Market Overview:
Extended stay hotel market size was valued at USD 54.52 billion in 2023. The extended stay hotel industry is projected to grow to USD 146.04 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.6% during the forecast period (2024 – 2032).Β
Market Definition:
An extended stay hotel is a type of accommodation where guests can book rooms and stay for an extended period, as opposed to a typical hotel. Usually, these hotels provide guests with an apartment or suite that includes amenities like a kitchen, living area, and sometimes a washer/dryer. Guests typically have the option to book lodging for either seven days or thirty days, allowing them the flexibility to prolong their visit if needed.
Growth Drivers and Opportunities:
- Businesses are increasingly using flexible work options and global assignments, which means employees require accommodations that go beyond temporary fixes. Extended-stay hotels, which offer homelike amenities and a variety of service options, are ideal for meeting this requirement.
- The growing emphasis on creating a comfortable environment, such as kitchens and living spaces with essential amenities, is becoming increasingly evident. Hotels are investing in technology and staff training to meet the growing demand for personalized and comfortable accommodation experiences, reflecting a trend toward increased consumer preferences.
Key Players:
The industry is marked by fierce competition, and the leading companies rely on innovative technology, superior goods, and a strong brand identity to boost sales. Here is the list of the leading companies operating in the extended stay hotel market:
Key Companies in Extended Stay Hotel Market
- Marriott International (Residence Inn, TownePlace Suites)
- Hilton Worldwide (Homewood Suites, Home2 Suites)
- InterContinental Hotels Group (IHG) (Staybridge Suites, Candlewood Suites)
- Hyatt Hotels Corporation (Hyatt House)
- Extended Stay America
- The Ascott Limited (Ascott The Residence)
- Country Inn & Suites by Radisson
- Element by Westin
- Staycity Aparthotels
Segmentation Overview:
Extended Stay Hotel Market, Tourist Type Outlook (Revenue – USD Billion, 2019-2032)
- Domestic
- International
Extended Stay Hotel Market, Application Outlook (Revenue – USD Billion, 2019-2032)
- Travelers
- Business Customers
- Others
Extended Stay Hotel Market, Booking Channel Outlook (Revenue – USD Billion, 2019-2032)
- Online
- On-Phone
- In-Person
Extended Stay Hotel Market, Type Outlook (Revenue – USD Billion, 2019-2032)
- Economy
- Mid-Range
- Luxury/Upscale
The extended stay hotel market is mainly segmented based on type, tourist type, booking channel, application, and region. Based on type analysis, the economy segment led the market due to its popularity among cost-conscious travelers and widespread availability in urban and suburban areas. This area flourishes due to its high number of occupied units offering cost-effective extended stay choices for both business and leisure guests.
Moreover, according to tourist type analysis, the domestic segment led the market, driven by numerous local business trips, relocations, and prolonged vacations. This specific region remains resilient due to its ongoing need for cost-effective and cozy lodgings over extended periods.
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https://www.polarismarketresearch.com/industry-analysis/extended-stay-hotel-market
Extended Stay Hotel Industry Developments:
- In August 2024, Extended Stay America unveiled plans to launch multiple new properties in major metropolitan areas across the United States, demonstrating its dedication to growth and addressing the rising demand for extended-stay accommodations.
- In June 2024, Marriott International announced the opening of a new Residence Inn in Toronto, Canada, further strengthening its presence in the vital North American market.
Extended stay hotels are popular among business travelers, temporary relocations, and individuals in transition, offering a more home-like environment compared to traditional hotels. The market includes both standalone extended stay properties and branded hotel chains with dedicated extended stay sections. The growth of the global extended stay hotel market is driven by increasing demand for long-term accommodations from business travelers, relocating families, and extended vacations. Other key factors driving the market growth include the rise of remote work and digital nomadism, which have intensified the need for flexible living arrangements.