Global Extended Stay Hotel Market Size, Share, Trends, COVID-19 Impact & Growth Forecast Report – Segmented By Type (Economic, Middle and Luxury), Stay Duration (Weekly and Long Term), Tourist Type (Domestic and International), Booking Channel (Online, On Phone and In-Person), Application (Travelers, Business Customers, Trainers and Trainees, Government and Army Staff and Other Applications) and Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa) – Industry Analysis (2024 to 2029)

Updated On: June, 2024
ID: 14721
Pages: 150

Global Extended Stay Hotel Market Size (2024 to 2029)

The size of the global extended stay hotel market was worth USD 20.51 billion in 2023. The global market is anticipated to grow at a CAGR of 7.4% from 2024 to 2029 and be worth USD 31.48 billion by 2029 from USD 22.03 billion in 2024.

Current Scenario of the Global Extended Stay Hotel Market

The demand for Extended Stay Hotel (ESH) services has been growing gradually from the last few years and is likely to accelerate further during the forecast period. Y-o-Y rise in business travel, increasing remote work trends and growing need for flexible living arrangements are primarily responsible for the increasing demand for extended stay hotel services. Countries such as the United States, the United Kingdom, Germany, China and India are currently significantly high demand for ESH services due to the rapidly growing technology industry and swiftly spreading remote working trend. The demand for extended stay hotel services is anticipated to grow further during the forecast period and to address the growing demand, the market participants are increasing expanding their property portfolios and using technological developments to enhance customer experience.

MARKET DRIVERS

The growing business of travel worldwide is one of the key factors propelling the global extended stay hotel market growth.

The number of people that do business travel is steadily growing and is resulting in the increasing demand for extended stay hotel services. Business travelers mostly stay for 5 to 10 days and sometimes this limit will increase up to a month depending on the project requirements. Extended stay hotels are a suitable option to corporate travelers as these require accommodation for longer durations and often travel on official purposes due to projects, training and relocations. For instance, as per the report of the Global Business Travel Association (GBTA), global business travel spending was estimated at USD 1.7 trillion in 2022 and has been experiencing steady growth.

Y-o-Y growth in the gig economy is further boosting the extended stay hotel market growth.

The number of people working independently such as on contract basis or freelance has been growing gradually worldwide and is contributing to the increasing demand for extended stay hotel services. In the McKinsey’s American Opportunity Survey (AOS), an estimated 36% of the respondents were identified as the independent workers. As per the estimations, approximately 58 million Americans are independent workers. The population of gig economy workforce is anticipated to accelerate further in the coming years and result in the increasing demand for extended stay hotel services and drive the global market growth.

Y-o-Y growth in the demand for temporary housing services is contributing to the global market growth.

Extended stay hotels act like a temporary housing solution to the needy people and the demand for temporary housing solutions is growing promisingly in various regions due to factors such as natural disasters, home renovations, and delayed house closings. Extended stay hotels provide the necessary amenities and flexibility for individuals and families who are displaced and work like a promising solution in the emergency situations.

Furthermore, factors such as rapid expansion of relocation services, increasing number of people working on people working on project-based work, growing number of digital nomads and higher affordability of extended stay hotels compared to traditional hotels are aiding the global market growth. Y-o-Y growth in the medical tourism, the growing leisure travel market, rising popularity of staycations, growth in the remote work trends and increasing demand for pet-friendly accommodations are favoring the growth of the global market.

MARKET RESTRAINTS

High operational costs associated with extended stay hotels is primarily hampering the global market growth. The growing competition among the market participants, economic downturns that affect travel budgets, stringent regulatory requirements and seasonal demand fluctuations are impeding the growth of the global extended stay hotel market. Frequent changes in the consumer preferences, rising popularity of alternative lodging options like Airbnb and limited availability of extended stay hotels in prime locations are hampering the global market growth.

REPORT COVERAGE

REPORT METRIC

DETAILS

Market Size Available

2023 to 2029

Base Year

2023

Forecast Period

2024 to 2029

CAGR

7.4%

Segments Covered

By Type, Stay Duration, Tourist Type, Booking Channel, Application and Region.

