As a result, demand for extended-stay lodging is growing faster than demand for the traditional “transient” hotel sector, according to research firm the Highland Group. In the first half of 2006, it was 5.1 percent higher than in the same period in 2005, compared with a 2.4 percent increase in demand for traditional hotels. (Extended-stay hotels account for only about 6 percent of the nation’s room stock, however.) Prices for these hotel-apartments were up almost 10 percent, after rising 7 percent the year before. Rooms average $111 a night, reports the Highland Group.
The biggest growth is in upscale long-term lodging. Earlier this year, Extended Stay Hotels redesigned the rooms in its Deluxe chain, with fancier shower heads and in-room DVD players. Starwood recently announced its “upper upscale” Project ESW, with gourmet pantries and extra-large fitness centers. You know, to work off all those high-priced meals you can now expense.
