Extended Stay Hotel Market Size, Share Global Analysis Report, 2025 - 2034

Industry Insights

[221+ Pages Report] According to Facts & Factors, the global extended stay hotel market size was worth around USD 60.94 billion in 2024 and is predicted to grow to around USD 148.75 billion by 2034, with a compound annual growth rate (CAGR) of roughly 11.80% between 2025 and 2034.

Market Overview

An extended stay hotel is a form of accommodation for guests who wish to stay for longer periods. These hotels provide more home-like facilities than regular hotels and more spacious lodging. They are booked mainly by people relocating, business travelers, or those who need temporary housing. The rates are comparatively lower than those of overnight accommodation hotels, with reductions for longer stays. The leading drivers of the extended stay hotel market are rising business travel and the work-from-home culture, growing demand for long-term travel, and cost efficiency. Several corporate companies and businesses are increasingly offering flexible work choices, resulting in more individuals traveling for work or working from home, irrespective of location. This trend fuels the demand for extended stays, as employees need accommodations for long periods.

Additionally, remote workers, business travelers, and individuals relocating to a new area often require lodging for extended periods. As companies are adopting flexible work arrangements and longer business tours, extended stay hotels satisfy the demand for long-term and cost-efficient solutions.

Moreover, extended stay hotels offer a more affordable option than customary stays or renting houses. The longer a worker stays, the more budget-friendly the stay becomes, thus attracting a broader audience.

However, despite these factors, the global market also witnesses restraining factors, including growing competition from alternative options like VRBO, Airbnb, and more. The growth of alternative lodging services, such as Airbnb, has intensified competition, as many travelers prefer renting apartments with similar amenities. These options are gaining traction and offer a better experience.

Nevertheless, high operational costs are another restraining factor in the global market. Extended stay hotels usually need more widespread maintenance, additional amenities, and larger rooms, which may increase costs. Managing these costs while maintaining competitive rates could be challenging for hotel management staff.

Yet, the market is projected to grow substantially over the coming period, owing to partnerships with relocation agencies and corporations and the rising adoption of sustainable practices. Extended-stay hotels may gain a consistent booking stream by forming strategic associations with corporations, government businesses, and relocation firms over the coming years. These associations will help them provide services to expatriates, business travelers, and relocating families.

Furthermore, with the growing concern for sustainability among businesses and customers, these hotels may appeal to eco-friendly travelers by adopting energy-efficient solutions, sustainable building practices, and water conservation techniques. Green certifications will help hotel brands to differentiate themselves in the competitive industry.

Key Insights:

• As per the analysis shared by our research analyst, the global extended stay hotel market is estimated to grow annually at a CAGR of around 11.80% over the forecast period (2025-2034)
• In terms of revenue, the global extended stay hotel market size was valued at around USD 60.94 billion in 2024 and is projected to reach USD 148.75 billion by 2034.
• The extended stay hotel market is projected to grow significantly owing to the rising demand from business professionals, individuals on long-term projects, and a growing number of relocating families.
• Based on type, the mid-range segment is expected to lead the market, while the economy segment is expected to register considerable growth.
• Based on tourist type, the domestic segment is the dominating segment among others, while the international segment is projected to witness sizeable revenue over the forecast period.
• Based on booking mode, the direct booking segment is expected to lead the market as compared to the Online Travel Agencies (OTAs) segment.
• Based on region, North America is projected to dominate the global market during the estimated period, followed by the Asia Pacific.

Growth Drivers

• How will the rising preference for home-like comforts spur the extended stay hotel market growth?

Extended stay hotels offer optimal comfort than the customary hotels. Features like separate living areas, kitchenettes, on-site laundry facilities, and full-sized refrigerators cater to customers staying for weeks or months. This is mainly attractive for individuals relocating for work or leisure travel, looking for home-like, comfortable options.

The latest survey presented that nearly 65% of travelers choose accommodations with cooking facilities and kitchenettes for extended stays, as this majorly decreases dining-out expenses. The extended stay hotel market is increasing its spending and investing in this trend by integrating comfortable amenities into its rooms.

Staybridge Suites, a leading player in the market, reported a 30% increase in long-term bookings over the past year, with travelers particularly praising the flexibility of cooking and having separate areas for work.

• The rise in freelance work and the gig economy notably fuel the market growth

The gig company, including contractors, freelancers, and other non-conventional employees, is greatly expanding, and most of these individuals need temporary and flexible housing solutions. Extended stay hotels satisfy this demographic by offering facilities that help both leisure and work, permitting individuals to maintain a more balanced lifestyle.

Extended stay chains, such as Element, have invested in this trend by providing work-friendly areas like meeting rooms, business centers, and free Wi-Fi, especially for gig workers and freelancers. They experienced a 25% rise in stays by freelancers in the previous couple of years.

Restraints

• Demand fluctuations and economic sensitivity adversely affect the progress of the extended stay hotel market

The demand for extended stay lodging is associated with economic conditions. Economic uncertainties and downturns may result in lower corporate tour budgets and affect the overall demand. In addition, extended stay hotels may witness seasonal variations, especially in locations where some industries are highly active and attractive during certain times of the year.

COVID-19 highlighted the economic sensitivity of the hospitality sector. Since the extended stay hotels presented resilience, their occupancy rates were negatively impacted by economic uncertainties and global travel constraints. With the progress and recovery of economies post-pandemic, demand patterns have experienced substantial growth, enabling them to stay responsive and adaptive to changing economic pointers.

Opportunities

• Does the integration of IoT and smart technology positively impact the extended stay hotel market growth?

