Extended Stay America weathering pandemic better than rivals

Revenue per available room went up each month of the third quarter

National Weekend Edition /
Dec.December 05, 2020 09:00 AM
Extended Stay America CEO Bruce Haase (Extended Stay, HomeWell Francising)

Extended Stay America CEO Bruce Haase (Extended Stay, HomeWell Francising)

Hotel chain Extended Stay America has managed to outperform other lodging companies in what’s been an awful year for the industry.

While lodging companies including Extended Stay have generally underperformed the broader market, the firm has managed to stay profitable this year, according to the Wall Street Journal.

Extended Stay’s revenue over the last nine months is down 16 percent from the same period last year. Marriott International reported a 46 percent decline in revenue between those periods. Choice Hotels International and Wyndham Hotels And Resorts have also seen larger declines than Extended Stay.

Revenue per available room, a key metric for lodging companies, was up in all three months of the third quarter at Extended Stay properties.

Extended Stay is the only chain that focuses entirely on long-term stays. Part of its relative stability could be attributed to shifting demand for longer stays at hotels.

The company has also seen continued demand for business travel. Typical sources of such business — such as government and retail workers — are down, but the company has seen a boost in demand from the warehousing, logistics, construction and temporary medicine sectors.

The industry’s average occupancy nationwide is under 50 percent and the situation has become dire enough at some companies that lenders are selling their mortgages — or trying to, at least.

Hotels across the country have laid off workers and cut costs in other ways. Extended Stay, though, has not done any layoffs related to the pandemic.

 

[WSJ] — Dennis Lynch


Related Articles

arrow_forward_ios
(Getty, iStock)

Booster shot: NYC real estate sees salvation in vaccine

Booster shot: NYC real estate sees salvation in vaccine
Before the pandemic, national tenants paid 94 percent of rent. (Getty)

Retail rent collections rebound to 90%

Retail rent collections rebound to 90%
Carmine’s battles landlord over unpaid rent. (Getty, Carmine's)

Carmine’s in Times Square sues landlord to stave off eviction

Carmine’s in Times Square sues landlord to stave off eviction
The “Raising The Bar Recovery Fund” will distribute a collective $3 million to eligible businesses across New York State. (iStock)

Struggling restaurants to get $5K lifeline from state

Struggling restaurants to get $5K lifeline from state
Clockwise from left: Donald Trump, Joe Biden, Airbnb CEO Brian Chesky, Opendoor CEO Eric Wu, Black Lives Matter protests (Illustration by The Real Deal)

For real estate, a year like no other

For real estate, a year like no other
From left: Tom Brady and Gisele Bündchen; Pharrell Williams; Sylvester Stallone and Jennifer Flavin; Jared Kushner and Ivanka Trump (Getty, iStock)

South Florida’s biggest real estate stories of 2020

South Florida’s biggest real estate stories of 2020
The Covid-19 vaccine is being distributed across the country, but it won’t provide an immediate cure for office landlords. (iStock)

Covid-19 vaccine won’t be immediate cure for office market

Covid-19 vaccine won’t be immediate cure for office market
Thor Equities’ 590 Fifth Avenue

Rising UCC foreclosures are “the tip of the iceberg”

Rising UCC foreclosures are “the tip of the iceberg”
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...