The global extended stay hotels market is anticipated to expand from USD 62.8 billion in 2025 to USD 143.2 billion by 2035, registering a notable CAGR of 8.6%. The growth trajectory is shaped by rising demand for longer-duration accommodations, driven by remote workers, digital nomads, and business travelers seeking cost-effective, home-like lodging. These properties cater to evolving lifestyle needs, offering conveniences like kitchenettes, workspace, and laundry facilities. As hybrid work models become permanent and global travel rebounds, extended stay hotels present a viable alternative to traditional accommodations.
In 2024 and early 2025, mid-scale and economy-tier extended stay hotels have experienced higher occupancy rates, particularly in urban centers, suburban zones, and secondary cities. These locations are targeting growing demand from corporate professionals, healthcare workers, students, and relocating families.
Operators are leveraging digital transformation, deploying tools such as mobile self-check-in, AI concierge, and smart room automation to enhance guest satisfaction and operational efficiency. These innovations are enabling hotels to meet new expectations of tech-enabled, hassle-free hospitality across regions.
Sustainability is emerging as a central pillar of extended stay hotel strategy. Brands are integrating energy-saving lighting, low-flow plumbing fixtures, and recyclable guest amenities to reduce environmental impact and appeal to eco-conscious travelers. Simultaneously, franchise expansion and management contracts are helping hotel chains scale while ensuring consistent guest experiences. As Geoff Ballotti, CEO of Wyndham Hotels & Resorts, emphasized:
“More than ever, travelers today are looking for value, especially long-term guests booking extended stays. At the same time, they want a space that looks and feels like them. A space that's well-designed and inviting. We believe if you can give them that, they will come back, night after night, stay after stay. That's what ECHO Suites is all about: giving guests a great extended stay experience, at a great price, so that, like an echo, they repeat it, over and over again.”
| Metric | Value |
|---|---|
| Industry Size (2025) | USD 62.8 billion |
| Projected Industry Size (2035) | USD 143.2 billion |
| Value CAGR (2025 to 2035) | 8.6% |
The economic range leads the extended stay hotels market, driven by demand for budget-friendly long-term stays across urban and Tier-2 cities. Travellers remain the dominant end-user segment, supported by rising leisure tourism, digital nomad lifestyles, and a preference for flexible, experience-rich accommodations with essential modern amenities.
The economic range dominates the extended stay hotels market with a projected 41.2% share in 2025. This segment appeals to budget-conscious guests, including students, seasonal workers, and domestic tourists. Operators such as Extended Stay America, Red Roof Inn, and OYO Rooms offer economical long-stay packages that include essential amenities like Wi-Fi, kitchenettes, and weekly housekeeping. As urban centers face rising rental costs, long-term hotel stays become a viable substitute for affordable housing.
Additionally, corporate trainees and migrant professionals increasingly choose economic-range hotels over traditional rentals due to flexibility and cost savings. The rise of Tier-2 city travel and increasing gig economy participation are also expanding this segment’s consumer base. Given its price-performance advantage, the economic range continues to be a preferred investment for hospitality chains entering high-occupancy, low-cost zones.
In 2025, travelers emerge as the largest end-user segment in the extended stay hotels market, accounting for 34.7% of overall demand. This group includes leisure tourists, remote professionals, and solo explorers seeking flexible, affordable accommodation. The rise of digital nomadism and hybrid working models has expanded the traveler base beyond traditional tourists. Chains like Staybridge Suites, Woodspring Suites, and The Ascott Limited now offer custom long-stay packages with features like co-working spaces, streaming services, and self-service kitchens tailored to independent travelers.
With international borders reopening and preference shifting toward extended experiential travel, more individuals opt for hotels over rentals for security, amenities, and location access. Additionally, younger demographics influenced by social media trends and lifestyle content are driving up extended stays in popular metro destinations. As urban exploration and wellness-oriented travel grow, travellers will remain a key driver of revenue across global extended stay hotel chains.
