Extended Stay Hotel Sector Market- Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032

Market Overview

The Extended Stay Hotel Sector is poised for substantial growth, with the market size projected to expand from USD 54,525 million in 2024 to USD 137,922.05 million by 2032, reflecting a compound annual growth rate (CAGR) of 12.3%.

This sector is benefiting from evolving travel patterns, an uptick in demand from business travelers, and the growing preference for long-term stays among leisure guests. Key growth drivers include the increasing demand for cost-efficient accommodations that offer home-like amenities, catering to both corporate clients and individuals undergoing relocations. Additionally, technological innovations such as streamlined booking systems and enhanced customer experiences are transforming the industry, attracting a wider range of customers. Trends like the fusion of work and leisure travel (bleisure) and the rise of flexible living options are further reshaping consumer behavior. Sustainability initiatives and the adoption of eco-friendly practices are also impacting market dynamics, appealing to environmentally conscious travelers. These factors are fueling demand, positioning the sector for substantial expansion and creating lucrative opportunities for stakeholders to leverage emerging trends and shifting consumer expectations.

Market Drivers

Corporate Travel and Relocation Demand

Corporate travel and employee relocations are central to the extended stay hotel sector's growth. Many businesses prefer long-term lodging for employees on extended assignments, training programs, or relocations. According to a report by the Global Business Travel Association (GBTA), the cost-effectiveness of extended stay accommodations over frequent short-term stays has made them increasingly attractive to corporate clients. Furthermore, the globalization of businesses and expansion into emerging markets are enhancing this trend.

Market Challenges

Intense Competition and Market Saturation

The extended stay hotel market faces heightened competition, both from within the sector and from alternative accommodation options, such as serviced apartments, vacation rentals, and hybrid hospitality models. As the demand for long-term lodging grows, new market entrants are intensifying competition, placing pressure on pricing strategies. Established players must innovate and differentiate their offerings to retain market share, which is challenging in an environment of evolving customer expectations. Additionally, market saturation in key urban areas complicates expansion efforts, making it crucial for operators to identify opportunities in less crowded regions.

Market Segments

By Room Range Type:

Economic Range

Mid-Range

Luxury Range

By End User:

Travelers

Corporate Professionals

Management Trainees

Students

By Stay Duration:

Long-Term

Monthly

Weekly

Daily

By Booking Channel:

Online Booking

In-Person Booking

Phone Booking

By Tourist Type:

Domestic

International

By Consumer Orientation:

Men

Women

Children

By Age Group:

15-25 Years

26-35 Years

36-45 Years

46-55 Years

66-75 Years

By Geography:

North America:

U.S.

Canada

Mexico

Europe:

Germany

France

U.K.

Italy

Spain

Rest of Europe

Asia Pacific:

China

Japan

India

South Korea

Southeast Asia

Rest of Asia Pacific

Latin America:

Brazil

Argentina

Rest of Latin America

Middle East & Africa:

GCC Countries

South Africa

Rest of the Middle East and Africa

Key Players

InterContinental Hotels Group (IHG)

Extended Stay America

Hilton Worldwide

Choice Hotels International

Oyo Rooms

Hyatt Hotels

Wyndham Hotel Group

Candlewood Suites

Holiday Inn

7 Days Inn