Global Extended Stay Hotels Market Size, Share, Growth Analysis By Type (Economy, Mid-Range, Luxury/Upscale), By Tourist Type (Domestic, International), By Booking Mode (Online Travel Agencies (OTAs), Direct Booking, Marketplace Booking), By Age Group (15-25 Years, 26-35 Years, 36-45 Years, 46-55 Years, 66-75 Years), By End User (Travellers, Corporate Professionals, Management Trainees, Students, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Statistics, Trends and Forecast 2025-2034

Report Overview

The Global Extended Stay Hotels Market size is expected to be worth around USD 137.3 Billion by 2034, from USD 53.4 Billion in 2024, growing at a CAGR of 9.9% during the forecast period from 2025 to 2034.

The extended stay hotels market has seen significant growth in recent years, driven by the increasing demand for longer-term accommodations. As more travelers seek cost-effective and flexible lodging options, extended stay hotels are becoming an attractive choice. These hotels cater to both business and leisure travelers, offering home-like amenities for extended periods.

In addition, the growing trend of remote work and business travel has created new opportunities for the extended stay hotel industry. Professionals who require accommodations for longer durations appreciate the convenience of these hotels, which provide more space and amenities, such as kitchens, that traditional hotels cannot offer. This flexibility contributes to their growing popularity.

Furthermore, government investments in infrastructure development and tourism promotion have positively impacted the extended stay hotel market. Local governments are increasingly recognizing the potential economic benefits of extended stay properties and are providing incentives to attract investors. These investments further fuel the market’s expansion and increase the availability of accommodations for travelers.

On the regulatory front, extended stay hotels must comply with zoning laws, health and safety regulations, and tax policies. These regulations ensure that the quality of services provided remains high and that guests are offered a safe environment. The evolving regulatory landscape requires hotel operators to stay updated and adapt their strategies accordingly to maintain compliance.

According to Altexsoft, Extended Stay America reports that ~70% of guests stay a week or more, with ~50% staying a month or longer, far surpassing the 1.8–2.2-day industry average. This highlights the growing preference for longer stays and the value extended stay hotels offer for such guests.

In line with this, an AHLA survey, as stated by SojournSerai, found that 72% of long-term guests prefer accommodations with kitchen facilities, a key value driver in the decision-making process. This underscores the importance of providing home-like amenities to attract and retain guests.

Moreover, according to Extended Stay America, 85% of guests say they would choose an extended-stay hotel for future lodging needs. This statistic indicates that guest satisfaction is high, and there is a strong potential for repeat business, which benefits hotel operators and contributes to the market’s continued growth.

Key Takeaways

• The Global Extended Stay Hotels Market is projected to reach USD 137.3 Billion by 2034, growing at a CAGR of 9.9% from 2025 to 2034.
• The Domestic segment held a 68.1% market share in 2024, driven by local travelers’ preference for comfort, affordability, and convenience.
• Online Travel Agencies (OTAs) dominated the booking mode segment with a 49.5% market share in 2024 due to their convenience and competitive pricing.
• The 26-35 years age group led the market with a share of 34.2% in 2024, consisting mainly of young professionals and business travelers.
• North America holds the largest market share at 45.8%, valued at USD 24.4 Billion in 2024, driven by strong demand in business hubs and urban areas.

Tourist Type Analysis

In 2024, Domestic held a dominant market position in By Tourist Type Analysis segment of Extended Stay Hotels Market, with a 68.1% share.

In 2024, the Domestic segment of the Extended Stay Hotels Market held a leading market share of 68.1%. This dominance reflects the growing preference of local travelers opting for extended stays in their home countries. Domestic tourists typically seek comfort, affordability, and convenience, all of which are provided by extended stay hotels, thus boosting their demand.

On the other hand, the International segment accounted for the remaining share, with international tourists showing interest in extended stays due to various factors like business travel, leisure, and extended vacations. However, this segment’s share remains smaller compared to Domestic travelers, primarily due to travel restrictions and higher costs for international tourists.

