Global Extended Stay Hotel Market Insights Forecasts to 2033

• The Global Extended Stay Hotel Market Size was Valued at USD 54.40 Billion in 2023
• The Market Size is Growing at a CAGR of 11.60% from 2023 to 2033
• The Worldwide Extended Stay Hotel Market Size is Expected to Reach USD 162.95 Billion by 2033
• Asia Pacific is Expected to Grow the fastest during the forecast period.

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The Global Extended Stay Hotel Market Size is Anticipated to Exceed USD 162.95 Billion by 2033, Growing at a CAGR of 11.60% from 2023 to 2033.

 

Market Overview

The extended stay hotel is a type of accommodation designed for guests who require lodging for an extended period, usually a week or more. Extended stay hotel hotels offer services that serve long-term stays, such as spacious rooms or suites, fully equipped kitchens, in-room laundry facilities, and workspaces with desks and high-speed internet. The aim is to provide a comfortable, home-like environment with conveniences that support both daily living and work needs, making them ideal for business travelers, individuals relocating, or those needing temporary housing.

 

According to the World Travel and Tourism Council (WTTC), India ranks sixth in 2021 in terms of GDP contribution, Tourism and hospitality contributed USD 135.4 billion to India's GDP in 2021, up from USD 122 billion in 2020. Extended-stay hotels are play major contributor to the tourism sector. India’s share in international tourist arrivals in 2021 was 1.6%. India accounted for 33.8% of international tourist arrivals in the Asia-Pacific region in 2021.

 

The IHCL launched their initiative 'Paathya' in March 2022 at the Taj Palace Hotel, aiming to achieve zero plastic usage by 2030, 100% wastewater reuse, renewable energy sourcing, EV charging stations, paperless-green meetings, and upcycling raw materials. The initiative also includes plantable pens and notebooks, and serving dishes made from coffee waste.

 

In June 2023, the state cabinet of Bihar, India approved the five-star hotels proposed to be constructed by redeveloping three government-owned properties Hotel Patliputra Ashok, Sultan Palace, and Bankipur bus stand premises.

 

For Instance, In July 2024, Indian Hotels Company (IHCL) announced the opening of its sixth Ginger-branded hotel in Thane, Maharashtra, which is part of the Mumbai Metropolitan Region. This greenfield building epitomizes Ginger's lean luxury design concept, delivering visitors the perfect balance of business and relaxation in vibrant, contemporary settings.

 

Report Coverage

This research report categorizes the market for extended stay hotel based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the extended stay hotel market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the extended stay hotel market.

 

Driving Factors

The extended stay hotel market is driven by several key factors, including the rise in business travel and globalization, which increase the need for temporary housing for professionals on relocations and assignments. The growing trend of remote work and flexible employment arrangements also contributes to the demand, as digital nomads and temporary workers seek comfortable, functional living spaces. Economic growth, urbanization, and a booming tourism sector further fuel this demand by expanding city infrastructure and attracting long-term visitors. Extended-stay hotels offer affordability and value for money, along with essential services like in-room kitchens and workspaces, making them an appealing option for both business and freedom travelers. Additionally, technological advancements in booking and services enhance accessibility and convenience, driving further growth in the market.

 

Restraining Factors

The extended stay hotel market faces several challenges that could restrain its growth including high competition within the industry can lead to price wars and reduced profit margins, while economic downturns might decrease demand for extended stays due to reduced business travel and spending. Additionally, the high operational costs associated with maintaining quality services and facilities can impact profitability. Economic uncertainties, such as currency fluctuations, further complicate the market landscape, requiring operators to adapt and strategize effectively to sustain their position and growth.

 

Market Segmentation

The extended stay hotel market share is classified intoroom range types, stay duration, age group, tourist, booking channel, and end-user.

• The middle range segment is estimated to hold the highest market revenue share through the projected period.

Based on the room range type, the extended stay hotel market is classified into economic range, middle range, and luxury range. Among these, the middle range segment is estimated to hold the highest market revenue share through the projected period. The middle range segment dominates due to its balanced offering of affordability and comfort. This segment provides a wide variety of guests, including corporate professionals, long-term travelers, and temporary residents, by providing a mix of valuable amenities and services without the high costs associated with luxury accommodations or the basic features of economic options. The middle range segment’s appeal lies in its ability to deliver essential conveniences such as in-room kitchens, laundry facilities, and workspaces, making it an attractive choice for those seeking both practicality and comfort during extended stays.

According to the Hotel Association of India, in the luxury range, there is 1 branded hotel opening with 301 rooms in India and there are 3 hotels with 439 rooms for Branded Hotel Signings. In the middle range, there are 15 new branded hotel openings with 869 rooms, while branded hotel signings include 40 hotels with 2,301 rooms.

 

• The 26-35 years segment is anticipated to hold the largest market share through the forecast period.

