Extended Stay Hotel Global Market Report 2024

The extended stay hotel market size has grown strongly in recent years. It will grow from $19.57 billion in 2023 to $20.88 billion in 2024 at a compound annual growth rate (CAGR) of 6.7%. The historical period's growth can be ascribed to factors such as the demand for business travel, economic conditions, globalization, and the changing dynamics of travel and workforce mobility.

The extended stay hotel market size is expected to see strong growth in the next few years. It will grow to $27.17 billion in 2028 at a compound annual growth rate (CAGR) of 6.8%. The anticipated growth in the forecast period can be linked to the prevalence of remote work culture, the rise of medical tourism, a heightened focus on sustainability and wellness, a shift in housing preferences, and the demand for accommodations suitable for family travel. Key trends expected in the forecast period encompass the adoption of flexible and hybrid spaces, the integration of technology for personalized experiences, the provision of contactless services, the enhancement of amenities, and the implementation of health and safety standards.

The anticipated growth in the extended-stay hotel market is expected to be propelled by the expanding tourism sector. Tourism, involving individuals traveling for personal, business, or professional reasons to locations beyond their usual environment, is a cultural, social, and economic phenomenon. Extended-stay hotels cater to travelers, business clients, and others by offering a home-such as environment with various amenities and services, including cleaning and cooking facilities, facilitating productivity in a new city or place. For instance, in June 2022, the U.S. Department of Commerce reported an increase in international visitors to the United States, reaching 22.1 million in 2021, up from 19.2 million in 2020. Thus, the growing tourism sector is a driving force behind the extended-stay hotel market's growth.

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 June 2021, Blackstone Real Estate Partners, a US-based real estate investing company, and Starwood Capital Group, a US-based investment company, completed the acquisition of Extended Stay America Inc. (ESA) and ESH Hospitality Inc. (ESH) for $6 billion. This strategic move allows Blackstone and Starwood Capital Group to position themselves favorably in the extended-stay market, seizing growth opportunities. Extended Stay America Inc. is a US-based hotel company that provides extended-stay hotel services.

Major companies operating in the extended stay hotel market report are 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 2023. 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.

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 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 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.