Extended-stay lodging: A new high-return product

Abstract

In the USA a relatively new real estate product called extended-stay lodging should become as established a finan­cial asset as limited-service hotels or apartment complexes. The potential for superior financial performance is based on assump­tions of tightly controlled development costs, rapid 'lease-up,• high occupancy, and low operating expenses. The lower end of the extended-stay market has been pioneered by apartment companies, while the mid-market is being promoted by hotel companies that have recently entered the picture.