REPORT: MARCH MARKS FIRST MONTHLY DECLINE IN EXTENDED-STAY REVENUES IN THREE YEARS

TOTAL REVENUES FROM extended-stay hotel rooms fell by 0.2 percent in March, marking the first monthly decline in over three years, according to The
Highland Group. However, the revenue decline was smaller than the 1.6 percent contraction estimated by STR/CoStar for the overall hotel industry.

Meanwhile, extended-stay room supply increased by 2.7 percent in March, a slight uptick compared to the average monthly growth over the past two years, the
report said. This marks the 30th consecutive month of supply growth at 4 percent or less, with the annual change remaining below 2 percent for two years. However,
both these figures lag behind the long-term average.

The 14.2 percent rise in economy extended-stay supply, coupled with a small increase in mid-price segment rooms, primarily stems from conversions, The Highland
Group said. New construction in the economy segment is estimated to account for approximately 3 percent of open rooms compared to one year ago.