Extended Stay Hotel - Global Strategic Business Report

The global market for Extended Stay Hotel was estimated at US$56.5 Billion in 2024 and is projected to reach US$91.8 Billion by 2030, growing at a CAGR of 8.4% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Extended Stay Hotel market.

Global Extended Stay Hotel Market - Key Trends & Drivers Summarized

Why Are Extended Stay Hotels Becoming a Strategic Lodging Segment Globally?

Extended stay hotels are evolving from a niche segment into a mainstream and resilient category within the global hospitality industry. These properties, which offer self-contained accommodations with kitchenettes and flexible booking durations, have become a preferred lodging choice for business travelers, relocating families, healthcare workers, construction crews, and long-stay tourists. The segment's appeal lies in its cost-effectiveness, residential amenities, and home-like environment, distinguishing it from traditional hotels. Unlike transient hotels that rely heavily on occupancy churn, extended stay models offer longer average lengths of stay, driving higher operational efficiency and revenue consistency.

The demand for extended stay properties gained exceptional traction during the COVID-19 pandemic and has since retained its upward trajectory. Amid travel uncertainty, quarantine mandates, and remote work transitions, many travelers turned to extended stay hotels for short-term housing. This trend has now matured into broader market acceptance, particularly among digital nomads, project-based professionals, and individuals seeking temporary accommodations during life transitions such as medical treatments, home renovations, or corporate relocations. These diverse demand drivers continue to buffer the segment against the cyclical volatility typical of the hospitality sector.

How Is the Business Model of Extended Stay Hotels Evolving With Changing Travel Trends?

Operators in the extended stay space are capitalizing on operational efficiencies by standardizing layouts, minimizing daily housekeeping, and offering limited front-desk services, resulting in higher profit margins per room. The business model benefits from lean staffing, reduced guest turnover, and lower guest acquisition costs due to longer stays. Additionally, hotel brands are integrating dynamic pricing, tiered amenities, and extended stay loyalty programs to enhance retention and capture repeat business from both corporate accounts and independent travelers. Some brands are also adopting subscription models and corporate leasing to monetize unsold inventory and create predictable cash flows.

Another notable trend is the hybridization of extended stay hotels, combining the convenience of traditional lodging with the flexibility of vacation rentals. Modern properties are increasingly designed to appeal to lifestyle-conscious travelers, offering co-living-inspired communal spaces, coworking lounges, and curated local experiences. In response to rising demand for contactless services, extended stay hotels are leveraging self-check-in kiosks, mobile apps, smart locks, and digital concierge tools to streamline the guest journey. These enhancements not only improve guest satisfaction but also position the segment to align with broader trends in tech-enabled, low-touch hospitality environments.

Where Is New Demand for Extended Stay Hotels Emerging Globally?

Extended stay hotel development is expanding beyond urban business districts into suburban, tertiary, and secondary cities, driven by shifting travel behavior and real estate economics. As more professionals opt for hybrid or fully remote work arrangements, the need for flexible accommodations closer to suburban offices, medical campuses, logistics hubs, and university towns is growing. This has prompted hotel developers and REITs to invest in adaptive reuse projects, converting office buildings and underperforming hotels into extended stay formats. Markets such as the U.S., Canada, Germany, the UK, Australia, and parts of Southeast Asia are witnessing significant development activity in this space.

The model also holds strong appeal for institutional investors, given its attractive cash-on-cash returns, lower break-even occupancy rates, and strong performance during economic downturns. Extended stay brands under global chains like Marriott (Element, Residence Inn), Hilton (Home2 Suites, Homewood Suites), and IHG (Staybridge Suites) continue to expand their global footprints through both franchise and management agreements. In parallel, boutique and independent operators are entering the market with differentiated aesthetics, wellness amenities, and localized guest experiences. This diversification is creating healthy competition and innovation within the segment.

What Is Driving the Continued Growth of the Global Extended Stay Hotel Market?

The growth in the global extended stay hotel market is driven by several factors, including rising demand from long-stay business travelers, project-based workers, and remote professionals; increased adoption of asset-light operational models with reduced labor and maintenance costs; and the shift toward flexible, hybrid accommodation formats combining hospitality and residential elements. Additionally, technology adoption - such as smart room access, mobile concierge apps, and real-time booking platforms - is enhancing operational efficiency and guest satisfaction. Real estate trends supporting adaptive reuse and extended-stay conversion projects are also accelerating supply in key regions.

The increasing role of extended stay hotels in relocation, medical tourism, disaster recovery, and government housing contracts is broadening the customer base across both public and private sectors. Growth in global mobility, visa-free work programs, and long-term tourist visas further supports extended lodging demand. Moreover, favorable performance metrics - including higher average length of stay, lower vacancy rates, and more stable RevPAR - make extended stay hotels particularly attractive to investors seeking recession-resilient assets. As consumer expectations evolve, extended stay hotels are well-positioned to thrive at the intersection of hospitality, housing, and flexible living.

Scope of Study:

The report analyzes the Extended Stay Hotel market in terms of units by the following Segments, and Geographic Regions/Countries:

• Segments: Type (Economy Extended Stay Hotel, Mid-Range Economy Extended Stay Hotel, Luxury & Upscale Economy Extended Stay Hotel); Tourist (Domestic Tourist, International Tourist); Booking Mode (Direct Booking, Online Travel Agencies, Marketplace Booking)
• Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Economy Extended Stay Hotel segment, which is expected to reach US$50.3 Billion by 2030 with a CAGR of a 7.9%. The Mid-Range Economy Extended Stay Hotel segment is also set to grow at 9.7% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $15.4 Billion in 2024, and China, forecasted to grow at an impressive 13.0% CAGR to reach $19.8 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Extended Stay Hotel Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Extended Stay Hotel Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Extended Stay Hotel Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as ACCOR SA, Ascott Limited, Choice Hotels International, Inc., Extended Stay America, Frasers Hospitality and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 34 companies featured in this Extended Stay Hotel market report include:

• ACCOR SA
• Ascott Limited
• Choice Hotels International, Inc.
• Extended Stay America
• Frasers Hospitality
• Hilton Worldwide Holdings Inc.
• Hyatt Corporation
• IHG Hotels & Resorts
• InTown Suites
• Louvre Hotels Group

This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:

• Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
• Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
• Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
• Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
• Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
• Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
• Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.