Real Estate
Extended Stay Hotels ‘Print Money’ for Investors in Covid-19 Downturn
First American News LLC, Raleigh NC: Demand for extended stay accommodations has been high during the pandemic and shows no signs of easing
Leisure travel flourished after Covid-19 lockdowns eased. Business travel is still depressed. But one type of lodging has filled rooms throughout the pandemic: extended stay hotels.
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These properties, which cater to guests staying a week to three months, were popular with first responders, nurses, military and construction workers during the early months of Covid-19. As the pandemic wore on and more Americans began to travel, they attracted vacationing families, project managers and information technology workers.
Now as real-estate investors look beyond the pandemic, demand for extended stay properties shows no sign of fading.
Blackstone Inc. and Starwood Capital Group, two of the largest real-estate investors in the U.S., agreed this month to jointly purchase 111 extended-stay hotels under the WoodSpring Suites brand for about $1.5 billion. The deal came less than a year after the same two firms bought Extended Stay America Inc. for about $6 billion.
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