1、ResearchUnited States|February As we move into 2025 and beyond,select-service and extended-stay hotels are poised to remain a focal point for investors seeking durable returns in a volatile market.U.S.Select-Service and Extended-Stay Hotel Outlook 2025Table of Contents2U.S.Select-Service and Extende
2、d-Stay Hotel Outlook 202501Executive Summary302Robust performance,profitability and durability,despite consumer pressures403Brand proliferation in a constrained supply environment604Sector continues to attract outsized investor interest driven by strong,durable returns805Increased lender diversifica
3、tion driven by a smaller cheque size and debt market clarity1206Final Thoughts14Since 2020,the U.S.select-service and extended-stay hotel sector has transformed into a unified market,offering a blend of amenities to meet evolved traveler preferences,with recent positive trends reinforcing its appeal
4、 as an investment opportunity.The sectors growth in 2024 was marked by record-breaking RevPAR reaching$78,14%above 2019 levels,as well as demand surging by 232,000 room nights year-over-year,almost fully recovered from 2019.The sector also demonstrates superior operational efficiency,consistently ac
5、hieving higher profit margins than their full-service counterparts.Furthermore,the sectors overall profitability has proven resilient to inflation,with growth rates exceeding CPIs upturn over the last four years.Brand proliferation has been significant,with the sector now boasting 214 total hotel br
6、ands.Given todays lack of organic supply growth,hotel brand companies are now prioritizing M&A and conversions to boost continued net unit growth.Since 2021,the sector has attracted$62.6 billion in investment volume driven by increased activity from owner-operators,HNWIs,and private equity firms.Inv