Australia Extended Stay Hotel Market (2025 - 2035)

Australia Extended Stay Hotel Market Size, Share, and Forecast Analysis Outlook From 2025 to 2035

The Australia extended stay hotel market is set for significant growth over the next decade, projected to expand from an estimated USD 2.3 billion in 2025 to USD 3.8 billion by 2035, reflecting a CAGR of 5% during the forecast period from 2025 to 2035. Demand for extended stay hotels is driven by factors like the increasing trend of business relocations, the rise in remote work, and the growing appeal of long-term, cost-effective accommodations for both leisure and corporate travelers.

Market Overview

This expansion is fueled by shifts in how people work, with remote work and hybrid arrangements becoming more common. The preference for self-sufficient and flexible accommodations is growing, with extended stay hotels offering convenient and affordable alternatives for business professionals, medical tourists, and individuals relocating for work or family reasons.

Semi-annual Market Update for the Australia Extended Stay Hotel Market

The following table shows a comparison of projected CAGR for the base year of 2024 and 2025, highlighting the shifts in market dynamics.

CAGR Values for Australia Extended Stay Hotel Market (2024 to 2025)

The Australian extended stay hotel industry is predicted to expand at a CAGR of 4.9% during the first half of 2024 and 5.1% for a minor improvement in the second half of 2024. This growth is predicted to be sustained until 2025, with a predicted CAGR of 5.2% for the first half of 2025 and 5.3% for the second half of 2025 due to rising demand for long-term business and leisure stays.

Footprint of the Australia Extended Stay Hotel Industry in the Pacific Region (2024)

The Australian extended stay hotel market continues to expand rapidly, with major cities like Sydney and Melbourne leading the charge. Increasingly, remote workers and families seeking long-term stays are choosing these accommodations over traditional hotels, driven by the need for more flexibility, affordability, and additional amenities like full kitchens and workspaces. These trends are enhanced by the growing popularity of "workations" - combining business with leisure travel.

Recent Developments

An Analysis of Australia Extended Stay Hotel Categories by Room Range and End User

Key Revenue-Generating Segment: Luxury Range Dominates Room Revenue

There is a high demand for Australian luxury accommodation within the country's extended stay hotel sector, and by 2025, this luxury segment is forecasted to yield the highest revenues. Luxury features comfortable suites and serviced apartments with full-fledged premium amenities geared towards comfort and convenience. Amenities include fully furnished kitchens, high-quality finishes, large living spaces, and personal concierge services designed to cater specifically to the long-term residents' needs.

Corporate executives, expats, and high-end travelers are the key generators of this demand. These travelers tend to favor luxury extended stays for long durations, looking for an atmosphere that provides both the familiarity of home and the opulence of high-end service. For instance, the upscale Shangri-La Residences in Sydney targets high-net-worth individuals, providing stylishly designed serviced apartments with breathtaking views of Sydney Harbour. The accommodations are accompanied by personalized services including personal chefs, housekeeping staff, personal assistants, and even individual office areas, making it a perfect choice for executives and global business travelers who require a mix of work and relaxation while on extended stays.

An exemplary luxury extended stay choice is Crown Towers Residences in Melbourne. It's set within the complex of Crown Melbourne and has available five-star amenities such as vast living space, first-rate kitchen facilities, and easy access to Melbourne's entertainment and business center. Its usage is in strong demand due to multinational corporations extending relocation packages incorporating upscale extended dwellings for chief executives. Also, wealthy people looking for temporary residence while on the move, or long-term accommodations while in the country on a visit, are choosing such expensive properties.

These upscale extended stays appeal to guests who appreciate discretion, convenience, and high-quality service while they are away from home. As remote employment becomes increasingly popular, the upscale extended stay market is likely to be the most profitable and continue rising in the years to come.

Corporate Professionals Lead the End User Segment

Corporate professionals are poised to dominate the revenue share of Australia’s extended stay hotel market, contributing nearly 48% of total market revenue by 2025. As businesses continue to adopt flexible working models and increase global operations, the demand for long-term accommodations for employees on relocation, executive assignments, and training programs is rising. Extended stay hotels have become the go-to option for corporate travelers due to the unique blend of business-friendly amenities and homelike comfort they provide.

For instance, Melbourne's Quest Apartment Hotels provides corporate clients with comfortable, fully serviced apartments that come with modern office facilities, fast internet, and fully equipped kitchens, enabling businesspeople to work hassle-free from their accommodation. These hotels are strategically positioned near business centers so that business people have easy proximity to their workplaces while they experience the seclusion and room of an apartment.

Equally, Meriton Suites in Sydney provides a luxurious option for extended stays, offering spacious suites equipped with workspaces, meeting areas, fitness centers, and other business facilities. Business travelers enjoying these accommodations gain the best of convenience, luxury, and functionality since Meriton Suites also features convenient access to Sydney's Central Business District, making it suitable for executives coordinating large projects or dealing with customer relationships.

As more companies are concentrating on international mobility and dispatching employees on short-term assignments or extended projects, the trend of "workation" is getting a lot of traction. Brisbane and Perth are among the cities where corporate professionals are fusing work and leisure for extended periods. The merging of office areas with recreational facilities, including gyms, lounges, and local cultural sites, facilitates the corporate visitors to achieve work-life balance. The blending of convenience and recreation has rendered extended stays a core component of corporate travel programs.

As long-term relocation and executive placement become increasingly frequent, corporate travelers will remain driving the highest returns in the Australian extended stay space, with such customized accommodations serving up the optimal blend of professional and personal area.

Competitive Landscape

The Australian extended stay hotel market is competitive, with large international hotel chains, such as Accor's Mantra Group, TFE Hotels, and Quest Apartment Hotels, dominating market share. Regional players also cater to specific needs, such as extended stays for relocating workers or tourists on long-term vacations.

2025 Market Share of Australian Extended Stay Hotel Players

Leading players include Quest Apartment Hotels, Accor's Mantra Group, and TFE Hotels, with smaller regional operators offering niche services.

Top Segments Studied in the Australian Extended Stay Hotel Market Report

By Room Range:

The industry is segmented into Economy Range, Middle Range, and Luxury Range.

By End User:

The market is segmented into Travelers, Corporate Professionals, Management Trainees, and Students.

By Stay Duration:

The market is divided into Long Term, Monthly, Weekly, and Daily stays.

By Booking Channel:

The industry is segmented into Online Booking, In-person Booking, and Phone Booking.

By Tourist Type:

The industry is divided into Domestic and International tourists.

By Demography:

The market is segmented by Men, Women, and Children.

By Age Group:

Segmentation includes 15 - 25 Years, 26 - 35 Years, 36 - 45 Years, 46 - 55 Years, and 66 - 75 Years.