Global Extended Stay Hotel Market Size By Type (Economic, Middle, Luxury), By Application (Travelers, Business Customers), By Tourist Type (Domestic, International), By Booking Channel (Online, On Phone), By Geography Scope And Forecast

Extended Stay Hotel Market Size And Forecast

Extended Stay Hotel Market size was valued to be USD 54.51 Billion in the year 2023 and it is expected to reach USD 140.58 Billion in 2031, at a CAGR of 11.8% over the forecast period of 2024 to 2031.

• An extended stay hotel is a type of lodging accommodation designed for guests who require longer-term stays, typically ranging from a week to several months.
• Extended stay hotels are equipped with amenities that cater to the needs of extended-stay guests, such as fully-furnished suites with kitchen facilities, separate living and sleeping areas, and dedicated workspaces, enabling a home-like environment for prolonged stays.
• These hotels are commonly utilized by business travelers, corporate professionals on extended assignments, relocating families, and individuals undergoing medical treatments or renovations at their primary residences, providing a comfortable and convenient alternative to traditional hotels or short-term rentals.
• The extended stay hotel market is expected to experience significant growth in the future, driven by factors such as increasing business travel, corporate relocation programs, and the growing trend of remote work and digital nomadism, which necessitates accommodation solutions that offer more space, flexibility, and amenities for extended periods.

Global Extended Stay Hotel Market Dynamics

The key market dynamics that are shaping the Extended Stay Hotel Market include

Key Market Drivers

• Increased Business Travel and Corporate RelocationsThe extended stay hotel market is being driven by the growing demand for temporary housing solutions among business travelers, consultants, and corporate professionals who require accommodation for extended periods due to work assignments, training programs, or relocation initiatives.
• Prevalence of Remote Work and Digital NomadismThe rise of remote work and the digital nomad lifestyle is fueling the need for extended stay accommodations that offer a comfortable living environment, workspace amenities, and flexibility for longer-term stays.
• Preference for Home-Like AmenitiesTravelers seeking an alternative to traditional hotels are increasingly preferring extended stay accommodations, which provide a home-like experience with fully-equipped kitchens, separate living areas, and additional amenities that cater to longer-term stays.
• Cost-Effectiveness for Extended StaysExtended stay hotels often offer more cost-effective rates compared to traditional hotels for longer durations, making them an attractive option for individuals or families requiring prolonged accommodation, such as those undergoing medical treatments or home renovations.
• Growth of the Gig EconomyThe increasing prevalence of the gig economy and contract-based employment is contributing to the demand for extended stay accommodations, as freelancers, contractors, and temporary workers seek flexible housing solutions while working on projects or assignments in different locations.

Key Challenges

• Maintaining High Occupancy RatesExtended stay hotels may face challenges in maintaining high occupancy rates, particularly during off-peak seasons or economic downturns, as guests seeking long-term accommodations may be more selective or cost-conscious.
• Competition from Alternative AccommodationsThe extended stay hotel market faces competition from alternative accommodation options, such as vacation rentals, serviced apartments, and home-sharing platforms, which offer similar amenities and flexibility for extended stays.
• Balancing Guest ExpectationsMeeting the diverse expectations and preferences of extended stay guests can be challenging, as they may have varying requirements for amenities, services, and living spaces depending on the purpose and duration of their stay.
• Staffing and Operational CostsOperating extended stay hotels can be more labor-intensive and costly compared to traditional hotels, as they require dedicated staff for housekeeping, maintenance, and guest services to cater to the needs of long-term guests.
• Adapting to Changing Travel TrendsThe extended stay hotel market must adapt to evolving travel trends, such as the increasing demand for sustainable and eco-friendly accommodations, as well as the integration of technology and smart features to enhance the guest experience.
• Compliance with Local RegulationsExtended stay hotels may face challenges in complying with local zoning regulations, building codes, and tax laws, as some areas may have specific requirements or restrictions for accommodations intended for long-term stays.

Key Trends

• Integration of Smart Technology and Internet of Things (IoT)Extended stay hotels are increasingly incorporating smart technology and IoT-enabled devices to enhance the guest experience, including voice-controlled assistants, automated check-in/check-out systems, and connected appliances for improved convenience and efficiency.
• Emphasis on Sustainability and Eco-Friendly PracticesThere is a growing trend towards sustainable and environmentally conscious practices in the extended stay hotel industry, such as implementing energy-efficient measures, water conservation initiatives, and eco-friendly amenities to cater to environmentally conscious guests.
• Personalization and CustomizationExtended stay hotels are focusing on providing personalized experiences and customized services to their guests, tailoring amenities, in-room technologies, and packages based on individual preferences and needs for a more immersive and memorable stay.
• Expansion of Co-Living and Community SpacesTo foster a sense of community and cater to the social needs of extended stay guests, hotels are incorporating co-living spaces, communal areas, and shared amenities that encourage interaction and networking among guests.
• Integration of Wellness and Health-Focused OfferingsIn response to the increasing emphasis on health and well-being, extended stay hotels are incorporating wellness facilities, fitness centers, healthy dining options, and wellness programs to cater to health-conscious guests during their extended stays.
• Adoption of Flexible Pricing and Revenue Management StrategiesExtended stay hotels are implementing flexible pricing and revenue management strategies to optimize occupancy rates and profitability, offering dynamic rates based on demand, length of stay, and other factors.

