PUBLISHER: The Business Research Company | PRODUCT CODE: 1669608
PUBLISHER: The Business Research Company | PRODUCT CODE: 1669608
An extended-stay hotel is a lodging establishment specifically designed to accommodate individuals or groups requiring housing for an extended period, surpassing the typical duration of a short-term stay at a conventional hotel. These hotels provide fully furnished suites or rooms equipped with amenities such as kitchenettes or full kitchens, catering to guests in need of accommodation for weeks, months, or an even more extended duration.
Extended-stay hotels are typically categorized into economic, middle, and luxury segments. The economic category denotes hotel rooms that are more affordable than first-class accommodations. The varying durations of stay include weekly and long-term options. Bookings can be made by different types of tourists, including domestic and international visitors, through various channels such as online platforms, phone reservations, or in-person arrangements. These establishments serve a diverse range of applications, including travelers, business customers, trainers and trainees, government and military personnel, and others.
The extended stay hotel market research report is one of a series of new reports from The Business Research Company that provides extended stay hotel market statistics, including extended stay hotel industry global market size, regional shares, competitors with an extended stay hotel market share, detailed extended stay hotel market segments, market trends and opportunities, and any further data you may need to thrive in the extended stay hotel industry. This extended stay hotel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The extended stay hotel market size has grown strongly in recent years. It will grow from $57.09 billion in 2024 to $61.3 billion in 2025 at a compound annual growth rate (CAGR) of 7.4%. The growth in the historic period can be attributed to business travel demand, economic factors, globalization, evolving travel, workforce mobility
The extended stay hotel market size is expected to see strong growth in the next few years. It will grow to $82.41 billion in 2029 at a compound annual growth rate (CAGR) of 7.7%. The growth in the forecast period can be attributed to remote work culture, growth in medical tourism, sustainability and wellness focus, shift in housing preferences, family travel accommodations. Major trends in the forecast period include flexible and hybrid spaces, tech integration for personalization, contactless services, enhanced amenities, health and safety standards.
The expanding tourism sector is anticipated to drive the growth of the extended-stay hotel market in the future. Tourism is a cultural, social, and economic phenomenon characterized by individuals traveling to countries or locations outside their usual environment for personal, business, or professional purposes. Extended-stay hotels provide travelers, business clients, and others with home-like comfort by offering various amenities and services, such as cleaning and cooking, to help them remain productive in a new city or location. For example, in May 2024, the Office for National Statistics, a UK-based executive office of the UK Statistics Authority, reported an increase in visits to the UK by international visitors in 2023 compared to 2022, rising from 31.2 million in 2022 to 38.0 million in 2023. Therefore, the growth of the tourism sector is driving the expansion of the extended-stay hotel market.
The rising number of businesses is expected to contribute to the growth of the extended-stay hotel market. Business activities encompass commercial, professional, or industrial endeavors involving the exchange of goods, services, or money for profit. Extended hotel stays offer various advantages for businesses, addressing diverse needs such as corporate relocations, extended work assignments, and long-term projects. For example, in July 2023, the Economic Innovation Group reported a significant increase in business applications, with nearly 2.7 million submissions between January and June 2023, reflecting a 5% rise from 2022 and a notable 52% surge compared to the corresponding period in 2019. Consequently, the growing number of businesses is a key driver behind the extended-stay hotel market's growth.
Innovations within extended-stay hotels represent a prominent trend gaining traction in the extended-stay hotel market. Leading companies in this market are introducing novel brands that offer distinctive experiences to maintain their competitive edge. For instance, in May 2023, Hilton Inc., a US-based hotel company, unveiled Project H3, a lower-midscale extended-stay brand. This new brand provides apartment-style accommodations with a flexible layout, featuring four distinct areas for guests to rest, work, prepare meals, and refresh. Catering to guests with stays of at least 20 nights, the stay includes a fully furnished kitchen equipped with a full-sized fridge, dishwasher, microwave, two-burner hob, and more. The bottom floor and lobby also house a front desk, fitness center, laundry room, and a small retail store.
Major players in the extended-stay hotel market are concentrating their efforts on developing innovative solutions, such as extended stay suite brands. These hotel chains or brands specialize in providing accommodations tailored for longer-term stays, typically featuring amenities such as fully equipped kitchens, spacious living areas, and more room compared to traditional hotel rooms. For example, in June 2023, Marriott International, Inc., a US-based hospitality company, announced the launch of 'Project MidX Studios,' aiming to provide modern comfort at an affordable price point. This midscale extended stay brand seeks to offer reasonably priced accommodations for guests seeking extended stays in the United States and Canada.
In July 2023, Noble Investment Group, a US-based real estate investment manager, purchased a 10-property portfolio of extended-stay hotel properties from WoodSpring Suites for an undisclosed amount. This acquisition aligns with Noble's strategy to strengthen its position in the extended-stay segment, which has seen increased interest due to its resilience during the pandemic. WoodSpring Suites is a US-based brand specializing in extended-stay hotels.
Major companies operating in the extended stay hotel market include Marriott International Inc., Hilton Worldwide Holdings Inc., Hyatt Hotels Corporation, Accor Group, G6 Hospitality LLC, InterContinental Hotels Group PLC, Wyndham Hotels & Resorts Inc., Choice Hotels International Inc., Extended-stay America Inc., The Ascott Limited, Sonder Holdings Inc., InTown Suites, Larkspur Landing, National Corporate Housing Inc., Kasa Living Inc., Domio Inc., Ginosi Corporation, Synergy Global Housing LLC, My Place Hotels of America LLC, Mint House Inc., Blueground, The Locale LLC, Bridge Street Motor Inn, Bungalow Hotel, Corporate Worldwide Stay LLP, Le Square Phillips, Les Suites Hotel, WaterWalk Hotel Apartments, Zeus Living Inc., Crestwood Suites Hotel
North America was the largest region in the extended stay hotel market in 2024. The regions covered in the extended stay hotel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the extended stay hotel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The extended-stay hotel includes revenues earned by entities through food services, housekeeping services, pet-friendly accommodations and cleaning services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Extended Stay Hotel Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on extended stay hotel market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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 historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.