Extended Stay Hotel Market Size, Share, Trends, Industry Analysis, and Forecast (2025 – 2031)

Extended Stay Hotel Market Size

The global extended stay hotelmarket size was valued at $65.01 billion in 2025 and is projected to reach $118.34 billion by 2031, growing at a CAGR of 10.5% during the forecast period.

Extended Stay Hotel Market Overview

Extended stay hotels are specialized accommodations designed for travelers who require lodging for extended periods, typically a week or more. These hotels combine the comfort of home with the conveniences of hotel services, offering amenities such as fully equipped kitchens, laundry facilities, and spacious living areas. This unique blend makes them particularly attractive to business travelers, families relocating, and individuals on long-term assignments.

Companies can benefit significantly from this market by capitalizing on the growing demand for flexible and cost-effective lodging solutions. This growth is driven by factors such as an increase in remote work culture and the rise in medical tourism, creating a need for accommodations that provide both comfort and practicality. Major players in this space, like WoodSpring Suites and Extended Stay America, are enhancing their offerings with loyalty programs and tailored services that cater to the needs of long-term guests. Additionally, government initiatives promoting tourism and business travel further support this segment's expansion. As the market evolves, companies that adapt their strategies to meet the needs of extended stay guests are likely to see substantial benefits in terms of occupancy rates and customer loyalty.

Extended Stay Hotel Market Dynamics

The extended stay hotelmarket is expected to witness significant growth in the future due to the expansion in the tourism and travel industry, increase in business travel and corporate relocations, and rising remote work culture and hybrid work models. However, the strict regulations regarding zoning and licensing, high competition leading to price wars and reduced profit margins, and economic downturns affecting business travel demand are restraining the growth of the market.

Furthermore, growth in emerging markets with increasing travel demand, development of unique services to differentiate from competitors, and rising trend of 'bleisure' trips combining business and leisure travel are the key trends propelling the extended stay hotelmarket.

Expansion in the Tourism and Travel Industry is Driving the Extended Stay Hotel Market

The expansion in the tourism and travel industry is significantly impacting the extended stay hotelmarket, as evidenced by various data points and initiatives. This growth is driven by an increase in both leisure and business travel, particularly as global economies recovers from the pandemic and travel restrictions ease.

• For instance, Thailand's Tourism Ministry reported a notable surge in international tourist arrivals, reaching approximately 5.98 million in early 2024, which marks a 48% increase from the previous year, with the government aiming for a record 40 million foreign tourists by year-end.

Major hotel chains are capitalizing on this trend;

• Hilton launched Project H3 in 2023, focusing on apartment-style accommodations for longer stays near strategic locations such as military bases and hospitals.
• Similarly, Hyatt announced plans for 100 new Hyatt Studios aimed at extended-stay travelers in the Americas.

These initiatives reflect a broader trend where extended stay hotels are increasingly recognized for their ability to provide comfort and flexibility to travelers seeking longer-term accommodations. The growing preference for such lodging options is also supported by demographic shifts and evolving consumer behaviors that favor residential-like experiences over traditional hotel stays. Collectively, these developments underscore how the expansion of tourism and travel directly fuels demand for extended stay hotels, positioning them as a vital segment within the hospitality industry.

By Type, the Luxury and Upscale Segment is projected to be the Largest Segment in the Extended Stay Hotel Market

Luxury and Upscale is the largest segment in the extended stay hotelmarket, driven by evolving consumer preferences and demographic shifts. The luxury/upscale segment alone accounted for 75.92% of this market share in 2023, indicating its dominance and potential for further expansion.

Major hotel chains are actively responding to this trend;

• For instance, Marriott International launched Project MidX Studios in June 2023 to cater to the demand for modern, upscale accommodations in the U.S. and Canada.
• Similarly, Accor Group is expanding its portfolio with established luxury brands like Raffles and Sofitel, particularly in high-demand markets such as Riyadh, London, and Singapore.

Additionally, the acquisition of Extended Stay America Inc. by Blackstone Real Estate Partners and Starwood Capital Group for USD 6 billion in June 2021 highlights the strategic importance of this segment within the hospitality industry. Government initiatives also play a role, as evidenced by the increase in international visitors to the U.S., which rose from 19.2 million in 2020 to 22.1 million in 2021, further driving demand for extended stay options. With the rise of remote work creating a need for flexible living arrangements, the luxury/upscale segment is well-positioned to shape the future landscape of hospitality as affluent travelers increasingly seek high-quality accommodations for longer durations.

