Extended-stays, the sleeper hit in the hotel industry
Excerpt from HotelNewsNow
Extended-stay hotels attracted significant investment and demand during 2012—a trend that’s likely to continue in the year ahead….[it] saw more than $1 billion in new investment during the 12-month period.
Economy extended-stay hotels alone drew more than $800 million with Starwood Capital Group’s purchase of Intown Suites in October and Lindsay Goldberg LLC’s $100-million capital investment in Value Place….Another indicator of confidence in the sector was the marked increase in conversions and rebranding of extended-stay hotels, some of which will have come out of foreclosure.
Annual extended-stay hotel demand has not declined in 20 consecutive years. Even in the deep recession of 2009 extended-stay hotels reported a small increase in demand.