Extended Stay Hotel Market Size & Share, By Type (Economy, Mid-Range, Luxury/Upscale), Tourist Type (Domestic, International), Booking Mode (Direct Booking) - Growth Trends, Regional Insights (U.S., Japan, South Korea, UK, Germany), Competitive Positioning, Global Forecast Report 2025-2034

Market Outlook:

Extended Stay Hotel Market size is forecast to grow from USD 57.74 billion to USD 139.22 billion between 2025 and 2034, marking a CAGR of more than 9.2%. The expected industry revenue in 2025 is USD 62.62 billion.

• Base Year Value (2024): USD 57.74 billion
• CAGR (2025-2034): 9.2%
• Forecast Year Value (2034): USD 139.22 billion
• Historical Data Period: 2021-2034
• Largest Region: North America
• Forecast Period: 2025-2034

Market Dynamics:

Growth Drivers & Opportunities

The Extended Stay Hotel Market is experiencing robust growth, driven primarily by the increasing demand for flexible accommodations among business and leisure travelers. The rise in remote work has led to a surge in transient professionals who require temporary housing for extended periods, often making extended-stay hotels a more attractive option compared to traditional hotels. This demographic shift is supported by a global increase in corporate travel, as companies opt for extended stays to facilitate project-based work or relocations for employees.

Another significant driver is the growing trend of leisure travel that combines work with vacationing. Many travelers are now blending their work schedules with leisure, seeking accommodations that provide both work-friendly amenities and relaxation options. Extended stay hotels have strategically adapted to this demand by enhancing their facilities, offering fully equipped kitchens, spacious living areas, and on-site amenities, which are appealing for those looking for longer-term stays.

Additionally, the rise of digital nomadism is creating new opportunities within the extended stay segment. As more individuals seek a work-life balance that allows them to travel while maintaining their jobs, there is a growing need for flexible living arrangements in various locations. This trend is attracting property developers and investors, leading to a surge in new extended stay hotel openings in urban and vacation-centric areas.

Report Scope

Report Coverage	Details
Segments Covered	Type, Tourist Type, Booking Mode
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Extended Stay America, Marriott International,, Hilton Worldwide Holdings, The Ascott Limited, Hyatt Hotels, InterContinental Hotels Group, Accor S.A., Sleep Intown IX, L.P., Choice Hotels International,, Wyndham Hotels & Resorts

Industry Restraints:

Despite the promising growth trajectory of the Extended Stay Hotel Market, several restraints pose challenges to its development. One of the primary concerns is the intense competition among various accommodations, including traditional hotels, vacation rentals, and newer hospitality models like co-living spaces. This competition can lead to price wars and margin pressures, making it difficult for extended stay hotels to maintain profitability without compromising service quality.

Another significant restraint is the fluctuating economic environment, which can impact both corporate and leisure travel budgets. Economic downturns may lead to reduced travel among businesses and individuals, resulting in lower occupancy rates for extended stay properties. Moreover, fluctuating interest rates and construction costs can hinder the development of new extended stay properties, making it challenging for operators to expand their portfolios.

Lastly, evolving consumer preferences and expectations regarding health and safety can pose operational hurdles for the industry. The ongoing focus on cleanliness and hygiene, heightened by recent global events, is pushing extended stay hotels to invest in enhanced sanitation protocols and technologies. This increased focus may lead to higher operational costs and can affect profit margins if not managed effectively.

Regional Forecast:

North America

The Extended Stay Hotel Market in North America, particularly in the United States, is characterized by a robust and mature landscape. The U.S. hosts a significant number of established brands catering to both business and leisure travelers seeking accommodations for extended periods. Key metropolitan areas such as New York, Los Angeles, and Chicago serve as major hubs, attracting a considerable share of the market. Canada is witnessing growth as well, albeit at a slower pace, with cities like Toronto and Vancouver emerging as hotspots for extended stay properties. The increasing demand for temporary housing solutions, driven by the rise of remote work and business travel, positions North America as a critical region for market players.