The extended stay hotels market is expanding with rising demand from remote workers, relocations, and long-term stays. While regulatory hurdles and construction costs limit growth, emerging markets and midscale segments offer new opportunities. However, competition from alternative accommodations and economic volatility present ongoing challenges for sustained market expansion.
Flexible accommodation demand drives growth in extended stay hotels
Rising remote work trends, corporate travel, and longer project-based assignments are fueling demand for extended stay hotels that offer home-like comfort. These properties provide features such as kitchenettes, spacious rooms, and laundry access, appealing to business travelers, medical tourists, and digital nomads. With consumers seeking cost-effective yet comfortable options for longer durations, extended stay formats outperform traditional hotel models in terms of occupancy rates and revenue per available room (RevPAR).
Major players like Hilton, Marriott, and IHG are expanding their extended stay brands to capture this rising demand. The growing trend of blended travel-where work and leisure converge-is also supporting this growth trajectory across regions, especially in the United States, Europe, and Asia Pacific.
Regulatory barriers and market saturation challenge expansion plans
The extended stay hotels market faces significant challenges due to zoning regulations, construction permits, and occupancy restrictions in key urban markets. Compliance with local building codes often extends project timelines and increases upfront costs, impacting ROI. In mature markets like North America and Western Europe, market saturation has intensified competition, forcing operators to engage in aggressive pricing and promotional strategies.
Moreover, the demand for brand consistency and standardization across hotel chains introduces operational complexity, particularly for franchise models. These barriers limit scalability, especially for new entrants and smaller hotel groups aiming to penetrate this lucrative segment. Balancing brand integrity with regional compliance remains a key bottleneck for sustained expansion.
Emerging markets and midscale hotels present attractive growth avenues
Rapid urbanization, rising disposable incomes, and growing business hubs in emerging economies are opening new doors for extended stay hotel development. Countries such as India, Vietnam, and Indonesia are witnessing increased demand for long-term accommodations driven by corporate travel, medical tourism, and infrastructure projects. Simultaneously, the midscale extended stay segment is seeing a surge in interest due to its affordable pricing, making it appealing to a wider audience.
Leading chains are now introducing budget-friendly brands tailored for cost-conscious travelers, blending essential amenities with quality. These trends are enabling global operators to diversify their portfolios and establish a foothold in high-growth, underpenetrated regions, contributing significantly to revenue diversification.
The extended stay hotel market study identifies top trends across 30+ countries. Operators in key global markets can strategize based on evolving traveler preferences, urbanization, and the rising demand for flexible lodging solutions. The chart below draws focus to the growth potential of the top five extended stay hotel markets during the forecast period.
| Countries | Projected CAGR (2025 to 2035) |
|---|---|
| India | 12.9% |
| China | 11.2% |
| United Kingdom | 10.% |
| United States | 8.7% |
| Germany | 8.6% |
India’s extended stay hotels market is experiencing exceptional momentum, projected to grow at a 12.9% CAGR through 2035, making it the fastest-growing country in this segment. Rapid urbanization, coupled with a youthful, mobile workforce, has spurred demand for long-duration lodging in key hubs such as Bengaluru, Hyderabad, and Pune. The proliferation of tech startups, freelancers, and remote professionals has redefined hospitality, fostering a shift towards serviced residences, co-living units, and hybrid accommodations.
Unlike traditional hotels, these properties offer a balance of convenience and independence, with fully equipped kitchens, workspaces, and recreational amenities. The government’s Smart Cities Mission and improved digital infrastructure further enhance market readiness, especially in Tier II cities, showing parallel growth trends. Additionally, the integration of mobile-first services, automated check-ins, and digital concierge platforms aligns with evolving consumer expectations. Domestic operators are partnering with real estate developers to expand branded long-stay offerings across business corridors.
China’s extended stay hotels market is expanding at a strong 11.2% CAGR through 2035, positioning the country as a dominant force in the long-term lodging segment. Rapid urbanization, large-scale infrastructure development, and a digitally savvy population have accelerated the adoption of extended stay accommodations in key cities like Shanghai, Beijing, and Shenzhen. These urban centers, hubs for international trade and tech, attract business travelers, consultants, and project-based employees seeking extended stays with hotel-level services.