The dominance of the Domestic segment highlights the market’s focus on local economic conditions, where extended stay hotels serve a broad range of travelers, including business professionals and families, who prefer staying longer at one location for both personal and professional reasons.

Booking Mode Analysis

In 2024, Online Travel Agencies (OTAs) held a dominant market position in By Booking Mode Analysis segment of Extended Stay Hotels Market, with a 49.5% share.

Online Travel Agencies (OTAs) dominated the By Booking Mode segment of the Extended Stay Hotels Market in 2024, securing a share of 49.5%. OTAs are preferred for their convenience, offering a wide selection of hotels and competitive prices, making them the go-to option for travelers.

Direct Booking followed closely behind, as it remains a popular choice for those seeking personalized service and loyalty benefits. However, it accounts for a smaller share due to limited access to various hotel options in comparison to OTAs.

Marketplace Booking, though growing in popularity, holds a smaller market share, mainly due to the perception that it lacks the comprehensive services provided by OTAs or direct hotel booking channels. As the market evolves, these booking modes continue to cater to different traveler preferences, with OTAs leading the way due to their extensive reach and user-friendly interfaces.

Age Group Analysis

In 2024, 26-35 Years held a dominant market position in By Age Group Analysis segment of Extended Stay Hotels Market, with a 34.2% share.

In 2024, the 26-35 Years age group led the Extended Stay Hotels Market with a share of 34.2%. This demographic consists mainly of young professionals and business travelers, who often require extended stays for work or relocations. The demand from this age group is further fueled by their familiarity with digital platforms and the flexibility that extended stay hotels offer in terms of amenities and longer bookings.

The 15-25 Years group, though smaller, continues to grow as more young travelers seek affordable, longer stays for educational purposes or leisure trips.

Older age groups, such as 36-45 Years, 46-55 Years, and 66-75 Years, hold smaller shares, reflecting trends in extended stay preferences. These groups are typically less inclined toward long-term stays unless for specific purposes like relocation or extended vacations. The focus on the younger demographic shows the increasing trend of work-life integration and longer-term travel for professional and personal reasons.

End User Analysis

Travellers led the market in 2024, capturing a 44.9% share of the Extended Stay Hotels Market.

In 2024, Travellers held a dominant position in the End User Analysis segment of the Extended Stay Hotels Market, accounting for a remarkable 44.9% share. The significant contribution of travellers can be attributed to the increasing number of individuals opting for extended stays due to leisure, business, or personal reasons. Extended stay hotels are highly preferred by travellers due to their flexible accommodation options and home-like amenities.

Corporate Professionals followed as the second largest segment, representing a substantial portion of the market. Corporate professionals, often on work-related assignments, tend to choose extended stay hotels for their convenience and comfort during longer stays, adding a significant share to the overall market growth.

In contrast, Management Trainees and Students occupy a smaller but noteworthy segment. Both groups tend to rely on extended stay hotels for mid to long-term housing solutions, especially in cities with educational and professional opportunities.

The Others category includes various individuals who may not fall into the primary end-user groups but still contribute to the market through niche demands. Collectively, these segments drive the diverse dynamics of the extended stay hotel industry.

Key Market Segments

By Type

• Economy
• Mid-Range
• Luxury/Upscale

By Tourist Type

• Domestic
• International

By Booking Mode

• Online Travel Agencies (OTAs)
• Direct Booking
• Marketplace Booking

By Age Group

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

By End User

• Travellers
• Corporate Professionals
• Management Trainees
• Students
• Others

Drivers

Surge in Relocation Trends Due to Remote and Hybrid Work Models Drives Growth in Extended Stay Hotels Market

The shift toward remote and hybrid work models has led to an increase in relocation trends. Many professionals are now seeking temporary accommodations for longer stays as they move to different cities or regions for work purposes. Extended stay hotels are positioned well to cater to this demand by providing affordable, flexible, and home-like accommodations. This trend has been accelerated as employees prioritize work-life balance and seek environments that allow them to maintain productivity outside their usual office spaces.

