Extended Stay Hotel

Global Extended Stay Hotel Market to Reach US$91.8 Billion by 2030

The global market for Extended Stay Hotel estimated at US$56.5 Billion in the year 2024, is expected to reach US$91.8 Billion by 2030, growing at a CAGR of 8.4% over the analysis period 2024-2030. Economy Extended Stay Hotel, one of the segments analyzed in the report, is expected to record a 7.9% CAGR and reach US$50.3 Billion by the end of the analysis period. Growth in the Mid-Range Economy Extended Stay Hotel segment is estimated at 9.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$15.4 Billion While China is Forecast to Grow at 13.0% CAGR

The Extended Stay Hotel market in the U.S. is estimated at US$15.4 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$19.8 Billion by the year 2030 trailing a CAGR of 13.0% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 4.3% and 8.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.6% CAGR.

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.

Select Competitors (Total 34 Featured) -

• Accor S.A.
• Blueground Holdings Limited
• Choice Hotels International
• Domio Inc.
• Extended Stay America
• G6 Hospitality LLC (Motel 6, Studio 6)
• Ginosi Corporation
• Hilton Worldwide
• Hyatt Hotels Corporation
• InterContinental Hotels Group (IHG)
• InTown Suites
• Kasa Living Inc.
• Larkspur Landing
• Marriott International
• National Corporate Housing Inc.
• OYO Rooms
• Radisson Hotel Group
• Sonder Holdings Inc.
• Sonesta International Hotels Corporation
• The Ascott Limited

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

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JAPAN
INDIA
176 OTHER COUNTRIES.

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