China's leadership in digital hospitality innovation, including smart room automation, AI-enabled concierge services, and mobile app-based check-in, has reshaped guest expectations. Property developers are repurposing commercial and residential assets into aparthotels and multi-use lodging spaces. Government alignment with tourism reform policies, under frameworks like Healthy China 2030, further supports sustainable accommodation formats. A surge in inbound business travel, relocation housing, and urban wellness tourism is driving demand for efficient and adaptable lodging solutions.
The United Kingdom’s extended stay hotels market is projected to grow at a stable 10% CAGR through 2035, driven by shifting lifestyle preferences and evolving work culture. The rise of flexible employment, remote work policies, and long-term educational programs has heightened demand for adaptable lodging across key cities including London, Manchester, and Birmingham. The UK's strategic position in global finance, education, and research makes it a magnet for transient professionals, international students, and corporate guests needing extended accommodations.
Operators are focusing on sustainable property design, with ESG-compliant developments, low-carbon building materials, and heritage building conversions into boutique long-stay properties. Extended stay brands are integrating smart technologies, automated services, and wellness features such as fitness centers and co-working lounges to enhance guest satisfaction. Growing domestic tourism and cultural events also support year-round occupancy for long-stay formats. With increasing investor interest and regulatory support for urban regeneration, the UK is transforming traditional hospitality into long-term value.
The United States maintains its position as the market leader in the extended stay hotels industry, expanding at a healthy 8.7% CAGR through 2035. The country’s mature hospitality infrastructure, diversified corporate housing ecosystem, and expansive business travel corridors support long-term accommodation formats. Major urban markets like New York City, San Francisco, Dallas, and Chicago are home to a broad range of brands such as Extended Stay America, Marriott’s Residence Inn, and Hilton’s Homewood Suites, each offering full-service residences with kitchens, workspaces, and long-stay rates.
The growth of healthcare travel, relocation programs, and higher education housing continues to sustain demand. Moreover, the USA hospitality sector is a frontrunner in contactless technology adoption, with features like mobile room access, voice-enabled room control, and automated front desk operations. Industry innovation is further driven by the blending of short-term rental models with traditional hotel frameworks.
The extended stay hotels market in Germany is expected to grow steadily at a 8.6% CAGR through 2035, supported by strong economic stability, a well-established manufacturing industry, and increasing requirements for long-term corporate accommodations. Cities like Berlin, Munich, and Frankfurt are key nodes in the European business ecosystem, attracting professionals, consultants, and academics seeking long-term accommodations with the comfort of home and the service of a hotel.
Germany’s focus on urban livability, energy-efficient architecture, and structured real estate regulations supports the development of serviced apartments and aparthotels equipped with green technologies and modular designs. Operators are emphasizing integrated workspaces, self-service options, and wellness features that appeal to business travelers and mobile talent.
The alignment of the extended stay format with Germany’s preference for privacy, efficiency, and sustainability makes it particularly viable in both urban and suburban zones. Moreover, support from EU-level tourism and urban development initiatives encourages adaptive reuse and digital transformation in the hospitality sector.
The extended stay hotels market is structured across three distinct tiers of suppliers, each deploying targeted strategies to gain a competitive advantage. Tier 1 players include industry giants such as Marriott International, Hilton Worldwide, Hyatt Hotels Corporation, and IHG Hotels & Resorts, all operating extensive brand portfolios like Residence Inn, Homewood Suites, Hyatt House, and Staybridge Suites. These brands benefit from high customer loyalty, international presence, and robust economies of scale.
Tier 2 suppliers, led by Extended Stay America, specialize in the long-stay segment and are expanding their portfolios with midscale and economy offerings such as Premier Suites and Select Suites. Tier 3 brands like Wood Spring Suites and Suburban Studios under Choice Hotels target cost-conscious travellers with functional, long-duration lodging.
