Select-service and extended-stay hotels poised to outperform their rivals

Not all hotels are created equal — or hotel categories, depending on prevailing economic trends. The hotel category has been hot — despite formidable competition from Airbnb and other sharing-economy players of its ilk — but the hotel category is cooling.

Demand is forecast to grow modestly this year for many hotels, but significantly better for premium select-service and extended-stay hotels. They are one of the best performing real estate investments in today’s market and should not be confused with the overall lodging sector, according to a new report from JLL. Investors’ appetite for select-service and extended-stay hotels is on the rise as they look to deploy capital in higher-yield investment opportunities with defensive characteristics, the report says.

At the core, the attributes that make this sector so attractive are its streamlined operations, technology-focused amenities, and lean staffing models with cross-trained personnel. Collectively, the rep