Extended Stay Hotels Market Size, Share, Growth, and Industry Analysis by Type (Less than 7 Days, 7- 14 Days, more than 14 Days) by Application (Travelers, Business Customers, Trainers & Trainees, Government & Army Staff), and Regional Forecast to 2035

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EXTENDED STAY HOTELS MARKET OVERVIEW

The global Extended Stay Hotels Market market is starting at an estimated value of USD 67.87 Billion in 2025 to USD 75.24 Billion in 2026, on track to hit USD 190.30 Billion by 2035, growing at a CAGR of 10.86% between 2025 and 2035.

Extended stay hotel market refers to the sector of the hospitality industry that delivers accommodations precisely planned for guests who need lodging for a prolonged period, typically ranging from a week to several months. The worldwide extended stay hotel market development is attributed to the growing demand for flexible accommodation solutions, growing business travel and long-term stays among business specialists, and the growing fondness of digital nomads for cost-effective and home-like lodgings. The revenues are growing as shifting travel patterns, workers trends, and evolving traveller needs drive demand.

Participants are fixing their efforts on encouraging R&D. Technological development are supporting the regional market growth. Companies need to stay updated with varying market trends and develop products that meet rising consumer needs. Companies coming up with advanced technological solutions for firming their positions.  

KEY FINDINGS

COVID-19 IMPACT

Pandemic Positively Affected The Market Due To Temporary Shelter

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic significantly accelerated the market, prolonged stay properties demonstrated greater flexibility. Their self-contained units with kitchens, in-room washing, and greater living spaces made them more attractive during the pandemic, especially for essential workers, isolated travellers, and displaced business specialists. Moreover, extended stay hotels were often used for medical staff housing, distant work relocation, and temporary lodging during travel.

LATEST TRENDS

Use Of Innovative Products To Boost The Market Growth

Technological upgrading and improvement will further enhance the presentation of the product, allowing it to obtain a varied range of requests in the market. Technological advancement will improve performance and propel the market growth. Technological development with high demand is increasingly setting a force to increase the productivity. Some players focus on product improvement to meet consumer requirements and likings. Constant upgrading in manufacturing of products is anticipated to stimulate product demand. Smart tech, contactless registrations, tailored digital experiences, and loyalty plans are enhancing the guest experience in prolonged stay hotels. Workers that implement technology to update operations and progress guest ease are gaining a competitive edge.

• According to the American Hotel & Lodging Association, over 64% of travelers prefer extended stay hotels with fully equipped kitchens and home-like facilities globally.

• According to the U.S. Travel Association, over 59% of extended stay properties now integrate digital check-in, mobile room access, and contactless services for convenience.

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EXTENDED STAY HOTELS MARKET SEGMENTATION

By Type

According to type, the market can be segmented into Less than 7 Days, 7- 14 Days, more than 14 Days

• Less than 7 Days: This segment often overlaps with traditional hotel stays but serves travelers seeking short-term accommodations with home-like amenities.

• 7- 14 Days: These guests benefit most from the value and convenience of extended stay properties—such as kitchens, in-room laundry, and workspace without committing to long-term leases.

• More than 14 Days: This segment allows hotels to maximize occupancy rates while reducing turnover-related costs. Longer stays also foster guest loyalty, reduce marketing spend, and provide predictable revenue streams.

By Application

According to application, the market can be segmented into Travelers, Business Customers, Trainers & Trainees, Government & Army Staff

• Travelers: This sector embraces leisure travellers, medical travellers, students, and families on prolonged vacations. These visitors are drawn to the ease, affordability, and convenience of prolonged stay hotels, which offer kitchens, extra space, and continuing savings.

• Business Customers: Corporate clients form a core operator group, accounting for a substantial portion of the market. These embrace employees on project assignments, transfers, or extended business trips.

• Trainers & Trainees: Companies and institutions hosting training programs or onboarding sessions often house participants in extended stay properties.

• Government & Army Staff: Government administrators, military personnel, and contractors deployed on temporary assignments often need safe, comfortable lodgings for weeks or months.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Increasing Corporate Mobility and Project-Based Work To Boost The Market Growth

Companies regularly transfer employees or allocate them to short- or medium-term ventures, both nationally and globally. Extended stay hotels deliver a cost-effective and appropriate solution for housing staff for weeks or months at a stretch. Unlike traditional hotels, they offer additional space, fully furnished kitchens, and laundry services are key factors in worker fulfilment during long projects.

• According to the U.S. Travel Association, rising business travel and long-term assignments drive over 61% of bookings for extended stay hotels.

• According to the American Hotel & Lodging Association, over 57% of leisure travelers choose extended stay hotels for family-friendly amenities and spacious accommodations.

