Extended Stay Hotel Market
The market for Extended Stay Hotel was estimated at $67.8 billion in 2024; it is anticipated to increase to $122 billion by 2030, with projections indicating growth to around $199 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global Extended Stay Hotel Market Outlook
Revenue, 2024
$67.8B
Forecast, 2034
$180B
CAGR, 2025 - 2034
10.29%
The Extended Stay Hotel industry revenue is expected to be around $74.7 billion in 2025 and expected to showcase growth with 10.29% CAGR between 2025 and 2034. The trend, towards offering extended lodging options coupled with top notch facilities showcases the industrys ability to adjust and stay significant in todays constantly evolving global tourism scene.
Extended Stay Hotels offer roomy and well equipped suites that blend comfort and convenience seamlessly to cater to a range of guests - from business professionals to families on holiday trips alike; thus meeting the demand, for affordable yet upscale lodging choices in a market that continues to expand steadily.
Market Key Insights
- The Extended Stay Hotel market is projected to grow from $67.8 billion in 2024 to $180 billion in 2034. This represents a CAGR of 10.29%, reflecting rising demand across Extended Stay Rental Service, Business Travel Accommodation and Transitional Living Solution.
- Extended Stay America, Homewood Suites by Hilton, Staybridge Suites are among the leading players in this market, shaping its competitive landscape.
- U.S. and China are the top markets within the Extended Stay Hotel market and are expected to observe the growth CAGR of 7.5% to 10.8% between 2024 and 2030.
- Emerging markets including Vietnam, India and South Africa are expected to observe highest growth with CAGR ranging between 9.9% to 12.9%.
- Transition like Shift Towards Customized Guest Experiences is expected to add $6 billion to the Extended Stay Hotel market growth by 2030.
- The Extended Stay Hotel market is set to add $113 billion between 2024 and 2034, with manufacturer targeting Leisure Travelers & Students Guest Demographics projected to gain a larger market share.
- With Rise in digital nomadism, and Business travel evolution, Extended Stay Hotel market to expand 166% between 2024 and 2034.
Opportunities in the Extended Stay Hotel
The rise in work and the growing trend of digital nomads have also given extended stay hotels a chance to incorporate co working areas into their facilities effectively making it easier for guests to work on site and thereby attracting more long term customers such, as remote workers and businesses.
Growth Opportunities in North America and Europe
North America's hospitality sector for extended stay accommodations flourishes fueled by a need from corporate travelers and visitors looking for longer stays in hotels. The market is highly competitive with brands like Extended Stay America and Marriott International taking the lead. There are opportunities for growth, by enhancing services to meet changing customer needs such as offering pet rooms and wellness focused amenities.
The Extended Stay Hotel market in Europe is showing growth due to the rise in both leisure and business travel activities observed in recent times. There is competition in the market with leading companies like Accor and IHG holding strong positions. Opportunities, for growth can be found in catering to the emerging trend of bleisure travel that combines work and leisure elements and providing customized services to meet a variety of customer requirements.
Market Dynamics and Supply Chain
01
Driver: Rise in Digital Nomadism, and Smart Technology Integration
One of the factors influencing the Extended Stay Hotel sector is also the rise of the digital nomadic lifestyle group comprising remote workers and business owners who stay in various places around the globe for extended durations. The demand for accommodation options has also surged due to this trend, among modern travelers who prefer staying in places that offer a homely environment suited to their flexible living and working arrangements. The progress in technology and the incorporation of features in long term stay accommodations play a pivotal role in attracting customers with amenities such as keyless entry options and tailored room configurations along with convenient online reservation platforms and IoT connected devices, for an enriched user experience.
The changing landscape of travel is also boosting the Extended Stay Hotel industry as more business travelers and companies are also favoring extended stay accommodations for their economical benefits and added convenience. These facilities provide a home atmosphere with fully equipped kitchens and laundry services that are also essential, for longer trips and help alleviate the strain associated with traveling.
02
Restraint: Fierce Industry Competition
Extended Stay Hotels are encountering an obstacle in the form of heightened competition from various sources within and outside the hotel sector The emergence of online platforms for renting homes has resulted in a wide array of alternative lodging choices, for travelers This trend impacts Extended Stay Hotels’ target demographic since these platforms frequently provide better pricing options local cultural experiences and the cozy ambiance of a home setting
03
Opportunity: Local Experiences and Health and Wellness Focus
Travelers are showing a growing interest in embracing culture and activities when they visit new places nowadays. To cater to this trend effectively and set themselves apart from the competition extended stay hotels should consider offering local experience bundles team up with local tour providers or even incorporate elements of the communitys culture and style into their hotel designs. These efforts could potentially draw in a segment of visitors who are looking for more, than just a place to stay during their travels.
The increasing focus on health and well being among travelers offers a chance for extended stay hotels to stand out. By adding fitness facilities and offering wellness activities and nutritious dining choices these hotels can position themselves as the go to option, for long term guests who prioritize their health and fitness goals.
04
Challenge: Polarizing Consumer Preferences
Consumers have a variety of preferences when it comes to lodging choices that range from accommodations to more budget friendly options. Catering to diverse preferences poses a challenge, for Extended Stay Hotels as they strive to uphold a cohesive brand image.
Supply Chain Landscape
1
Property Acquisition & Development
Real Estate Developers
2
Interior Design & Furnishing
IKEA GroupSteelcaseAshley Furniture
3
Hospitality Services
Sysco CorporationUS Foods Inc
1
Property Acquisition & Development
Real Estate Developers
2
Interior Design & Furnishing
IKEA GroupSteelcaseAshley Furniture
3
Hospitality Services
Sysco CorporationUS Foods Inc
Use Cases of Extended Stay Hotel in Rental Service & Business Travel Accommodation
Extended Stay Rental Service : Extended stay hotels provide furnished suites for guests staying for an extended period of time offering a blend of hotel luxuries and the comfort of home for longer stays—a feature that sets them apart and enhances customer satisfaction and loyalty levels in the hospitality industrys landscape. Major players in this sector encompass Extended Stay America and Residence Inn, by Marriott.
Business Travel Accommodation : This software caters to professionals and managers who frequently travel for business and need accommodations in key business areas for longer stays. The special benefit is the access to business amenities like Wi Fi access, discussion rooms and flexible booking choices for extended periods. Hyatt House and Homewood Suites by Hilton are among the players, in the market.
Transitional Living Solution : Extended stay accommodations offer an option for individuals undergoing relocation or involved in extensive projects that require temporary housing solutions. These establishments provide cost fully furnished living spaces with customizable lease durations to cater to diverse needs. By opting for these accommodations individuals can bypass the challenges associated with landlords, lengthy lease agreements and the expenses of furnishing a new apartment. Key players in this sector include Staybridge Suites and TownePlace Suites, by Marriott.
Recent Developments
Lately there has been an uptick in the Extended Stay Hotel sector as a result of evolving traveler preferences impacted by the COVID pandemic situation. The outbreak has shifted interest away from short term lodging options toward extended stay setups that offer amenities, like kitchenettes and extra living space for guests looking to create a cozy home like ambiance while on extended trips.
December 2024 : Marriott International unveiled its Residence Inn, in Phoenix, Arizona. This move bolsters the Extended Stay Hotel sector by offering upscale choices.
October 2024 : Hilton has introduced its brand called Home Suites, in London as a strategic move to enter the flourishing Extended Stay Hotel market in the UK.
June 2024 : Hyatt House struck an agreement to broaden its presence in Asia. This move includes introducing establishments, in Tokyo and Bangkok to enhance the Asian Extended Stay Hotel sectors development and competitiveness.
Impact of Industry Transitions on the Extended Stay Hotel Market
As a core segment of the Tourism & Entertainment industry,
the Extended Stay Hotel market develops in line with broader industry shifts.
Over recent years, transitions such as Shift Towards Customized Guest Experiences and Integrating Technology into Hospitality have redefined priorities
across the Tourism & Entertainment sector,
influencing how the Extended Stay Hotel market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Shift Towards Customized Guest Experiences
The market for Extended Stay Hotels is going through a change due to the rising demand, for customized guest experiences. Guests are now looking for personalized experiences that cater to their individual preferences and lifestyles rather than sticking to one standard approach. This has led Extended Stay Hotels to invest in technology and data analysis to better understand guest needs and provide tailored services and experiences. In the world of hospitality industry today custom designed spaces and tailored packages with unique features, like special amenities and personalized menus have become essential in drawing in and keeping guests happy.
02
Integrating Technology into Hospitality
The Extended Stay Hotel Market has seen a shift, with the incorporation of cutting edge technology.