Extended-stay hotel demand posted two consecutive quarters of growth above 16% in the first half of 2010. Demand is growing faster than the overall hotel industry, as it was emerging out of the previous downturn starting in 2002. What is very different this time is the change in supply. The growth rate in extended-stay supply started rising in 2004 and hit almost 6% in 2005 when overall U.S. hotel supply growth was essentially zero. Extended-stay hotel supply growth peaked at near 7% in 2009 but it is forecast to fall below 3% in 2010. In 2011, the projected supply growth rates for extended-stay hotels and all hotels are about the same. The main reason for this is that extended-stay room construction was the lowest for 15 years at the middle of 2010 and it is heading lower…. click here for full report…