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

Based on Type, the market is segmented into Economic, Middle, Luxury, and Others. The most common type of Extended Stay Hotel typically falls under the economic or middle category. These hotels are designed to provide affordable and comfortable accommodations for guests who need to stay for an extended period, often weeks or months. They offer amenities and services suited for longer stays, such as fully equipped kitchens or kitchenettes, laundry facilities, and spacious living areas. While they may not have the same level of luxury as high-end hotels, they provide a balance of comfort, convenience, and affordability for guests looking for extended-stay options.

Extended Stay Hotel Market, By Application

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

Based on Application, the market is segmented into Travelers, Business Customers, Trainers and Trainees, Government and Army Staff, and Others. Extended Stay Hotels are popular among business travelers who are on comprehensive assignments or projects in different locations. These hotels provide them with the convenience of a home-like environment while they are away from their actual homes. Many companies prefer Extended Stay Hotels for their employees who are on long-term business trips. These hotels offer cost-effective solutions and often have corporate rates and partnerships with companies. Professionals who conduct training programs or attend training sessions often choose Extended Stay Hotels. These hotels provide comfortable accommodations and facilities conducive to conducting training activities.

Extended Stay Hotel Market, By Tourist Type

• Domestic
• International

Based on Tourist Type, the market is segmented into Domestic, International, and Others. The most common tourist type that utilizes Extended Stay Hotels can vary depending on the location and context. However, international tourists are more likely to opt for Extended Stay Hotels compared to domestic tourists. International tourists often choose Extended Stay Hotels because they tend to stay in a destination for a longer duration compared to domestic tourists. They may be visiting for purposes such as exploring a new country, studying abroad, working temporarily, or experiencing an extended vacation. Extended Stay Hotels offer them the comfort, convenience, and amenities they need during their extended stay away from home.

Extended Stay Hotel Market, By Booking Channel

• Online
• On Phone
• In-person

Based on the Booking Channel, the market is segmented into Online, On Phone, In-person, and Others. In recent years, online booking has become the most commonly used channel for booking Extended Stay Hotels. The convenience and accessibility of online platforms have made them popular among travelers. With the increasing availability of online travel agencies (OTAs), hotel booking websites, and hotel aggregators, online booking has become the most popular and commonly used channel for booking Extended Stay Hotels. Travelers can browse through various options, compare prices, read reviews, and make reservations directly on these platforms. Online booking provides flexibility, transparency, and the ability to easily compare different hotels and rates.

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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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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