Asia Pacific

In the Asia Pacific region, the Extended Stay Hotel Market is poised for significant growth, driven by rapid urbanization and an expanding middle class. China, in particular, stands out as a promising market due to its large population and increasing domestic travel. Major cities such as Shanghai and Beijing are seeing a surge in demand for short to medium-term accommodations. Japan, with its substantial international tourism and business travel, is also gaining traction, especially in urban centers like Tokyo and Osaka where extended stay options offer convenience for expatriates and long-term visitors. South Korea, particularly Seoul, is observing a similar trend, as both corporate relocations and tourism growth fuel the need for extended stay facilities.

Europe

The Extended Stay Hotel Market in Europe demonstrates a diverse landscape, with countries like the UK, Germany, and France leading in market size and potential for growth. The UK has a well-established extended stay segment, particularly in London, where corporate travelers and international tourists increasingly seek flexible lodging. Germany’s market is also strong, particularly in major cities such as Berlin and Frankfurt, driven by a thriving economy and a significant influx of business professionals. France, and especially Paris, is witnessing growing interest in extended stay accommodations, as international visitors and locals alike look for more personalized lodging solutions. The unique cultural and economic dynamics in these countries contribute to a favorable environment for the expansion of extended stay hotels, making Europe a key region for market development.

Segmentation Analysis:

In terms of segmentation, the global Extended Stay Hotel market is analyzed on the basis of Type, Tourist Type, Booking Mode.

Extended Stay Hotel Market: Type

The Extended Stay Hotel market is segmented into various types, including mid-range, luxury, and economy options. Among these, the mid-range segment is anticipated to demonstrate the largest market size due to its affordability and appeal to the working population. These hotels typically offer a balance of price and comfort, catering to both business travelers and families seeking longer stays. The economy segment also showcases considerable growth potential as budget-conscious travelers increasingly seek value without compromising essential amenities. Luxury extended stay hotels, while representing a smaller share, are witnessing a surge as more affluent travelers opt for upscale accommodations during extended trips.

Extended Stay Hotel Market: Tourist Type

Within the tourist type segment, the market can be divided into business travelers, leisure travelers, and group travelers. Business travelers are expected to account for a significant portion of the market due to the rising trend of remote work and the need for temporary relocations. This segment benefits from amenities like meeting rooms and workspace facilities. Leisure travelers are also a notable segment, particularly as families and groups seek extended stays for vacations or reunions. Group travelers, although smaller in size compared to other categories, are projected to experience the fastest growth. They often book extended stays for events or gatherings, driving demand for larger accommodations that can accommodate multiple guests.

Extended Stay Hotel Market: Booking Mode

The booking mode segment consists primarily of direct bookings, online travel agencies (OTAs), and corporate bookings. Direct bookings through hotel websites are increasingly favored as they often come with better rates and more flexible cancellation policies. This segment is expected to maintain a substantial market size. Meanwhile, OTAs are witnessing rapid growth as travelers lean towards digital platforms for convenience and accessible comparisons. The ease of online booking contributes to the rising trend of spontaneous travel planning, especially among younger demographics. Corporate bookings are also significant, representing a stable demand from companies seeking long-term stays for employees on assignments or relocations, making this segment crucial for market revenue stability.

Competitive Landscape:

The competitive landscape in the Extended Stay Hotel Market is characterized by a diverse array of players that cater to varying customer needs, from budget-conscious travelers to those seeking more upscale accommodations for longer stays. Key trends influencing the market include the growing demand for flexible lodging options, the increase in domestic travel, and the rising popularity of remote work, which has led to longer stays in hotels. Companies are focusing on enhancing customer experiences by providing amenities such as kitchen facilities, on-site laundry services, and social spaces. Moreover, the market is becoming increasingly consolidated as major hotel chains acquire smaller brands to expand their footprint and market share.

Top Market Players

1. Marriott International

2. Hilton Worldwide

3. InterContinental Hotels Group

4. Extended Stay America

5. Choice Hotels International

6. Wyndham Hotels & Resorts

7. AccorHotels

8. Red Roof Inn

9. La Quinta Inns & Suites

10. Best Western International