In an economy shredded by COVID-19, there have been some major winners and some major losers in terms of profitability.
Big-chain hotels with one-to-three-night average stays landed on the not-so-lucky list. With travel screeching to a halt and stay-at-home orders in place, most chain hotels were forced to shut down completely, losing an incredible amount of revenue.
Extended-stay and long-term rentals, however, are coming out on top. Considered residences, extended stays remained open and faced far less restriction during the shelter-in-place orders. Additionally, when borders closed earlier this year, many travelers were forced to hunker down in place rather than returning home. Extended stay residences were welcome sanctuaries over hotels for these people.
Across the board, they’ve seen consistency in revenue and will likely continue to be a top option for people looking for temporary housing.
Amenities such as kitchens appeal to those looking to travel without the need to visit restaurants. Less turnover creates the perception of “cleaner” – which also appeals to travelers. We see this trend across our own portfolio of extended-stay residences and expect this upward trend to continue.