Additionally, the ongoing popularity of remote work has also prompted companies to adopt hybrid work models, further driving the need for extended stays. Professionals working in a hybrid setup require accommodations that offer more flexibility than typical short-term rentals, thus increasing the appeal of extended stay hotels. The ability to work remotely from a different city or country has created a new demand for longer bookings, making these hotels an attractive option for many.

Restraints

Rising Operational Costs and Regulatory Constraints Restrain the Extended Stay Hotels Market

The extended stay hotels market faces several challenges, one of which is rising operational costs. The pressure of inflation on utilities and labor costs is making it more expensive to run these hotels. This financial strain impacts profitability and can limit the ability of hotels to offer competitive pricing. Increased costs of services like housekeeping, maintenance, and energy bills affect the overall operational efficiency, making it harder for businesses to maintain their margins.

Additionally, zoning and regulatory constraints present another barrier to the growth of the market. Local governments may impose restrictions on the construction of extended-stay properties, especially in high-demand urban areas. This can limit the availability of new hotel developments and delay expansion plans, making it more difficult for hotel chains to capitalize on the growing demand.

Growth Factors

Growth Opportunities for Extended Stay Hotels Market

The integration of co-living models with extended-stay formats presents a significant opportunity for growth. Co-living offers a sense of community that appeals to many long-term guests, making it an attractive feature in extended stay properties. Combining these two models can provide both flexibility and comfort, attracting a broader range of customers, including digital nomads and young professionals.

Moreover, expanding strategically in Tier 2 and Tier 3 cities globally offers considerable potential for growth. As urbanization increases, these smaller cities are seeing a rise in business activities and relocation trends, presenting an untapped market for extended stay hotels. Furthermore, the development of loyalty programs tailored to long-stay guests can foster customer retention and increase bookings.

Partnerships with relocation and corporate housing companies are another avenue for growth. Collaborating with companies that deal with corporate moves or employee relocations can help extended stay hotels secure long-term bookings and build a steady customer base.

Emerging Trends

Trending Factors Impacting the Extended Stay Hotels Market

The extended stay hotels market is experiencing a range of trends that influence its growth. Contactless check-in and mobile room management systems have gained popularity, especially in the wake of the pandemic. These technological innovations improve the guest experience by offering convenience and safety, which is increasingly important for travelers.

Additionally, there is a rising demand for customizable in-room workspaces. Guests now expect accommodations that cater to their professional needs, with workstations and high-speed internet that enable efficient remote work. As a result, hotels are enhancing their room setups to meet these expectations.

Another emerging trend is the growth in pet-friendly extended-stay accommodations. As more people travel with pets, hotels are adapting by offering amenities and policies that accommodate pets, making extended stays more attractive to this growing segment of travelers.

Lastly, the adoption of sustainable design and energy-efficient operations is becoming a priority in the hospitality industry. Guests are increasingly drawn to eco-friendly accommodations that reduce their environmental impact. Extended stay hotels that embrace these practices are better positioned to attract environmentally-conscious travelers and align with industry sustainability goals.

Regional Analysis

North America Dominates the Extended Stay Hotels Market with a Market Share of 45.8%, Valued at USD 24.4 Billion

The North American region leads the extended stay hotels market with a significant share of 45.8%, valued at USD 24.4 Billion. This dominance can be attributed to the high demand for extended stay accommodations in key business hubs, tourism hotspots, and urban areas in the U.S. The steady growth of the corporate travel sector, along with the rising trend of long-term stays, further strengthens North America’s position in the market.

