Extended stay is closer to multifamily than most investors expect — contracted demand, lower OpEx per occupied room, and roughly 100–300 basis points of cap rate spread over full-service comps. For first-time hospitality investors, it’s usually the most natural entry point. Most institutional buyers hold five to seven years and exit to a REIT or 1031 buyer; owner-operators tend to hold longer.
That’s the shape of the segment — and the conversation our team has every week.