REPORT: EXTENDED-STAY HOTELS SEE 3.2 PERCENT ROOM SUPPLY INCREASE IN MAY

U.S. EXTENDED-STAY HOTELS room supply increased by 3.2 percent in May, slightly above the average monthly rise over the past two years, according to The
Highland Group. May marked the 32nd consecutive month with supply growth at 4 percent or less, and the annual supply increase has been under 2 percent for two years.

However, both metrics remain well below the long-term average.

The 12.8 percent increase in economy extended-stay supply, along with smaller gains in mid-price and upscale segments, is primarily due to conversions, the report
said. New construction in the economy segment accounts for only about 3 percent of rooms opened compared to a year ago.