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

Market Leaders Profiled

Accor Group, Ascott Limited, Blueground, Bridge Street Motor Inn, Bungalow Hotel, Candlewood Suites, Choice Hotels International, Corporate Worldwide Stay LLP, Crestwood Suites Hotel, Domio Inc., Extended Stay America, G6 Hospitality LLC, Ginosi Corporation, Hilton Worldwide, Holiday Inn, Hyatt Hotels Corporation, InTown Suites, InterContinental Hotels Group (IHG), Kasa Living Inc., Larkspur Landing, Le Square Phillips, Les Suites Hotel, Marriott International Inc., Mint House Inc., My Place Hotels of America LLC, National Corporate Housing Inc., Orange Hotel, Oyo Rooms, Sonder Holdings Inc., Synergy Global Housing LLC, The Locale LLC, WaterWalk Hotel Apartments, Wyndham Hotels & Resorts Inc., Zeus Living Inc. and 7 Days Inn., and Others.

 

SEGMENT ANALYSIS

Global Extended Stay Hotel Market Analysis By Type

The middle segment dominated the extended stay hotel market in 2023 and had 43.8% of the global market share. During the forecast period, the middle segment is predicted to register a healthy CAGR. The domination of the middle segment is primarily attributed to the Y-o-Y rise in the number of business travellers. For instance, an estimated 1.1 million people in the U.S. travel on business purposes every single day. The rising trend of bleisure travel and the expansion of corporate mobility programs are further aiding the expansion of the middle segment in the worldwide market.

The economic segment is another major segment and had 38.7% of the worldwide market share in 2023 and is predicted to witness a steady CAGR during the forecast period. Y-o-Y growth in the travel rates and increasing demand for budget-friendly accommodation options are primarily contributing to the growth of the economic segment in the global market.

The luxury segment is anticipated to be the fastest growing segment in the global market during the forecast period. The growing disposable income of people and the expansion of luxury hotel brands into the extended stay market are propelling the growth of the luxury segment in the global market.

Global Extended Stay Hotel Market Analysis By Stay Duration

The long term segment led the market with 56% of the global market share in 2023 and is predicted to grow at the fastest CAGR during the forecast period. The growth of the long term segment is primarily driven by the Y-o-Y rise in the corporate relocations, increasing number of long-duration business projects and rising need for medical tourism accommodations.

The weekly segment had a substantial share of the worldwide market in 2023 and is predicted to witness a steady CAGR during the forecast period.

Global Extended Stay Hotel Market Analysis By Tourist Type

The domestic segment led the extended stay hotel market by tourist type in 2023 and accounted for 62.9% of the worldwide market share. The growing usage of extended stay hotels by the domestic business travellers due to assignments and projects is one of the key factors propelling the expansion of the domestic segment. The cost benefits and amenities such as kitchen facilities and laundry services that are provided by the extended stay hotels is another significant factor promoting the segmental expansion.

The international segment is predicted to register the fastest CAGR in the global market during the forecast period.

Global Extended Stay Hotel Market Analysis By Booking Channel

The online booking segment dominated the market and captured 54.7% of the global market share in 2023 and is expected to continue to be the fastest growing segment in the global market during the forecast period. The growth of the online booking segment is majorly driven by the growing internet penetration worldwide. For instance, an estimated 4.9 billion people globally, which is also equivalent to 63% of the worldwide population were online in 2023 and this percent is likely to increase further in the coming years. The rapid adoption of smartphones and Y-o-Y growth in the e-commerce industry are further aiding the expansion of the online booking segment in the global market.