Integrating smart technologies and IoT devices simplifies hotel operations and improves guest experiences. Characteristics like automated check-ins and check-outs, voice assistants, and connected appliances and devices offer efficiency and better convenience, thus catering to the expectations of international and modern guests.

Hotels also implement digital solutions to enhance operational efficiency and improve guest experience. This includes incorporating smart room controls, personalized data analytics, and virtual concierge services. These modernizations enable hoteliers to refine their facilities and amenities, thereby maintaining a competitive edge.

Challenges

• Will the staffing issues and labor shortages hamper the progress of the extended stay hotel market?

The hospitality sector is experiencing major staffing issues that ultimately affect the operation and functioning of extended stay hotels. Hiring specialized staff in maintenance, housekeeping, and front-desk services is intricate and complex. This scarcity may result in long response times, reduced quality of services, and low guest satisfaction, thus adversely affecting the progress of the extended stay hotel industry.

In response to these issues, leading brands like Marriott have offered wage increases and proper personnel training and development programs to appeal to and retain staff members. They also aim to leverage automation and artificial intelligence to decrease reliance on human labor in non-guest-facing roles.

Report Scope

Segmentation Analysis

The global extended stay hotel market is segmented based on type, tourist type, booking mode, and region.

Based on type, the global extended stay hotel industry is divided into economy, mid-range, and luxury/upscale. The mid-range segment registered a considerable market share owing to its perfect balance of comfort and affordability. It attracts a larger audience, comprising business professionals, long-term guests, and relocators who look for value for money without negotiating on essential services. Mid-range hotels provide competitive costs, which appeal to extended stays, and they also cater precisely to the rising demand for leisure travel and business.

Based on tourist type, the global extended stay hotel industry is segmented into domestic and international. The domestic segment registered a remarkable market share in 2024 and will also lead in the future, due to the high volume of travel in the traveler's own country. This increases its accessibility and cost-effectiveness. Domestic travelers avoid the complexities and extra expenses of international tours, like flights and visas. The segment is majorly fueled by business tours, temporary work, relocations, and a rising number of remote workers needing flexible accommodations. Extended stay hotels are an ideal choice due to fewer barriers and better convenience.

Based on booking mode, the global market is segmented into direct booking, Online Travel Agencies (OTAs), and marketplace booking. The direct booking category captured a significant market share, as it enables hotels to save on commission fees paid to 3rd parties, thus raising profitability. It also builds better relations with travelers, providing personalized services and enhanced consumer loyalty programs. It offers better control of costs, guest data, and availability, enabling more flexibility in promotions and discounts.

In addition, travelers enjoy a more customized and seamless booking experience, often accompanied by high-class benefits, which motivates them to book directly instead of through third-party channels.

Regional Analysis

• What factors will help North America to witness significant growth in the extended stay hotel over the forecast period?

North America has maintained a dominant market share in recent years and is expected to continue leading the way over the coming years. This growth is backed by high demand from business and corporate travelers, industry development and leading hotel chains, and a rise in domestic travel. North America, mainly the U.S., holds many business travelers who need longer stays for their official assignments. The region's strong presence of MNCs and economy aids in a stable stream of extended hotel stays.

The U.S. also has a developed extended-stay hotel market with a broader range of options, such as economy, luxury, and more. Leading brands like Residence Inn by Marriott, Homewood Suites, and Extended Stay America constantly expand to meet consumer needs and preferences. Moreover, in the past years, the region has witnessed elevated domestic tourism. Individuals seeking work, remote work, and assignments increasingly choose extended stay hotels.

Asia Pacific holds a second-leading share of the extended stay hotel market, backed by speedy urbanization and increasing spending power of consumers, rising corporate and business-associated travel, and rising prominence of long-term stays. Asia Pacific is witnessing speedy urbanization, mainly in nations like India, China, South Korea, and Japan. As more individuals move for work, the demand for temporary stays increases considerably.

In addition, as economies in the region continue to progress, corporate and business travel have become key contributors to the demand for extended-stay hotels. Additionally, extended stay hotels have become a cost-effective alternative to traditional hotels, particularly for tourists, business travelers, and expatriates. With significant prices of long-term leases and apartments, extended stay hotels offer wide-ranging services and facilities that attract such guests.

Competitive Analysis

The global extended stay hotel market is led by players like:

• Extended Stay America
• Marriott Residence Inn
• Hilton Homewood Suites
• Accor Suite Novotel
• Candlewood Suites by IHG
• Element by Westin (Marriott)
• La Quinta Inns & Suites (Wyndham)
• TownePlace Suites by Marriott
• Staybridge Suites by IHG
• Ramada Encore by Wyndham
• Red Roof Inn – The Red Collection
• Fairfield Inn & Suites by Marriott
• Hyatt House
• BridgeStreet Global Hospitality
• OYO Townhouse

Key Market Trends

• Focus on hygiene and health:

Owing to current health issues, hygiene has grown to be a top priority for extended hotel stays. Improving cleaning regulations, contactless check-in and check-out, and sanitized lodgings are now the average features for ensuring guest comfort and safety.

• Flexible booking choices:

Today, several hotels offer more flexible booking choices with customized rates and discounts for longer stays. This trend caters to tourists and business travelers who need more flexibility in cancellations and can book prolonged stays.

The global extended stay hotel market is segmented as follows:

By Type Segment Analysis

• Economy
• Mid-Range
• Luxury/Upscale

By Tourist Type Segment Analysis

• Domestic
• International

By Booking Mode Segment Analysis

• Direct Booking
• Online Travel Agencies (OTAs)
• Marketplace Booking

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America