REPORT: U.S. EXTENDED-STAY ROOM SUPPLY GROWTH SUBDUED IN 2022

EXTENDED-STAY HOTEL room supply in the 100 largest metropolitan statistical areas in the U.S. grew 2.5 percent in 2022 compared to 2021, its smallest increase
in several years, according to a new report from The Highland Group. The survey, which researched supply, demand, revenues and new construction of extended-stay
hotels, said the outcome in 2022 was about half the net supply gain reported in 2021.

According to the report, the lengthening hotel development timeline, fewer construction starts, disenfranchising hotels that no longer meet brand standards,
conversions to apartments and some municipalities acquiring extended-stay hotels for housing have resulted in the muted growth.

While there was a sharp decline in reported extended-stay rooms under construction last year compared to 2021, construction starts increased 6 percent over the
last 12 months. “However, they remain low compared to the pre-pandemic period, the report noted.

RevPAR growth in 2022 strongly favored ADR as opposed to occupancy gains in 2021. “Consequently, more than 40 MSAs reported lower average occupancy in 2022 than
during the previous year. However, only a dozen MSAs have not yet recovered RevPAR back to its nominal 2019 value compared to about half the MSAs last year,” it
showed.