Extended Stay Hotel Market Size, Share & Trends Analysis Report By Type (Economy, Mid-Range, Luxury/Upscale), By Tourist Type (Domestic, International), By Booking Mode (Direct Booking), By Region, And Segment Forecasts, 2024 - 2030

Extended Stay Hotel Market Size, Share & Trends Analysis Report By Type (Economy, Mid-Range, Luxury/Upscale), By Tourist Type (Domestic, International), By Booking Mode (Direct Booking), By Region, And Segment Forecasts, 2024 - 2030

Extended Stay Hotel Market Growth & Trends

The global extended stay hotel market is expected to reach USD 98.80 billion by 2030 and expand at a CAGR of 9.4% from 2024 to 2030, according to a new report by Grand View Research, Inc. The increasing global demand for extended stay accommodations is driven by several key factors reshaping the hospitality industry. A significant contributor is the shift in consumer preferences towards accommodations that offer a residential-like experience. Travelers are increasingly seeking options that provide greater comfort and flexibility compared to traditional hotel rooms. Extended stay properties, with their expansive living spaces, fully equipped kitchens, and residential-style amenities, fulfill this demand by offering a more personalized and adaptable living environment suitable for longer stays.

The rise of remote work and increased job mobility further accelerates this trend. As remote and hybrid work arrangements become more prevalent, there is a growing need for accommodations that support extended stays. These travelers require environments that enable them to balance work and leisure in a setting that emulates home. Extended stay properties are ideally positioned to meet this need by providing facilities that support both productivity and comfort.

According to statistics released by The European Commission, European Union tourist accommodation establishments recorded 453 million overnight stays in the first quarter of 2024, representing a 6.6% increase compared to the same period in 2023. This growth in overnight stays is poised to significantly impact the regional extended stay hotel market. The uptick in tourism activity underscores a robust demand for diverse accommodation options, including extended stay properties. As travelers increasingly seek longer-term lodging solutions for both business and leisure purposes, extended stay accommodations—characterized by their provision of home-like amenities and flexible stay durations—stand to benefit from this upward trend.

The expanding volume of nights spent in tourist accommodations suggests a broader recovery and growth trajectory within the hospitality sector, which directly correlates with heightened demand for extended stay options. This segment's ability to cater to travelers requiring extended visits, coupled with its appeal to both short-term and long-term guests, positions it well to capture a substantial share of the market as overall tourism activity continues to rise. In essence, the 6.6% increase in accommodation nights not only reflects a rebound in travel but also signals a promising growth avenue for the extended stay hotel market, driven by the evolving preferences of travelers and a strengthened overall tourism landscape.

Corporate travel trends also contribute to the expansion of the market. Companies are increasingly leveraging extended stay accommodations for employees on long-term assignments or relocations. These properties align with corporate policies focused on cost reduction and enhanced employee satisfaction by offering a more comfortable and convenient living arrangement.

Additionally, the demand from leisure travelers seeking extended vacations or immersive travel experiences plays a significant role. As travelers prioritize meaningful and extended stays to fully explore destinations, extended stay properties cater to these preferences by providing accommodations that support longer, more relaxed visits. Urbanization and housing market dynamics also impact the demand for extended stay hotels. In rapidly urbanizing regions, high rental costs and limited long-term rental options make extended stay properties an attractive alternative. These accommodations offer a practical solution for individuals requiring temporary housing in challenging housing markets.

Extended Stay Hotel Market Report Highlights

• Companies are increasingly recognizing the benefits of extended stay options for employees on long-term assignments or relocation. Extended stay properties provide a more comfortable and cost-efficient alternative to traditional hotels, aligning with corporate travel policies focused on reducing expenses while enhancing employee satisfaction.
• Extended stay bookings through online marketplaces are expected to experience substantial growth in the coming years. These marketplaces provide a diverse array of property types and experiences that cater to travelers seeking unique or non-traditional accommodations, often offering more home-like environments and a broader range of amenities compared to conventional hotel settings. The platform-based model of these marketplaces enhances the visibility of extended stay properties, streamlining the process for potential guests to compare options and access accommodations more easily.
• In 2023, the luxury and upscale extended stay segment dominated the market. This growth is driven by rising numbers of affluent travelers and business executives seeking premium accommodations with high-end amenities and personalized services. As international business travel recovers and high-net-worth individuals seek extended stays in luxurious settings, the demand for properties offering exceptional comfort, exclusivity, and tailored services has significantly increased.

Please note The report will be delivered in 2-3 business days upon order notification.