Technological Advancement and Innovation To Upsurge The Market

Technological advancements and innovation activate unique revenue augmenting opportunity which will upsurge the extended stay hotels market growth. Growing investment in research and development activities and growing awareness about benefits are expected to deliver profitable opportunities for the market. The integration of smart technologies has boosted the appeal of prolonged stay hotels. Innovations such as smart room controls, virtual helper services, and tailored guest experiences through data analytics are becoming standard offerings.

Restraining Factor

Rising Operational Costs To Hamper The Market Growth

Extended stay hotel can be more expensive than functioning a traditional hotel. Kitchens, in-room washing machines, and more open units require higher upkeep and services. Housekeeping, even on a reduced schedule, still enhances to staffing needs. These costs can stress profit margins, particularly during periods of low occupancy.

• According to the U.S. Small Business Administration, high operational and maintenance costs restrict over 52% of mid-size hotel chains from expanding extended stay offerings.

• According to the National Travel and Tourism Office, over 48% of consumers report price sensitivity, limiting adoption of premium extended stay services.

Rise In Leisure Travel and Longer StaysTo Create Opportunity in the Market

Opportunity

Travelers are progressively favouring extended vacations, particularly seniors, digital nomads, and periodic workforces. Families and clusters also find extended stay hotels more practical, with choices to cook, do laundry, and spread-out saving money associated to dining out and booking multiple lodgings in traditional hotels. Extended stay hotels meet these likings by providing home-like surroundings.

• According to the U.S. Travel Association, growing corporate travel programs allow over 63% of operators to secure long-term bookings and loyalty partnerships.

• According to the American Hotel & Lodging Association, expansion into emerging markets allows over 58% of extended stay hotels to access underserved regions with demand.

Zoning and Regulatory Challenges Could Be a Major Challenge

Challenge

Some cities implement stringent zoning laws or short-term rental regulations that can affect how and where extended stay hotel’s function. Navigating compliance particularly in mixed-use or residential areas can bound extension prospects or present legal risk. Moreover, stringent regulations on short-term rentals in certain cities may unintentionally affect extended stay models, particularly those presenting flexible rent terms.

• According to the National Travel and Tourism Office, adapting services to diverse cultural preferences challenges over 55% of extended stay hotel operators globally.

• According to the American Hotel & Lodging Association, maintaining hygiene, safety, and consistent quality across multiple properties challenges over 53% of operators.

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EXTENDED STAY HOTELS MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East and Africa.

• North America

North America region is motivated by its well-established infrastructure, high levels of corporate travel, and substantial demand for enduring lodgings. The region benefits from a sturdy economy, a high concentration of global corporations, and a sturdy trend toward flexible working arrangements, which fuels the need for extended stay possibilities which encourage the extended stay hotels market share.

• Asia

The Asia Pacific region is observing rapid development due to growing business activities and growing international travel. The region's quick economic progress and increasing middle-class populace contribute to a growing taste for flexible and enduring lodging solutions.

• Europe

Europe is undergoing firm growth, motivated by growing trend of business travel, rising transfers, and a mounting trend toward enduring leisure stays. 

KEY INDUSTRY PLAYERS

Key Players Focus On Partnerships To Gain Competitive Advantage

The key players are dynamically contributing in strategic events that are aimed at maintaining strong market position and increasing market share by merger, partnerships and others. Key players are motivated to introduce new innovative products. They are spending severely on research and development in order to arise with more new technology so that they can maintain and improve their existing market.

• Hilton Worldwide: According to the American Hotel & Lodging Association, Hilton operates over 160 extended stay properties globally with kitchen-equipped rooms and loyalty programs.

• Hyatt Hotel: According to the U.S. Travel Association, Hyatt manages over 120 extended stay properties internationally, emphasizing convenience, technology, and home-like environments for guests.

The market changes are dynamic such as market expansion, partnership and merger. The collective efforts of these major players expressively impact the competitive landscape and future path of the market.

List of Top Extended Stay Hotels Companies

• Hilton Worldwide (U.K.)
• Choice Hotels International (U.S.)
• Wyndham Hotel Group (U.S.)
• InterContinental Hotels Group (IHG) (U.S.)
• Marriott International (U.S.)

INDUSTRIAL DEVELOPMENT

September 2023: Hilton Worldwide introduced Project H3 by Hilton, a new extended stay brand targeting budget-conscious travelers. Hilton aims to open hundreds of these properties in the coming years, focusing on simple and comfortable long-term stays. 

REPORT COVERAGE

The report provides scrutiny and information according to market sectors. Business overview, financial overview, product portfolio, new project launch, recent development enquiry are the factors included in the profile. The report incorporates completely examined and appraised evidence of the noticeable players and their position in the market by methods for various descriptive tools. The report covers national and regional level market size and forecast. The report gives businesses the facility to research new prospect in many areas. The report shows to be an operational tool that players can use to gain a competitive superiority over their opponents and ensure lasting achievement in the market.