Higher occupancy. Longer stays. Leaner ops. NewGen Advisory’s dedicated extended stay practice helps owners, operators, and institutional investors enter and exit this segment with confidence.
Extended stay Margin
Extended stay segment forecast
Trailing 12 months · STR
Five-year compounded growth
Highland Group, 2025
The fundamentals aren’t cyclical. They’re structural demand drivers, cost structure, and supply dynamics that don’t reverse on the next earnings call.
Longer guest stays mean lower turnover costs, reduced OTA dependence, and more predictable NOI; while pricing still moved dynamically with the market.
Extended stay has outperformed traditional lodging in every major downturn of the past two decades. Corporate, healthcare, and project-based demand doesn’t pause for recessions.
Less housekeeping, smaller F&B footprint, and roughly 40% lower staffing per occupied room versus full-service. The net effect is higher GOP flow-through to your bottom line.
Construction starts have been constrained for the better part of a decade, while demand drivers — corporate relocation, healthcare, project work — have only intensified.
Compiled from STR, the Highland Group’s Extended-Stay Lodging Report, and NewGen Advisory’s trailing-twelve-month transaction database.
Sources: STR · Highland Group Extended-Stay Lodging Report · NewGen Advisory internal · TTM as of Q1 2026
Tell us about the property. Our team will respond within one business day with a no-obligation read on where it sits in today’s market — and what that means for you.
Not ready for a valuation? If you’re newer to the segment and just want a market education, email Dan, Ami, or Ryan below — they’re happy to do a 30-minute primer call.
That’s the shape of the segment — and the conversation our team has every week.
Dan co-founded NewGen Advisory and leads the firm. He has personally advised on extended stay transactions across every major flag and most U.S. markets — and remains hands-on with the practice’s most consequential mandates.
Ami leads NewGen’s extended stay engagements end-to-end — from first valuation conversation through close. Her work spans franchised flags, institutional, and conversion plays across primary and secondary markets.
Ryan brings two decades of hospitality M&A experience to the segment. He counsels first-time extended stay buyers, repeat investors, and owners on acquisition strategy, underwriting, and dispositions.