The global Extended Stay Hotel Market is witnessing strong growth as travelers increasingly seek flexible, comfortable, and cost-effective accommodation for longer periods. Extended stay hotels combine the convenience of traditional hotel services with residential-style amenities such as kitchen facilities, workspaces, laundry services, fitness facilities, and long-term pricing options.

According to Fortune Business Insights, the global Extended Stay Hotel Market was valued at USD 64.38 billion in 2025 and is projected to grow from USD 70.59 billion in 2026 to USD 147.56 billion by 2034, exhibiting a CAGR of 9.65% during 2026–2034.

Extended Stay Hotel Market Growth Drivers

The increasing demand for flexible long-term accommodation is a major factor supporting market growth. Business travelers, relocating professionals, healthcare workers, project-based employees, and digital nomads increasingly require accommodation that offers residential comfort while retaining hotel-style services.

Extended stay hotels provide practical amenities such as kitchenettes, laundry facilities, workspaces, fitness centers, and flexible long-term pricing. These features make them attractive to guests who need accommodation for several weeks or months.

The expansion of corporate travel, infrastructure development projects, and remote work culture is further contributing to demand. Hospitality operators are also expanding their extended stay property portfolios near business districts, healthcare centers, technology corridors, and industrial areas.

Mid-Range Hotels Hold a Leading Position

Based on type, Mid-Range Extended Stay Hotels account for approximately 44% of the market. These properties attract corporate travelers, remote workers, and business professionals seeking a balance between affordability and comfort.

Mid-range properties generally offer larger room layouts, workspaces, fitness facilities, complimentary breakfast, and enhanced guest services. Hospitality companies are increasingly developing these properties near technology parks, medical centers, transportation hubs, and business districts.

Economy Extended Stay Hotels account for approximately 38% of the market. These properties provide affordable long-duration accommodation for budget-conscious travelers, contract workers, relocating families, and project-based employees.

Luxury/Upscale Extended Stay Hotels represent approximately 18% of the market. These properties cater to affluent travelers, senior executives, expatriates, and international business travelers seeking premium residential-style accommodation and personalized services.

Domestic Travelers Drive Market Demand

By tourist type, Domestic Travelers account for approximately 67% of the market. Local business travel, relocation activities, healthcare-related stays, and regional tourism are generating significant demand for long-duration accommodations.

Domestic travelers often choose extended stay properties for temporary housing during relocation, work assignments, family travel, and project-based employment. Hospitality providers are responding by offering flexible booking structures, loyalty programs, and localized services.

Direct Booking Supports Market Expansion

Direct Booking dominates the booking mode segment with approximately 61% market share. Hotel operators are increasingly encouraging customers to book directly through branded websites, mobile applications, and loyalty programs.

Subscription-based accommodation models and corporate travel agreements are also creating opportunities for extended stay hotel operators to attract recurring long-term customers.

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Hybrid Hospitality and Digital Services Shape the Market

The increasing popularity of hybrid hospitality concepts is one of the key trends shaping the Extended Stay Hotel Market. Travelers are increasingly looking for accommodations that combine hotel services with apartment-style living.

Kitchen facilities, remote workspaces, fitness centers, personalized lifestyle amenities, and co-working areas are becoming increasingly important for long-duration guests.

Hospitality operators are also exploring flexible pricing structures and subscription-based accommodation packages to strengthen customer retention and occupancy stability.

Remote Work and Digital Nomad Travel Create Opportunities

The expansion of remote work and digital nomad lifestyles is creating significant opportunities for extended stay hotels. Professionals increasingly require accommodation that supports both work and leisure for longer periods.

Hotels equipped with high-speed internet, co-working spaces, business lounges, wellness facilities, and comfortable workspaces can attract remote employees, freelancers, consultants, and location-independent professionals.

North America Leads the Regional Market

North America held the largest regional share at approximately 42% of the global market. Strong corporate travel activity, workforce mobility, and mature hospitality infrastructure are supporting regional demand.

The U.S. extended stay hotel market is experiencing strong demand from corporate travelers, temporary workforce populations, medical tourists, and relocating families. Major metropolitan areas and business hubs are seeing increased demand for long-duration accommodation.

Europe accounted for approximately 26% of the market, supported by business travel, international workforce mobility, tourism, and growing demand for flexible accommodation.

Germany contributes approximately 32% of Europe's market, while the U.K. accounts for approximately 24%.

Asia-Pacific represented approximately 24% of the market, driven by urbanization, expanding tourism infrastructure, corporate travel, and increasing workforce mobility.

Within Asia-Pacific, China accounts for approximately 39%, while Japan represents approximately 21% of the regional market.

Competitive Landscape

The Extended Stay Hotel Market includes major hospitality companies offering economy, mid-range, and luxury extended stay accommodations. Leading companies are focusing on expanding property portfolios, improving guest experiences, introducing digital hospitality technologies, and developing lifestyle-oriented long-stay properties.

Key companies identified by Fortune Business Insights include:

• Extended Stay America

• Marriott International, Inc.

• Hilton Worldwide Holdings Inc.

• The Ascott Limited

• Hyatt Hotels Corporation

• InterContinental Hotels Group

• Accor S.A.

• Sleep Intown IX, L.P.

• Choice Hotels International, Inc.

• Wyndham Hotels & Resorts

Market Challenges

Despite strong growth prospects, the Extended Stay Hotel Market faces challenges related to high operational and property management costs. Extended stay properties generally require larger room configurations, kitchen installations, laundry facilities, and additional amenities, which can increase development and maintenance expenses.

Labor costs, utility expenses, property maintenance, and housekeeping requirements can also affect profitability. Fluctuating occupancy patterns and economic uncertainty may further influence hotel operators' financial performance.

Investment Opportunities

The market is attracting investment from hospitality operators, real estate developers, and institutional investors seeking long-term accommodation demand.

Investment opportunities are emerging in mixed-use hospitality developments, apartment-style hotels, co-living concepts, smart hospitality properties, and technology-enabled guest service platforms.

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Future Outlook

The Extended Stay Hotel Market is expected to maintain strong growth through 2034 as corporate mobility, remote work, digital nomad travel, healthcare-related stays, and relocation activities continue to generate demand for long-duration accommodation.

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