HENDERSONVILLE, Tennessee—Smith Travel Research defines all-suite properties as hotels where all guest rental units consist of one or more bedrooms and a separate living area. Many suites contain kitchenettes or mini-refrigerators. All-suite properties often have no integrated dining facilities available; however, many offer complimentary breakfast. Some of the larger brands in this segment are Residence Inn, Comfort Suites, Embassy Suites and Candlewood Suites.
This segment has an interesting history in the U.S.—in its heyday in the late 1990s, all-suite properties experienced sharp supply and demand growth. The 12-month moving average for supply peaked at 19.6 percent in March 1999. The demand 12-month moving average peaked at 19.0 percent in August 1999.
As of January 2009, the composition of the all-suites segment was 5,944 properties with 660,660.
The all-suite segment experienced positive demand growth up until recently. January 2009, demand in the segment dropped -4.5 percent—the first large negative demand performance month for the segment. However, the 12-month moving average for demand in the segment is at 2.1 percent. The only time the segment’s 12-month moving average for demand went negative was in early 2002 for seven months (starting February 2002). Supply growth remains robust compared with the supply growth for the total U.S. The all-suite segment’s supply growth 12-month moving average percent change is 7.7 percent, and for January 2009, the year-over-year change was 8.0 percent.
Driven by this heavy supply growth, the occupancy 12-month moving average percent change is -5.1. January 2009 monthly results were -11.6 percent, so the segment can expect continued occupancy declines.
Other performance metrics for the all-suite segment show decreases. The occupancy declines have impacted revenue per available room. The RevPAR 12-month moving average declined 4.4 percent. The 12-month moving average for average daily rate percent change is 0.9 percent. ADR first registered negative in monthly results in October 2008. Even with declines, the segment outperformed the total U.S. results in all three metrics in January 2009, 12-month moving average.