Europe Extended Stay Hotels Market Trends

Europe holds a notable share in the extended stay hotels market, driven by an increase in both corporate and leisure travel. The region benefits from well-established tourism infrastructure, especially in major cities like London, Paris, and Berlin. The market is also witnessing growth due to the rising preference for flexible lodging options for long-duration stays, particularly in response to evolving work-from-home trends and digital nomadism.

Asia Pacific Extended Stay Hotels Market Insights

Asia Pacific is experiencing rapid growth in the extended stay hotels market, fueled by the increasing number of international business travelers and the rise of middle-class populations in emerging economies like China and India. The region also sees growing demand for serviced apartments, as both domestic and international travelers seek flexible lodging solutions for longer stays due to urbanization and business expansion.

Middle East and Africa Extended Stay Hotels Market Outlook

The Middle East and Africa region is witnessing steady development in the extended stay hotels sector, driven by expanding business opportunities and a thriving tourism industry. With large-scale infrastructure projects, especially in the UAE and Saudi Arabia, demand for extended stays is on the rise. The market is particularly supported by the growing number of international business travelers and expatriates in these regions.

Latin America Extended Stay Hotels Market Developments

In Latin America, the extended stay hotels market is gradually growing, primarily in Brazil, Mexico, and Argentina. The demand for long-term accommodations is rising as more multinational companies expand their presence in the region. Additionally, the growing tourism sector and increasing urbanization contribute to the demand for extended stay hotels in major cities.

Key Regions and Countries

North America

• US
• Canada

Europe

• Germany
• France
• The UK
• Spain
• Italy
• Rest of Europe

Asia Pacific

• China
• Japan
• South Korea
• India
• Australia
• Rest of APAC

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of MEA

Key Extended Stay Hotels Company Insights

The global Extended Stay Hotels market in 2024 is poised to experience continued growth, driven by key industry players who are reshaping the landscape with their innovative strategies and services.

Extended Stay America remains one of the dominant players in the extended stay segment, offering a diverse portfolio of properties across the U.S. The company continues to cater to both business and leisure travelers with its reliable, cost-effective accommodation options.

Marriott International, Inc. is another major force in the market, with its well-established brand recognition and diverse property offerings. Marriott’s extended stay brands, such as Residence Inn and TownePlace Suites, maintain a strong market presence by focusing on providing long-term, homelike experiences for travelers.

Hilton Worldwide Holdings Inc. stands out for its commitment to delivering premium services in the extended stay category, particularly through its Homewood Suites and Home2 Suites brands. These properties offer extended stay solutions with flexible, customer-centric services tailored to the evolving needs of long-term guests.

The Ascott Limited is a key player in the extended stay market, especially in the Asia-Pacific region. Its strong portfolio of serviced residences under brands like Somerset and Citadines gives the company a competitive edge, focusing on both leisure and corporate clients seeking long-term stays in major metropolitan areas.

These companies continue to enhance their service offerings, ensuring that they meet the diverse demands of the growing extended stay market.

Top Key Players in the Market

• Extended Stay America
• Marriott International, Inc.
• Hilton Worldwide Holdings Inc.
• The Ascott Limited
• Hyatt Hotels Corporation
• InterContinental Hotels Group
• Accor S.A.
• Choice Hotels International, Inc.
• Wyndham Hotels & Resorts

Recent Developments

• In May 2025, Noble Investment Group (“Noble”) announced the acquisition of sixteen WoodSpring Suites long-term extended stay properties in two portfolio transactions, expanding its footprint in the extended stay sector. The deal strengthens Noble’s position in the growing long-term accommodation market.
• In August 2024, Pandox acquired three extended stay hotels in London for £230 million, marking a strategic expansion into the UK market. This acquisition enhances Pandox’s portfolio with premium long-term accommodation options in a key international market.
• In February 2025, Sandpiper, LLC announced the acquisition of an Extended Stay America Premier Suites property in Bradenton, FL, adding to its portfolio of extended stay accommodations. This deal underscores Sandpiper’s focus on expanding its presence in high-demand, long-term lodging markets.

Report Scope