Extended-Stay Demand Hits a Four-Year High as Supply Pipeline Thins

Demand for U.S. extended-stay hotels grew at its fastest pace in more than four years in May, even as the construction pipeline started to thin. 

For developers and brand executives, the widening gap between accelerating demand and decelerating supply points to a window of pricing power opening in 2027.

Extended-stay has outrun the broader industry for months, but May’s margin was unusually wide. 

Demand rose 6.2% in May year over year, the strongest monthly gain since February 2022, according to The Highland Group. It w