Banner Year for Extended Stay
The prolonged success of the extended-stay segment rolls on. According to The Highland Group's annual study of the sector, extended-stay properties had a 9.9-percent growth in rates in 2006, the biggest one-year increase ever reported. Furthermore, RevPAR for all tiers of the extended-stay market is at record levels.
Due to comparisons to hurricane-related business in late 2005, occupancy was down sharply in the fourth quarter of ‘06. Yet, demand for the segment increased 2.5 percent for the year.
Some forecasts for the segment from The Highland Group: construction starts will continue to grow significantly, occupancy will decline but average rates will continue to outpace the rate of inflation for the foreseeable future.
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