Global Extended Stay Hotel Market Regional Analysis

Here is a more detailed regional analysis of the Extended Stay Hotel Market

North America

• North America dominates the extended stay hotel market, driven by a well-established corporate travel culture, a large mobile workforce, and a high concentration of multinational corporations and businesses.
• The United States, in particular, is the largest market for extended stay hotels, as the concept originated and gained significant traction in the country, catering to the needs of business travelers and corporate relocations.
• The extended stay hotel market in North America benefits from the region’s robust economy, a thriving business environment, and the presence of major industry players and hotel chains specializing in extended stay accommodations.
• Additionally, the convenience and cost-effectiveness of extended stay hotels for extended business trips, corporate housing, and temporary relocation have contributed to the market’s dominance in North America.

Asia Pacific

• The Asia Pacific region is experiencing rapid growth in the extended stay hotel market, fueled by increasing business travel, corporate expansions, and the growing popularity of the extended stay concept among leisure travelers.
• Countries like China, India, and Japan are witnessing a surge in demand for extended stay accommodations, driven by factors such as economic growth, urbanization, and the rise of the middle class.
• The influx of multinational corporations and the expansion of existing businesses in the Asia Pacific region have contributed to the demand for extended stay hotels, accommodating corporate professionals on long-term assignments or relocations.
• The region’s growing tourism industry and the trend of longer vacations are also driving the demand for extended stay accommodations, as travelers seek more spacious and home-like experiences for extended stays.
• The development of infrastructure, transportation networks, and business hubs in emerging economies within the Asia Pacific region is expected to further fuel the growth of the extended stay hotel market in the coming years.

Global Extended Stay Hotel Market Segmentation Analysis

The Global Extended Stay Hotel Market is segmented based on Type, Application, Tourist Type, Booking Channel, And Geography.

Extended Stay Hotel Market, By Type

• Economic
• Middle
• Luxury

So, when we talk about the type of extended stay hotel, we usually break it down into categories like Economic, Middle, Luxury, and, well, Others. You'll usually find the most common extended stay hotels in that economic or middle-ground range. Think affordable comfort for folks needing a place to crash for weeks or even months! They're designed for longer stays, with stuff like fully equipped kitchens or kitchenettes, laundry facilities, and plenty of living space. Sure, you might not get the same fancy frills as a luxury hotel, but you're getting a good mix of comfort, convenience, and, most importantly, a price that won't break the bank for your extended stay.

Extended Stay Hotel Market, By Application

• Travelers
• Business Customers
• Trainers and Trainees
• Government and Army Staff
• Others

So, when we look at who uses these hotels, we see different groups like Travelers, Business Customers, Trainers and Trainees, and even Government and Army Staff, plus "Others." Think about it – Extended Stay Hotels are a hit with business folks on those super-long assignments. They get that feeling of being at home, even when they're miles away. A lot of companies actually prefer these for their employees on extended trips because they're cost-effective. Plus, they often have sweet deals and partnerships. And if you're running or attending training programs? Yep, these hotels are a good choice. They're comfy and set up well for getting training done.

Extended Stay Hotel Market, By Tourist Type

• Domestic
• International

So, when we look at Tourist Type, we break it down into Domestic, International, and Others. Who uses Extended Stay Hotels the most? Well, it really depends. But, generally speaking, you see international tourists choosing them more often than folks from the same country. Why? Because they're usually sticking around longer! Think about itthey might be checking out a new country, maybe studying abroad, or even working a temporary job. Extended Stay Hotels give them that home-away-from-home vibe with all the comfort and amenities they need for their adventure.

Extended Stay Hotel Market, By Booking Channel

• Online
• On Phone
• In-person

Think about how you book your hotel. That's how the market breaks downOnline, On the Phone, In-person, and even a few other ways. But let's be real, who isn't booking online these days, especially for extended stays? It's just so much easier! All those OTAs, hotel booking sites, and those sites that compare everything for you – they've made online booking the go-to for Extended Stay Hotels. You can check out all the options, see what people are saying in the reviews, and book right there. It's flexible, you see everything up front, and you can easily compare hotels and prices.

Key Players

The “Global Extended Stay Hotel Market” study report will provide valuable insight with an emphasis on the global market including some of the major players such as Hilton Worldwide, Choice Hotels International, InterContinental Hotels Group, Holiday Inn, Marriot, Hyatt, Wyndham Hotel Group, Extended-stay America, Candlewood Suites, OYO Rooms, Orange Hotel, 7 Days Inn and Ibis.

Our market analysis also entails a section solely among others. Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Extended Stay Hotel Market Recent Developments

• In August 2022, Wyndham announced to launch economy extended stay brand hotel under the project name Echo. Wyndham signed the first 50 hotels for the development of the extended stay hotels project. The prototype features a single room of 300 square foot studio suits with in-suite kitchenettes.
• In July 2022, Aimbridge Hospitality acquired 89 rooms in Staybridge Suites Eagan, 94 keys in Extended Stay America, and Candlewood Suits, and added a trio of extended stay hotels in their portfolio.

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We dig deep into the market, using both numbers and other important stuff to understand different groups of customers. You'll get the market size (in USD Billion!) for each of these groups, big and small. We'll also point out the region and customer group that's likely to grow the fastest and be the biggest. Plus, we'll break down each region to show you how much of the product or service they use and what's influencing their choices. See how the big players stack up against each other, including their latest product launches, partnerships, expansions, and acquisitions over the last five years. We provide detailed profiles of these companies with overviews, insights, product comparisons, and SWOT analysis. Get a feel for where the market is now and where it's headed, considering recent events and the opportunities, drivers, challenges, and restraints in both new and established regions. We'll also give you a thorough look at the market from different angles using Porter's five forces analysis. You'll gain valuable insights into the market through its value chain. Understand the market's momentum, along with upcoming growth opportunities. And to top it off, we offer 6 months of analyst support after your purchase.

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