Global Extended Stay Hotel Market Analysis By Application

The business customers segment led the market in 2023 and held 38.8% of the global market share and is anticipated to be the leading segment in the worldwide market throughout the forecast period. The domination of the business customers segment is primarily attributed to the growing business travel worldwide and the cost savings and convenience associated with extended stay hotels to companies. For instance, as per the statistics published by the Global Business Travel Association, the global business travel spending was valued at USD 1.33 trillion in 2017, which was an increase of 5.8% from 2016 value. Furthermore, factors such as increasing globalization, Y-o-Y rise in the project-based work and corporate travel policies that support extended stay accommodations are aiding the expansion of the business customers segment in the global market.

REGIONAL ANALYSIS

North America was the most dominant region in the worldwide extended stay hotel market in 2023 and occupied 39.4% of the global market share. North America is anticipated to continue to dominate the market during the forecast period due to an increasing number of extended stay hotels, Y-o-Y rise in the business travel, high demand for extended stay hotels from the tech and finance sectors in cities like New York, San Francisco, and Toronto and rising trend of long vacations and workations among millennials in the North American region. For instance, as per the statistics of statista.com, the number of extended stay hotels in North America is gradually growing and was increased from 554 in 2018, 557 in 2019 to 563 in 2020.

Europe is a notable regional segment for extended stay hotels in North America and is anticipated to account for a substantial share of the worldwide market during the forecast period. Factors such as high business travel activity in major European cities such as London, Paris and Frankfurt, rising popularity of extended vacations among European residents and strong tourism sector are contributing to the growth of the European market growth. For instance, an estimated 713 million tourist visits recorded in Europe in 2018, according to UN Tourism.

The Asia-Pacific is expected to be the fastest growing regional segment in the global market during the forecast period. Y-o-Y rise in business travel, especially in countries like China, Japan, and India, rapid adoption of extended stay options among international tourists and increasing number of initiatives from the governments of Asia-Pacific countries to promote tourism are boosting the extended stay hotels market in the Asia-Pacific region.

KEY PLAYERS IN THE GLOBAL EXTENDED STAY HOTEL MARKET

Companies that play a notable role in the global extended stay hotel market include Accor Group, Ascott Limited, Blueground, Bridge Street Motor Inn, Bungalow Hotel, Candlewood Suites, Choice Hotels International, Corporate Worldwide Stay LLP, Crestwood Suites Hotel, Domio Inc., Extended Stay America, G6 Hospitality LLC, Ginosi Corporation, Hilton Worldwide, Holiday Inn, Hyatt Hotels Corporation, InTown Suites, InterContinental Hotels Group (IHG), Kasa Living Inc., Larkspur Landing, Le Square Phillips, Les Suites Hotel, Marriott International Inc., Mint House Inc., My Place Hotels of America LLC, National Corporate Housing Inc., Orange Hotel, Oyo Rooms, Sonder Holdings Inc., Synergy Global Housing LLC, The Locale LLC, WaterWalk Hotel Apartments, Wyndham Hotels & Resorts Inc., Zeus Living Inc. and 7 Days Inn.

DETAILED SEGMENTATION OF THE GLOBAL EXTENDED STAY HOTEL MARKET INCLUDED IN THIS REPORT

This research report has segmented and sub-segmented the global extended stay hotel market based on type, stay duration, tourist type, booking channel, application and region.

By Type

  • Economic
  • Middle
  • Luxury

By Stay Duration

  • Weekly
  • Long Term

By Tourist Type

By Booking Channel

  • Online
  • On Phone
  • In-Person

By Application

  • Travelers
  • Business Customers
  • Trainers and Trainees
  • Government and Army Staff
  • Other Applications

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa 

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Frequently Asked Questions

1. What is the extended stay hotel market growth rate during the projection period?

The global extended stay hotel market is expected to grow with a CAGR of 7.4% between 2024 and 2029.

2. What can be the total extended stay hotel market value?

The global extended stay hotel market is expected to reach a revised size of US$ 31.48 billion by 2029.

3. What are the top 5 key players in the extended stay hotel market?

Bungalow Hotel, Candlewood Suites, Choice Hotels International, Corporate Worldwide Stay LLP, and Crestwood Suites Hotel are top key players in the extended stay hotel market.

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