Based on the age group, the extended stay hotel market is divided into 15-25 years, 26-35 years, 36-45 years, 46-55 years, and 66-75 years. Among these, the 26-35 years segment is anticipated to hold the largest market share through the forecast period. This demographic, comprising young professionals and those in mid-career stages, often requires extended accommodations due to job relocations, business assignments, or project-based work. The extended stay hotels provide their needs with amenities such as in-room kitchens, workspaces, and flexible booking options. The lifestyle and career demands of this age group make them a significant and growing portion of the market.

 

• The online booking segment dominates the market with the largest market share through the forecast period.

Based on the booking channel, the extended stay hotel market is categorized into online booking, in-person booking, and phone booking. Among these, the online booking segment dominates the market with the largest market share through the forecast period. This dominance is due to the convenience and efficiency of online platforms, which allow users to easily compare prices, check availability, and make reservations from any location. Additionally, the widespread adoption of digital technologies and the increasing preference for self-service options contribute to the growing reliance on online booking. The ability to access instant confirmation, special deals, and detailed reviews further strengthens the appeal of online booking, making it the preferred choice for a significant portion of travelers in the extended-stay hotel market.

 

• The corporate professionals segment is anticipated to grow at the fastest CAGR growth through the forecast period.

Based on the end-user, the extended stay hotel market is categorized into travelers, corporate professionals, management trainees, and students. Among these, the corporate professionals segment is anticipated to grow at the fastest CAGR growth through the forecast period. This growth is primarily driven by the increasing need for extended accommodations due to rising business travel, remote work trends, and long-term project assignments. As companies expand globally and require temporary housing solutions for employees on relocation or business trips, the demand for extended stay options tailored to corporate needs is expected to significantly increase in the market.

 

Regional Segment Analysis of the Extended Stay Hotel Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

 

North America is anticipated to hold the largest share of the extended stay hotel market over the predicted timeframe.

 

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North America is anticipated to hold the largest share of the extended stay hotel market over the predicted timeframe. North America is projected to lead the extended stay hotel market due to its robust demand driven by business travel, corporate relocations, and urban development. The region's significant number of business travelers and employees undergoing temporary relocations fuel the need for extended stay accommodations. Additionally, growing consumer preference for home-like amenities in such settings and the region’s economic stability further bolster market demand. Top of Form

Asia Pacific is expected to grow at the fastest CAGR growth of the extended stay hotel market during the forecast period. The region's robust economic expansion, rising middle class, and rapid urbanization are increasing the demand for extended-stay accommodations. Additionally, the growth of multinational businesses and tourism in countries like China and India further fuels this demand.

 

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the extended stay hotel market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

 

List of Key Companies

• Candlewood Suites
• Oyo Rooms
• Hyatt Hotel
• Wyndham Hotel Group
• Hilton Worldwide
• Ibis
• 7 Days Inn
• Marriott International
• Holiday Inn
• RADISSON Hotel Group
• Orange Hotel
• InterContinental Hotels Group (IHG)
• Extended Stay America
• Choice Hotels International
• IHCL
• ITC HOTELS
• Others

 

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

 

Recent Developments

• In May 2024, Extended Stay America, the leading mid-priced extended stay hotel brand in the United States, announced the launch of the Extended Stay America Premier Suites Fort Myers Airport in Fort Myers, Florida.

 

• In April 2024, Wyndham Hotels & Resorts is expanding into the upmarket extended stay segment, forming a strategic alliance with industry pioneer WaterWalk. The deal adds 11 hotels and over 1,500 rooms to the Wyndham ecosystem, renaming them as the newly created WaterWalk Extended Stay by the Wyndham brand.

 

• In April 2024, IHG Hotels & Resorts (IHG) and NOVUM Hospitality announced a long-term deal that will boost IHG's footprint in Germany to more than 200 hotels in approximately 100 locations through an innovative Holiday Inn - the niu brand collaboration and European debuts for IHG's Garner and Candlewood Suites brands.

 

• In June 2023, Marriott International announced plans to develop a new extended-stay brand, expanding its presence in the midscale sector.

 

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the extended stay hotel market based on the below-mentioned segments: 

 

Global Extended Stay Hotel Market, By Room Range Types

• Economic Range
• Middle Range
• Luxury Range

 

Global Extended Stay Hotel Market, By Stay Duration

• Long Term
• Monthly
• Weekly

 

Global Extended Stay Hotel Market, By Age Group

• 15-25 Years
• 26-35 Years
• 36-45 Years
• 46-55 Years
• 66-75 years

 

Global Extended Stay Hotel Market, By Tourist

• Domestic
• International

 

Global Extended Stay Hotel Market, By Booking Channel

• Online Booking
• In-Person Booking
• Phone Booking

 

Global Extended Stay Hotel Market, By End-User

• Travellers
• Corporate Professionals
• Management Trainee
• Students

Global Extended Stay Hotel Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa