Global Extended Stay Hotel Market Outlook
Revenue, 2024
Forecast, 2034
CAGR, 2024 - 2034
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 $15.7 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 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 Outlook
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.
Europe Outlook
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
Driver: Rise in Digital Nomadism, and Smart Technology Integration
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.
Restraint: Fierce Industry Competition
Opportunity: Local Experiences and Health and Wellness Focus
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.
Challenge: Polarizing Consumer Preferences
Supply Chain Landscape
Real Estate Developers
IKEA Group
Steelcase
Ashley Furniture
Sysco Corporation
US Foods Inc
Real Estate Developers
IKEA Group
Steelcase
Ashley Furniture
Sysco Corporation
US Foods Inc
Applications of Extended Stay Hotel in Rental Service, Business Travel Accommodation & Transitional Living Solution
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.
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.
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
Marriott International unveiled its Residence Inn, in Phoenix, Arizona. This move bolsters the Extended Stay Hotel sector by offering upscale choices.
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.
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.