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Kalibri Labs has released a special report evaluating U.S. hotel performance using length of stay and rate category metrics for March 2020, the first month of the COVID-19 pandemic, with comparisons to full-year 2019. The report specifically illustrates the distinctions between the extended-stay hotel category and the traditional hotel model, and delves into upper-tier and lower tier extended-stay hotel performance. Business mix plays a significant role as a driver of performance, with pronounced differences in COVID-19’s impact by hotel category, length of stay, and rate category.

Extended-stay hotel guest-paid RevPAR performed 14.4 percent better than the non-extended-stay hotels in the total U.S. during the first full month of COVID-19’s impact, which is the only month in the last five years that this has occurred. Lower tier extended-stay hotels specifically drove the extended-stay resiliency at a -30 percent March 2020 year-over-year guest-paid revenue compared to -48 percent for upper-tier extended-stay hotels and -54 percent for all non-extended-stay hotels.

Many of the fundamentals that made extended-stay hotels attractive over the last decade also mitigated its COVID-19 impact, according to Kalibri Labs. In 2019, 40 percent of extended-stay hotel revenue was driven by demand staying seven nights or more as compared to 9 percent for non-extended-stay hotels. In March 2020, longer length of stay hotel demand was not as severely impacted as the shorter length of stay hotel demand.

Within the segment, lower tier extended-stay hotels were the least affected by the COVID-19 crisis. In March, shorter length of stay business (1-6 nights) felt the most impact in both extended-stay categories, but lower tier extended-stay hotels proved more resilient across all length of stay tiers.

Photo: Element Scottsdale at SkySong


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