EXTENDED-STAY ROOM SUPPLY increased by 1.8 percent in February due to it being a leap year, consistent with the average monthly increase observed over the
last two years, according to The Highland Group. February marked 29 consecutive months of 4 percent or less supply growth. Additionally, the change in supply has
remained below 2 percent for more than two years, with both metrics significantly falling below the long-term average.

The 18.8 percent surge in economy extended-stay supply, along with a modest increase in mid-price segment rooms, is largely attributed to conversions, The
Highland Group said. Meanwhile, new construction in the economy segment is estimated at around 3 percent of open rooms compared to a year ago.

2024 first half supply trends

Supply change comparisons have been affected by rebranding, segment realignment in The Highland Group’s database, and the de-flagging of hotels failing to meet
brand standards, along with sales to multi-family apartment companies and municipalities, the report said. This trend is expected to persist into the first half
of 2024, particularly with older extended-stay hotels still available on the market.