Extended Stay Hotels Market Size, Share, Growth, and Industry Analysis, By Types (Economy, Mid-Range, Luxury/Upscale) , Applications (Business, Leisure) and Regional Insights and Forecast to 2033

Extended Stay Hotels Market Size

The global extended stay hotels market size was valued at USD 25.06 billion in 2024 and is projected to reach USD 26.34 billion in 2025, eventually rising to USD 39.22 billion by 2033, registering a CAGR of 5.1% during the forecast period 2025 to 2033.

The US extended stay hotels market accounted for a significant portion of the global share in 2024, with over 2,500 active properties and increasing demand from both business and leisure travelers. High occupancy rates were recorded in key states such as Texas, Florida, and California, supported by corporate travel and relocation trends.

Key Findings

• Market Size-Valued at 26.34bn in 2025, expected to reach 39.22bn by 2033, growing at a CAGR 5.1%.
• Growth Drivers-Rising demand for remote-work stays (60 %), corporate relocations (55 %) driving extended bookings.
• Trends-Contactless check-in (45 %), eco-certified room growth (35 %), modular suite adoption (28 %).
• Key Players-Marriott International, Extended Stay America, Cofresco, Staybridge Suites, Home2 Suites
• Regional Insights-North America 52 %, Europe 18 %, Asia‑Pacific 15 %, Middle East 8 %, Africa 7 % share.
• Challenges-Rising energy and utility costs (18 %), maintenance labour (22 %), regulatory compliance (40 %).
• Industry Impact-Smart-room rollout 40 %, green certifications 30 %, prefab modular builds 20 %, IoT integration 22 %.
• Recent Developments-Induction kitchen expansions 45 %, modular suite launches 20 %, contactless check-in 50 %, fitness kits 27 %, grocery partnerships 40 %.

The Extended Stay Hotels market offers long-term lodging solutions tailored to business travelers, relocating families, and leisure guests seeking home-like amenities. Properties typically feature fully equipped kitchens, in-unit laundry, and dedicated workspaces—allowing guests to stay weeks or months. Unlike traditional hotels, this sector prioritizes residential comfort and cost-effective rates for extended durations. Emerging consumer expectations and a shift toward remote work have accelerated demand. The market also benefits from corporate partnerships and government contracts for relocation and training purposes, making Extended Stay Hotels a strategic lodging option in global travel and housing landscapes.

Extended Stay Hotels Market Trends

The Extended Stay Hotels market is currently witnessing several impactful trends. A surge in remote and hybrid work models has led to longer stays—more than 60 % of guests reportedly extend visits beyond 14 days. Demand for pet‑friendly and eco‑certified properties has grown by approximately 35 %, as travelers seek comfort and sustainability. Many chains are introducing flexible booking options; nearly 50 % now offer weekly or bi-weekly rate guarantees. Contactless check-in and digital concierge services have seen 45 % adoption across top brands. In response to health concerns, about 40 % of properties have upgraded sanitation protocols and introduced air filtration systems. Demographically, millennial and Gen Z travelers now represent over 30 % of overnight stays, looking for experience-driven and budget-conscious lodging. Regional diversification is also notable: urban markets in emerging economies report occupancy growth of around 20 %, driven by infrastructure expansion and international investment. Overall, these trends indicate that Extended Stay Hotels are evolving—becoming more tech-enabled, sustainability-focused, and tailored to longer-term, diverse traveler needs.

Extended Stay Hotels Market Dynamics

The Extended Stay Hotels space is shaped by multiple dynamics. Business travel and corporate relocation drive steady demand—corporate accounts account for roughly 55 % of bookings. Seasonal leisure travel also contributes; winter sports and holiday destinations see volume boosts of 25 %. Supply dynamics show new entrants converting apartments or condos into extended-stay properties, increasing room supply by over 15 %. Hotel groups respond by enhancing loyalty programs—two-thirds now offer perks like kitchenware credits and discounted laundry. Competitive pricing between traditional hotels and extended-stay units fosters market refinement. Regulatory compliance—covering fire safety and long‑term tenancy laws—impacts operating costs and design standards. To maintain occupancy, many operators emphasize community spaces, co‑working zones, and wellness facilities. In summary, a combination of demand diversification, supply expansion, policy adaptation, and guest experience upgrades drives the Extended Stay Hotels market forward.

OPPORTUNITY

Expansion of non-traditional segments and tech-driven guest services

Expansion of non-traditional segments and tech-driven guest services The rise of digital nomadism has opened new avenues—co-living extensions and shared kitchens increased demand by 28 % in 2024. Nearly 50 % of new properties now integrate co‑working lounges, targeting freelancers and remote professionals. Smart-room technologies, such as app-based energy controls and smart locks, have seen adoption rates of 33 %. Sustainability-driven travelers boost appeal of eco-certified Extended Stay Hotels, accounting for 26 % of new developments. Some franchisors are piloting modular units—prefab construction cuts setup time by 20 %. This innovation could unlock underutilized suburban areas with hospitality-grade efficiency, representing a high-growth opportunity in the evolving Extended Stay Hotels landscape./p>

DRIVERS

Growing remote and corporate relocation demand

With over 60 % of hotels reporting longer average guest stays, the trend toward remote working has driven occupancy in Extended Stay Hotels. Educational and healthcare staffing agencies contributed a rise of 22 % in corporate bookings. Additionally, 30 % of extended‑stay guests now originate from training assignments or government-related relocations. Operators responding by enhancing kitchen amenities report 40 % higher guest satisfaction. Such comfort-driven amenities are fueling growth, while partnerships with 45 % of relocation service providers expand corporate channels. Overall, the Extended Stay Hotels market is gaining traction as travelers prioritize long-stay comfort combined with residential convenience.

Market Restraints

RESTRAINTS: Rising operational and conversion costs challenge profitability in extended-stay properties Conversion of apartments or condos into Extended Stay Hotels properties can inflate renovation budgets by 25 %. Utility and energy expenses for individually metered rooms rose by 18 % in certain regions. Maintenance complexity also increases: across 35 % of operators, upkeep of in-unit kitchen and laundry equipment contributed to higher workforce demands. In some countries, stricter lease and licensing laws hinder project timelines—approval delays average 6 months and drive additional overhead. Admission barriers are also notable: roughly 20 % of developers cited zoning restrictions that limit hybrid residential/hotel models. These pressures suppress margin expansion and slow market entry in high-potential areas.

Market Challenges

CHALLENGE: Rising costs and regulatory complexity burdens extended-stay hotel operations Energy expenditures per room are up 18 %, straining budgets. Regulatory compliance concerning long-term occupancy, safety codes, and tipping laws now impacts 40 % of properties. Labour costs for housekeeping and technical maintenance rose 22 % in 2024. Adoption of health and safety standards increased initial investment demands—30 % of operators reported budget overruns. Additionally, growing competition from alternative lodging like furnished rentals is contributing to a 15 % dip in ADR (average daily rate) in some markets. Meanwhile, financing new developments tightened: 25 % of projects faced loan delays due to ambiguous classification under hotel/residential regulations. These challenges put pressure on profitability and expansion timelines.

Segmentation Analysis

The Extended Stay Hotels market is segmented by type—such as economy, mid-scale, upscale, and premium—and by application—serving business travel, relocation, leisure, and disaster relief. Economy extended-stay brands focus on value-driven amenities and proximity to transit hubs; mid-scale operators blend comfort with modest tech investments. Upscale and premium properties incorporate enhanced services like on-site fitness centers and curated community experiences. On the application side, business travel and corporate partnerships lead adoption; relocation services and long-term healthcare stay needs contribute roughly 25 % of room nights. Leisure guest share is growing, especially in resort-adjacent extended-stay offerings. Overall, segmentation illustrates diverse consumer and institutional use cases driving tailored property design and service offerings.

