand pushed overall extended-stay occupancy 10.1 percentage points above the average benchmark for comparable hotel classes [1]. Average daily rate grew 4.6 percent in June—the fifth consecutive monthly rise and the sharpest pace recorded since May 2023 [1]. However, Asian Hospitality noted that only mid-price extended-stay properties outpaced their direct STR/CoStar segment peers in ADR expansion [1].

How did RevPAR and total room revenue compare to industry benchmarks?

Extended-stay RevPAR climbed 5.8 percent year over year in June, reaching its highest monthly growth rate since March 2023 [1]. That 5.8 percent gain sat slightly below the 6.3 percent RevPAR improvement that STR/CoStar tracked across comparable traditional hotel categories [1]. Total extended-stay room revenue jumped 10.7 percent year over year, representing the largest monthly rise since March 2023 [1]. Across all traditional hotel classes, STR/CoStar recorded a 9.6 percent revenue lift [1]. When filtering out luxury and upper upscale tiers—classes with negligible extended-stay inventory—overall industry room revenue rose 7.3 percent [1].

What drove extended-stay cash flows during the month?

The FIFA World Cup acted as the primary catalyst for rate appreciation, driving ADR, RevPAR, and total room revenues to their fastest expansion rates in over three years [1]. Every individual extended-stay category beat the room revenue percentage gains of its comparable traditional hotel tier [1]. This summer performance followed an equally active May, where extended-stay demand recorded its highest year-on-year increase in more than four years [1]. With rooms under construction falling and demand consistently topping historical averages, pricing power remains tilted toward operators [1].