REPORT: VARIED TRENDS AFFECT EXTENDED-STAY HOTELS IN DECEMBER

EXTENDED-STAY HOTELS DISPLAYED varied performance in December compared to the overall hotel industry, with supply, demand, and room revenues showing
relative gains, according to The Highland Group. Occupancy experienced a milder decline than the broader hotel sector while low ADR growth and an unexpected
decline in economy extended-stay RevPAR resulted in a total extended-stay hotel RevPAR decrease versus a slight RevPAR increase in the overall hotel industry.

The 2.4 percent net increase in extended-stay room supply in December represents a modest rise compared to the average over the past 18 months and a slight
gain over the most recent three months, the report said.

Supply shifts overview

December marked nine consecutive quarters with 4 percent or less supply growth, significantly below the long-term average, according to The Highland report.
The 13 percent surge in economy extended-stay supply and the reduction in mid-price segment rooms are primarily attributed to conversions, with new construction
in the economy segment accounting for approximately 3 percent of rooms compared to a year ago.