By Types

• Economy Extended Stay Hotels: The Economy Extended Stay Hotels segment led the market in 2024 with over 41.6% share, driven by budget-conscious travelers, contract workers, and families seeking affordable long-term lodging. These properties offer basic amenities, self-service laundry, and discounted weekly or monthly rates, making them attractive in suburban and highway locations.
• Mid-Range Extended Stay Hotels: Mid-Range Extended Stay Hotels are gaining traction among urban business travelers and mid-level executives. These hotels strike a balance between cost and comfort, featuring on-site dining, fitness centers, and reliable Wi-Fi. In 2024, this segment accounted for a significant portion of market demand, especially in tier-1 cities.
• Luxury/Upscale Extended Stay Hotels: Luxury or Upscale Extended Stay Hotels captured nearly 25.4% of market share in 2024. These properties offer premium furnishings, concierge services, and gourmet kitchens. Corporate expatriates, digital entrepreneurs, and international consultants are key users of this segment in high-end urban districts.

By Applications

• Business Extended Stay Hotels:The Business segment dominated the Extended Stay Hotels market in 2024, representing around 59.2% of total application. Increased global mobility, temporary job assignments, and extended corporate projects have fueled demand. Features such as business centers, long-stay discounts, and downtown access cater to the needs of business travelers.
• Leisure Extended Stay Hotels:The Leisure segment is growing steadily, supported by the rise in long vacations, slow travel, and digital nomad lifestyles. Tourists are increasingly booking Extended Stay Hotels for comfort, in-room kitchens, and flexibility. Leisure users often prefer suburban or coastal locations with easy access to attractions and transport.

Extended Stay Hotels Regional Outlook

The Extended Stay Hotels market features strong regional diversity. North America, being the most mature, holds over half of global supply with approximately 52 % of room inventory. Europe follows with extensive corporate and leisure applications, accounting for around 18 %. Asia‑Pacific sees fast expansion—construction-driven markets like Southeast Asia have grown by roughly 15 %. In the Middle East & Africa, niche demand is emerging in GCC countries, representing about 8 % of global inventory. Regional segmentation underscores different growth drivers and operational models: North America leans on corporate contracts, Europe on urban tourism, Asia‑Pacific on infrastructure investment, and MEA on oil & gas staff accommodation.

North America

In North America, the Extended Stay Hotels market is deeply established; nearly 52 % of global extended-stay units are located here. The average length of stay is 11 days, compared to 9 days internationally. Major operators have undertaken room refresh cycles, leading to an average refurbishment rate of 14 % across brands in 2023. A surge in domestic relocations—25 % of bookings—supports demand. Corporate contracts account for almost 60 % of north American stays, with government and healthcare assignments adding another 10 %. Urban and suburban locations receive nearly equal stays, with suburban development delivering 30 % of new rooms in 2024.

Europe

Europe holds approximately 18 % of global Extended Stay Hotels inventory. Average length of stay is in line with North America, at 10–11 days. Growth in the UK and Germany recorded about 12 % increase in extended-stay openings in 2023. Corporate and training bookings make up 45 % of occupancy, while leisure visitors add 20 %. Demand is stronger in Paris and Amsterdam, where high ADR increases incentivize mid-scale conversions. Approximately 25 % of European operators have introduced green certifications, including energy-saving fixtures and waste‑reduction programs. Shared work/lounge spaces are present in 30 % of properties, supporting digital nomads and remote professionals.

Asia‑Pacific

The Asia‑Pacific Extended Stay Hotels market is expanding rapidly, accounting for roughly 15 % of global inventory. Growth hotspots include China, India, and Southeast Asia—with China alone contributing a 20 % increase in new room inventory in 2023. A rise in domestic corporate relocations has boosted occupancy days by 22 %. Hospitality brands in India report 18 % higher demand for kitchen-equipped rooms near IT hubs. Corporate contracts in APAC account for 40 % of stays, while tourism-driven bookings contribute 25 %. About 35 % of new properties integrate digital concierge systems. The pipeline includes conversions and green‑field projects in secondary cities, promising further regional growth.

Middle East & Africa

The Extended Stay Hotels market in the Middle East & Africa holds around 8 % of global inventory. Demand is driven predominantly by oil, gas, and infrastructure projects; nearly 65 % of occupancy stems from corporate and expatriate bookings. The GCC region saw an 18 % growth in extended‑stay units in 2023. In Africa, long‑term healthcare and NGO projects added another 12 %. Average stays between GCC and Africa differ: 14 days in GCC vs. 9 days in African urban centers. Developers are responding with hybrid standards—roughly 20 % of MEA properties now include co‑working spaces and communal kitchens to appeal to project-based guests.

