An extended stay hotel is a type of accommodation designed for longer-term lodging, typically catering to guests who require a place to stay for several weeks or months at a time. Unlike traditional hotels that primarily serve short-term guests, extended stay hotels offer amenities and services that cater to the needs of guests staying for an extended duration.
The extended stay hotel market consists of revenues earned by entities (organizations, sole traders and partnerships) by providing accommodation that caters to guests staying for longer periods, typically weeks or months, offering a blend of hotel amenities and apartment-like features.
The global extended stay hotel market was valued at $43,569.3 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 4.0%.
Increased Disposable Income Per Capita
Increased disposable incomes per capita fueled the growth of the extended stay hotel market during the historic period. With increased financial resources at their disposal, people were more likely to spend money on luxury experiences and leisure activities, such as extended stay hotels. This increased spending power allowed for longer and more frequent trips, creating a greater demand for accommodation that offered extended stay options. For instance, according to the Bureau of Economic Analysis (BEA), a US-based government agency that provides official macroeconomic and industry statistics, disposable personal income per capita in the United States increased to $61,047 in November 2023 from $57,339 in November 2022. Additionally, in February 2023, according to estimates from the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI), India's per capita net national income was INR 172,000 ($2,077.35). This is a nearly 100% increase over the INR 86,647 ($1,046.49) per capita income in 2014-15. Therefore, increased disposable incomes per capita drove the growth of the extended stay hotel market.
Focus On Launch Of Midscale Extended-Stay Hotel Category To Offer A Balance Between Affordability And Quality Amenities
Companies in the extended stay hotel market are introducing midscale extended stay hotels to diversify brand portfolios, targeting underserved, affordable segments. The launch of midscale extended stay hotels represents a deliberate effort to offer a balance between affordability and quality amenities, filling a previously underserved gap in the market. These establishments typically provide comfortable yet cost-effective lodging options for guests planning longer stays, featuring essential amenities such as fully equipped kitchens, spacious living areas and convenient access to recreational facilities. For instance, in June 2023, Marriott International, a US-based hospitality company, announced the launch of a new extended stay hotel brand aimed at the affordable midscale category in North America. This new brand, which has not been named yet, is designed to cater to guests seeking extended stays of at least 15 days, with a target rate of around $80 per night. The brand is expected to offer suites with in-room kitchens, laundry facilities, fitness centers and a cost-conscious approach to guestroom finishes. This initiative is part of Marriott's broader expansion into the extended-stay sector.
The global extended stay hotel market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 12.18% of the total market in 2022.
Extended Stay Hotel Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global extended stay hotel market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for extended stay hotel? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The extended stay hotel market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider extended stay hotel market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by type, by stay duration, by tourist type, by booking channel and by application.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario- The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the extended stay hotel market.
- Global Market Size And Growth- Global historic (2018-2023) and forecast (2023-2028, 2033F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by type, by stay duration, by tourist type, by booking channel and by application in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2023), historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for extended stay hotel providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Type: Economic; Middle; Luxury
- 2) By Stay Duration: Weekly; Long Term
- 3) By Tourist Type: Domestic; International
- 4) By Booking Channel: Online; On Phone; In-Person
- 5) By Application: Travelers; Business Customers; Trainers and Trainees; Government And Army Staff; Other Applications
- Companies Mentioned: Marriott International Inc.; Accor SA; InterContinental Hotels Group plc; Hilton Worldwide Holdings Inc.; Wyndham Hotels & Resorts Inc.
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; Italy; Spain; UK; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; extended stay hotel indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.