By Geography, North America Holds the Largest Share in the Market Revenue

North America holds the largest share of the extended stay hotelmarket, driven by a combination of increased business travel, the rise of remote work, and changing consumer preferences for flexible accommodation options. This growth is fueled by the evolving nature of work, where more companies are adopting flexible policies that necessitate temporary housing for employees on long-term assignments or relocations. Government initiatives supporting business travel and tourism have further bolstered this demand; for example, the U.S. Department of Commerce has reported a resurgence in international travel post-pandemic, which enhances the need for extended stay options that provide comfort and convenience. As a result, the extended stay hotel segment is becoming increasingly popular among both business and leisure travelers seeking spacious, cost-effective lodging solutions that offer amenities such as fully equipped kitchens and dedicated workspaces, making it an attractive choice in today's dynamic travel landscape.

Key Target Audience:

• Corporate Professionals
• Long-term Travelers
• Digital Nomads
• Families
• Government Employees
• Students and Interns

List of the Key Players Profiled in the Report Includes:

• Hilton Worldwide
• Hyatt Hotel
• Choice Hotels International
• InterContinental Hotels Group (IHG)
• Marriott International
• Wyndham Hotel Group
• Holiday Inn.
• Extended Stay America
• Candlewood Suits
• Oyo rooms
• Orange Hotel
• 7 Days Inn
• Ibis

Recent Developments:

• In January 2025, Marriott International announced plans to expand its extended stay portfolio through multi-unit conversions and adaptive reuse projects, focusing on affordable midscale brands to capture growing demand for longer-term stays. Marriott also launched an outdoor-focused soft brand collection to appeal to travelers seeking unique experiences beyond traditional hotel stays.
• In April 2024, Wyndham expanded into the upscale extended stay segment through a partnership with WaterWalk, introducing WaterWalk Extended Stay by Wyndham, adding 11 hotels and over 1,500 rooms to their portfolio.
• In early 2025, Wyndham Hotels & Resorts emphasized extended stay as a key growth segment, with Chief Development Officer Amit Sripathi noting that 80% of investors plan to maintain or increase capital investment in hotels, supporting new construction projects and conversions in this category.
• In October 2023, Hilton announced its new extended stay brand, LivSmart Studios, designed for long-stay guests, which has received significant interest from owners and developers. Construction for the first property in Kokomo, Indiana, broke ground and is expected to open in summer 2024.

Market Segmentation:

The research report includes in-depth coverage of the industry analysis with size, share, and forecast for the below segments:

Market by, Type:

• Economy
• Mid-Range
• Luxury/Upscale

Market by, Tourist Type:

• Domestic
• International

Market by, Booking Channel:

• Online
• On-Phone
• In-Person

Market by, Application:

• Travelers
• Business Customers
• Other Applications

Market by, Stay Duration:

• Long Term
• Monthly
• Weekly
• Daily

Market by, Consumer Orientation:

• Men
• Women
• Children

Market by, Geography:

The extended stay hotelmarket report also analyzes the major geographic regions and countries of the market. The regions and countries covered in the study include:

• North America (The United States, Canada, Mexico), Market Estimates, Forecast & Opportunity Analysis
• Europe (Germany, France, UK, Italy, Spain, Rest of Europe), Market Estimates, Forecast & Opportunity Analysis
• Asia Pacific (China, Japan, India, South Korea, Australia, New Zealand, Rest of Asia Pacific), Market Estimates, Forecast & Opportunity Analysis
• South America (Brazil, Argentina, Chile, Rest of South America), Market Estimates, Forecast & Opportunity Analysis
• Middle East & Africa (UAE, Saudi Arabia, Qatar, Iran, South Africa, Rest of Middle East & Africa), Market Estimates, Forecast & Opportunity Analysis

The report offers insights into the following aspects:

• Analysis of major market trends, factors driving, restraining, threatening, and providing opportunities for the market.
• Analysis of the market structure by identifying various segments and sub-segments of the market.
• Understand the revenue forecast of the market for North America, Europe, Asia-Pacific, South America, and Middle East & Africa.
• Analysis of opportunities by identification of high-growth segments/revenue pockets in the market.
• Understand major player profiles in the market and analyze their business strategies.
• Understand competitive developments such as joint ventures, alliances, mergers and acquisitions, and new product launches in the market.

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