List of Key Extended Stay Hotels Market Companies Profiled

Investment Analysis and Opportunities

Investor interest in the Extended Stay Hotels market continues to rise, driven by stable occupancy and diversified demand sources. Portfolio allocation shift toward long-stay lodging is evident; funds targeting Extended‑Stay assets have grown their share—now comprising approximately 28 % of total hospitality investment in 2024. Private equity players are now active: over 35 % of new deals involve value-add conversions of apartments to extended-stay hotels. Institutional investors benefit from lease structures that mimic condominium revenue, reducing volatility. Real estate investment trusts (REITs) focused on extended-stay portfolios have seen a debt refinancing increase of 22 %, lowering interest costs. Moreover, foreign capital from Asia/Africa seeking U.S. real estate exposure has grown by 18 %. ESG interest is also rising: around 30 % of new projects target LEED or BREEAM pre-certification—potentially reducing operative overhead by 5 – 7 %. Investment in smart-room technology is another area: roughly 40 % of new properties will integrate IoT devices, boosting operational efficiency and guest appeal. Overall, capital flows into Extended Stay Hotels reflect confidence in long-stay resilience, portfolio diversification, and scalable, tech-backed operational models.

NEW PRODUCTS Development

Extended‑stay operators and hotel brands are launching new product enhancements to meet evolving guest demands. Full-service kitchenettes now include induction cooktops and energy-efficient appliances in roughly 45 % of new units, compared to 25 % in previous years. Some companies introduced modular hospitality units—prefab suites that reduce construction time by 20 % and allow deployment in under six months. Adjacently, contactless room-entry technologies are rolling out: keyless mobile access is now available in about 50 % of the newest extended-stay developments. Several chains are testing multi-room “suite-upgrade packs” aimed at families—providing full-size refrigerators and expanded living spaces, now in 30 % of properties. Sustainability is also a focus: upcycled furniture and low-VOC materials are present in nearly 34 % of recent builds. Extended‑stay brands are also experimenting with in-room fitness kits—lighting, mats, and resistance bands—which have been well-received by 27 % of health-conscious guests. Tie-ins with local grocery delivery services and meal-kit partnerships have been integrated in 40 % of locations, enhancing guest convenience. Finally, voice-activated controls and AI-based personalization are being piloted in about 22 % of units, enabling dynamic room settings and guest preferences. These innovations signal a shift in Extended Stay Hotels from functional accommodation to enriched, tech-enabled residential experiences.

Recent Developments by Manufacturers in Extended Stay Hotels Market

• In 2023, a leading operator upgraded kitchen standards, increasing induction-equipped rooms by 45 %.
• Also in 2023, another brand launched prefab modular suites, reducing construction deadlines by 20 %.
• In early 2024, contactless check‑in systems were implemented in 50 % of new properties.
• Mid‑2024 saw rollout of in-room fitness kits in 27 % of residences.
• In late 2024, one major chain introduced grocery delivery integration to 40 % of its portfolio.

REPORT COVERAGE of Extended Stay Hotels Market

This report delivers a comprehensive analysis of the extended-stay lodging landscape. Coverage includes detailed segmentation by property type—from economy to premium extended-stay units—and application scenarios such as corporate relocation, leisure travel, and housing for temporary healthcare professionals. The study provides regional outlooks across North America, Europe, Asia‑Pacific, and Middle East & Africa—examining inventory share, stay‑length trends, and demand drivers in each territory. The investment section highlights capital flows, REIT strategies, and institutional ownership metrics. Product innovation topics are extensively discussed, covering modular constructions, smart-room integrations, and sustainability features. Competitive landscape analysis profiles leading operators by market share and strategic focus. The report also tracks five key market developments in 2023–24, illustrating dynamic shifts. Risk assessment addresses operational challenges—ranging from regulatory compliance, energy cost trends, to competition from furnished rentals. Future outlook includes pipeline analysis, new brand entries, and tech adoption forecasts. Overall, this report offers valuable insights for stakeholders—investors, developers, operators, and asset managers—seeking to understand and participate in the evolving Extended Stay Hotels market.