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
| Attribute | Value |
|---|---|
| Estimated Australian Industry Size (2025E) | USD 2.3 billion |
| Projected Australian Value (2035F) | USD 3.8 billion |
| Value-based CAGR (2025 to 2035) | 5% |
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.
Explore FMI!
Book a free demo
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.
| Category | Details |
|---|---|
| Market Value | The Australian extended stay hotel industry is projected to generate USD 2.2 billion in 2024, contributing approximately 70% of the Pacific region’s extended stay market. |
| Domestic Market Share | Domestic travelers account for 63%, with popular destinations including Sydney, Melbourne, and Brisbane. |
| International Market Share | International visitors make up 37%, with key markets including travelers from the United States, New Zealand, and Southeast Asia, who seek affordable extended accommodations for business, study, or tourism. |
| Key Destinations | Key destinations include Sydney's Central Business District (CBD), Melbourne's Southbank area, and Brisbane's Fortitude Valley. |
| Economic Impact | The sector generates significant revenue and supports local economies, creating jobs in hospitality and ancillary services, as well as contributing to tourism and business travel. |
| Key Trends | Increasing demand for self-catering options, flexible workspaces, and an overall rise in remote and hybrid working environments. |
| Top Travel Seasons | Peak seasons are the summer (December to February) and winter months (June to August), when both business professionals and tourists seek long-term accommodations for work, conferences, or extended vacations. |
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.
| Date | Development & Details |
|---|---|
| Jan 2025 | Launch of Digital Nomad-Friendly Packages: Accor's Mantra Group launched a "Work and Stay" package, offering discounted extended stays in major cities like Melbourne, with features like high-speed internet and ergonomic office setups. |
| Dec 2024 | New Family Extended Stay Programs: Quest Apartment Hotels introduced family-focused long-stay offerings, with amenities like child-friendly dining options, babysitting services, and recreational spaces tailored to families on long-term stays. |
| Nov 2024 | New All-Suite Hotel in Sydney: Ovolo Hotels opened a new location with fully serviced apartments designed for long-term stays. It features a mix of premium and standard suites to cater to both corporate clients and extended vacationers. |
| Oct 2024 | Introduction of Pet-Friendly Long-Term Stays: TFE Hotels launched a new program for pet owners at their Adina Apartment Hotels, with added services like pet-sitting, dog parks, and special pet amenities in popular areas like Sydney and Melbourne. |
| Sept 2024 | Eco-Friendly Extended Stay Options: The Art Series Hotel Group debuted an eco-conscious line of extended stay accommodations featuring energy-efficient amenities and sustainable living features in Adelaide, attracting environmentally-minded travelers. |
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.
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.
The industry is expected to grow at a CAGR of 5% from 2025 to 2035.
The market is projected to reach AUD 3.8 billion by 2035.
The key drivers include the rise of remote work, increased demand for long-term accommodations, and the trend of relocating professionals.
Key players include Quest Apartment Hotels, Accor’s Mantra Group, TFE Hotels, and regional extended stay hotels offering tailored services for long-term stays.
The industry is segmented into Economy Range, Middle Range, and Luxury Range.
The market is segmented into Travelers, Corporate Professionals, Management Trainees, and Students.
The market is divided into Long Term, Monthly, Weekly, and Daily stays.
The industry is segmented into Online Booking, In-person Booking, and Phone Booking.
The industry is divided into Domestic and International tourists.
The market is segmented by Men, Women, and Children.
Segmentation includes 15 - 25 Years, 26 - 35 Years, 36 - 45 Years, 46 - 55 Years, and 66 - 75 Years.
Rural Tourism Industry - Competitive Analysis and Market Share Outlook
GDS Technology Industry Competitive Analysis and Market Share Outlook
Heritage Tourism Market Analysis by Experience Type, by End User, by Tourist Type, by Booking Channel, and by Region - Forecast for 2025 to 2035
Competitive Analysis and Market Share Outlook
Luxury Yacht Industry Competitive Analysis and Market Share Outlook
Ethno-Tourism and Community-Based Ecotourism Industry - Competitive Analysis and Market Share Outlook
Australia Extended Stay Hotel Market
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