Strategically, the market is being reshaped by product launches like Marriott’s Studio Res, designed to serve budget-oriented long-stay guests. IHG’s partnership with Novum Hospitality to expand Candlewood Suites into Germany signals regional diversification. Meanwhile, the rise of smart technologies-including contactless check-ins, AI-powered guest services, and digital concierge platforms-is improving operational efficiency and customer satisfaction.
Despite being moderately fragmented, the market poses high entry barriers due to capital intensity, regulatory hurdles, and strong incumbent brands. Nonetheless, niche entrants are targeting underpenetrated suburban and secondary urban markets, ensuring a dynamic and evolving competitive landscape.
Recent Extended Stay Hotels Industry News
The extended stay segment maintained strong performance in early 2025, with Choice Hotels reporting a 10.8% year-over-year expansion in its domestic extended stay operations. This aligns with broader market confidence and robust investor interest. According to Greg Juceam, CEO of Extended Stay America, “There continues to be demand bifurcation in the hotel industry, not just for extended stay hotels but overall, based on a consumer’s economic means.”
This shows the importance of value-driven hospitality models in periods of economic uncertainty. Key growth drivers include demand from remote workers, medical travellers, and corporate relocations, coupled with the sector’s quick adaptation to digital platforms and technology-enhanced lodging. With a hybrid positioning between traditional hotels and short-term rentals, the extended stay format continues to expand across new demographic and geographic segments.
| Report Attributes | Details |
|---|---|
| Current Total Market Size (2025) | USD 62.8 billion |
| Projected Market Size (2035) | USD 143.2 billion |
| CAGR (2025 to 2035) | 8.6% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Projections Period | 2025 to 2035 |
| Quantitative Units | USD billion for value |
| Room Ranges Analyzed (Segment 1) | Economic Range, Middle Range, Luxury Range |
| End Users Analyzed (Segment 2) | Travellers, Corporate Professionals, Management Trainees, Students |
| Stay Durations Analyzed (Segment 3) | Daily, Weekly, Monthly, Long Term |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia & Pacific; East Asia; Middle East & Africa |
| Countries Covered | United States, Canada, Brazil, Mexico, Germany, France, United Kingdom, Italy, China, Japan, South Korea, India, Australia, UAE, South Africa |
| Key Players influencing the Market | Extended Stay America, Marriott International, Hilton Worldwide, Choice Hotels, Accor Group, InterContinental Hotels Group (IHG), Wyndham Hotels & Resorts, The Ascott Limited, Oakwood, Hyatt Hotels Corporation |
| Additional Attributes | Growth of digital nomad culture, Rising demand from corporate professionals, Economic range rooms lead with 41.2% share (2025), Trave ler segment dominant at 34.7% (2025), Expansion of franchise networks across Asia and North America |
The market is segmented into Economic Range, Middle Range, and Luxury Range.
The market is segmented into Travellers, Corporate Professionals, Management Trainees, and Students.
The market is segmented into 15-25 Years, 26-35 Years, 36-45 Years, 46-55 Years, and 66-75 Years.
The market is segmented into North America, Eastern Europe, Western Europe, East Asia, South Asia and Pacific, Latin America, and Middle East and Africa.
The global extended stay hotels sector is projected to reach USD 62.8 billion by 2025.
The industry is anticipated to grow to approximately USD 143.2 billion by 2035, registering a CAGR of 8.6% from 2025 to 2035.
Key companies include Extended Stay America, Inc., Marriott International, Hilton Worldwide, IHG Hotels & Resorts, Hyatt Hotels Corporation, Choice Hotels International, Wyndham Hotels & Resorts, Sonesta International Hotels Corporation, Aimbridge Hospitality, Red Roof Inn, and Accor.
The increasing demand for flexible lodging solutions, especially among business travelers and remote workers, has significantly increased the extended stay hotel market.
North America holds a significant share of the market, driven by advanced healthcare infrastructure and the need for efficient diagnostic services.
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Extended Stay Hotels Market
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