The Growing Demand for Extended Stays in Hotels

Demand is High

The post-pandemic hybrid working environment made extended stay one of the fastest-growing segments in hospitality. The demand for alternative accommodations continues to grow and gain popularity with business travelers, remote workers, families, corporate relocators, military personnel, traveling nurses, and more. 

While large hotel chains continue to invest heavily in this segment, demand for extended-stay lodging still outpaces supply.

Marriott’s Residence Inn, Element, TownePlace Suites and MidX Studios all appeal to different types of long-term travelers. Hilton has Home2 Suites and LivSmart Studios advertising apartment-style stays, Wyndham has Echo Suites, and Extended Stay America continues its steady expansion since it launched in 1995. 

Companies like Airbnb and VRBO were proof of concept that many travelers seek a more home-like atmosphere with convenient amenities, and they plan longer stays because of them.

A well-managed extended-stay property’s return on investment and operational benefits are high.


Benefits of Offering Extended-Stay Lodging

High Demand – Extended stay lodging shows steady growth with no sign of slowing. The tastes of all travelers, business or leisure, have changed.

Increased Revenue – Longer stays often result in higher revenue per guest.

Operational Efficiency – Extended stay guests usually require less housekeeping–less laundry, linen, and cleaning services and less check-in and check-out processing.

Diversified Revenue – Hotels can diversify revenue streams reducing reliance on short-term stays.

Customer Loyalty and Brand Recognition – Extended stay guests appreciate convenience and comfort and often become loyal to the brand that offers these.

Flexibility – Extended stay options offer the flexibility to accommodate different types of travelers.

Competitive Edge – Extended stay options can give hotels an advantage in the increasingly competitive market.

Long-term Growth – Investing in extended stays can contribute to stability and growth.


Make Your Property Appealing for Extended Stays

Offer a variety of room types and sizes – Extended-stay guests need more space and functional variety. Studio apartment-style designs and separate bedroom and living suites are popular.

Provide home-like amenities – Extended-stay guests need convenience such as functional kitchens and 24-hour laundry facilities.

Functional workspaces – Many extended-stay guests are there for work. Offer ample desk space with a functional work chair, task lighting, and electrical access. 

Be Pet-friendly – Some extended-stay guests won’t stay for long without their best friend, consider pet-friendly accommodations.  

Create a community – When guests are staying weeks at a time consider hosting social events, providing shared spaces, and offering loyalty programs.

Offer flexible rates and discounts – This can include weekly or monthly rates and senior and military discounts.

Market your property – Make sure extended-stay guests know what you have to offer with all of your marketing, emails and social media. 



*Skift – Blackstone and Starwood’s $1.5 Billion Deal Throws Fuel on Extended Stay

Hotel Business – The ascension of extended-stay hotels in the U.S.

Lodging Magazine – The Extended-Stay Segment Reaches New Heights

Hospitality Investor – Why Developers are Still Sold on Extended Stay


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