Extended stay hotel industry is expected to gain about USD 62.8 billion in 2025 and about USD 143.2 billion in 2035. It would grow at a CAGR of about 8.6% from 2025 to 2035. The industry growth is propelled by increased business travel, rising relocation trends, and a growing preference for cost-effective, flexible lodging options.
Extended stay hotel revenues are rising as shifting travel patterns, workforce trends, and evolving traveler needs drive demand. Remote work and digital nomadism have led more professionals to book long-term stays in cities like Austin and Nashville, where booming tech and entertainment industries attract mobile workers.
Business travelers are also fueling growth by extending work trips into vacations, a trend known as “bleisure” travel. In 2023, Miami saw a surge in extended stay bookings as tech conference attendees stayed longer to enjoy the city’s beaches and nightlife.
Economic uncertainty has further increased demand, with displaced homeowners and relocating families choosing extended stay hotels over short-term rentals. In cities like Phoenix and Denver, where housing shortages persist, travelers are booking properties like Residence Inn and Stay bridge Suites for weeks or months at a time.
Healthcare-related travel has also boosted revenues. Families and patients seeking long-term treatment book extended stays near major medical hubs like Houston ’s Texas Medical Center, where they need comfortable accommodations for weeks at a time. As travelers prioritize flexibility, affordability, and convenience, extended stay hotels continue to thrive, catering to the evolving needs of business professionals, relocating families, and long-term visitors.
| Attribute | Details |
|---|---|
| Current Industry Size (2024A) | USD 57.2 Billion |
| Estimated Industry Size (2025E) | USD 62.8 Billion |
| Projected Industry Size (2035F) | USD 143.2 Billion |
| Value CAGR (2025 to 2035) | ~8.6% |
| Extended Analysis of Top Players Share in 2024 | ~18%-25% |
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The extended stay hotel industry has grown significantly, with a moderate CAGR of 9.2% from 2020 to 2024, reaching a market revenue of approximately USD 57.2 billion in 2024. This upward trend is expected to continue, with a projected CAGR of 8.6% from 2025 to 2035, leading to an estimated market size of USD 143.2 billion by 2035.
Several factors contribute to this robust growth. The demand for flexible lodging solutions, especially among business travelers and remote workers, has significantly increased the extended stay hotel market. In addition, the trend of digital nomadism and the need for temporary housing during relocations have further propelled market expansion.
Home-like amenities, such as fully fitted kitchens, are, therefore, very appealing and affirm to the changing preferences of longer-term guests, which ultimately enhance industry attractiveness, and further progress is ensured.
| Year | Global Hotel Industry vs. Global Extended Stay Hotels |
|---|---|
| 2020 | Hotel Industry: Severely impacted by COVID-19, with revenue dropping below USD 3 trillion due to lockdowns and travel restrictions. Extended Stay Hotels: Performed better than traditional hotels, supported by essential workers, medical staff, and long-term business stays. |
| 2024 | Hotel Industry: Recovered to USD 4.9 trillion, driven by leisure travel, business tourism, and luxury experiences. Extended Stay Hotels: Reached USD 57.2 billion, boosted by remote work trends, corporate relocations, and medical tourism. |
| 2025 | Hotel Industry: Expected to grow to USD 5.72 trillion (6.2% CAGR) as AI-driven personalization and eco-tourism gain traction. Extended Stay Hotels: Projected to expand to USD 62.8 billion (9.2% CAGR) with demand from digital nomads and long-term corporate stays. |
| 2035 | Hotel Industry: Estimated to surpass USD 8.9 trillion, driven by immersive experiences, automation, and sustainable tourism. Extended Stay Hotels: Anticipated to exceed USD 143.2 billion, fuelled by long-term accommodation needs, flexible work arrangements, and increased corporate investments. |
The COVID-19 pandemic severely affected the Global Hotel Industry in 2020, pushing revenues to below USD3 trillion due to a complete halt in international travel. However, by 2024, the industry rebounded to USD 4.9 trillion with business travel, AI-based hospitality solutions, and luxury tourism as major drivers. The industry is expected to grow to USD 5.72 trillion in 2025 and hit USD8-9 trillion by 2035, driven by technological advancements, immersive travel experiences, and sustainable practices.
In contrast, the Extended Stay Hotel Market was more resilient during the pandemic in 2020 because its business model focused on long-term guests, essential workers, and corporate relocations. The market achieved USD 57.2 billion in 2024, and with a CAGR of 9.2% from 2020 to 2024, the market's value is estimated to be USD 62.8 billion by 2025. Extended stay hotels become the ideal choice for homebound workers, digital nomads, and medical tourists as compared with conventional accommodations, which is boosting the growth in this sector, and it is likely to reach more than USD100 billion by 2035 through brands such as Hilton's "Project H3" and Choice Hotels entering the sector.
A notable shift is the rise of Airbnb and alternative long-term rental platforms, which compete with both sectors. However, hotels respond by offering hybrid models, co-living spaces, and extended-stay amenities. While traditional hotels remain the largest part of the business, the extended stay segment is growing at a faster pace as traveller preferences shift and corporate demand increases. The two markets will continue to expand, but the extended stay hotels are poised to redefine long-term travel trends for decades beyond 2035.
| Countries | Domestic vs. International Tourists (%) Contribution to Extended Stay Hotels (2024) |
|---|---|
| United States | Domestic: 70% / International: 30% |
| India | Domestic: 75% / International: 25% |
| Italy | Domestic: 40% / International: 60% |
| Mexico | Domestic: 55% / International: 45% |
| Thailand | Domestic: 50% / International: 50% |
| France | Domestic: 45% / International: 55% |
| Spain | Domestic: 60% / International: 40% |
| Indonesia | Domestic: 65% / International: 35% |
| Greece | Domestic: 30% / International: 70% |
| Australia | Domestic: 80% / International: 20% |
In developed nations like the United States and India, demand for short-term stay is generally higher in the country. As these countries are large in size and have multiple economic hubs, residents of such nations tend to seek longer lodging services in these specific regions.
For instance, professionals undertaking long-term projects in cities such as New York or Mumbai often opt for extended stay hotels that offer amenities like fully equipped kitchens and workspace areas, providing a home-like environment during their prolonged stays.
Conversely, countries such as Italy and Greece serve as prominent destinations for international tourists seeking extended stays. The attractions are the rich cultural heritage, historic monuments, and good climatic conditions. In this context, the extended stay hotels in the cities of Rome or Athens usually appeal to foreign tourists as it gives them a chance to dwell among the native people for longer periods. They are at par with home, yet the opportunity to visit this place leisurely.
In the extended stay hotels, Thailand and Mexico tend to have a balanced mixture of domestic and international guests. Destinations such as Bangkok and Chiang Mai in Thailand attract local professionals as well as international digital nomads who seek living arrangements that are cheap and flexible.
In Mexico, cities such as Mexico City and Playa del Carmen are popular destinations for domestic travelers as well as for international visitors looking for vibrant culture and economic opportunities.
Australia shows predominantly domestic clientele for its extended stay market. Landscapes covering large areas, along with high concentrations of industry in cities such as Sydney and Melbourne, enhance the demand for extended accommodations within residents traveling due to work or relocation.
Also, the geographical isolation of the country is the reason for less international extended-stay guests when compared to its domestic ones.
International extended stay tourists find their way into European countries such as France and Spain. International visitors seek to spend some more time in the cities of Paris and Barcelona because of the various cultural opportunities as well as business opportunities that abound in those places.
Most guests prefer to spend more time in extended stay hotels that provide all the facilities required for a long-term stay as they engage in business or leisurely exploration.
This diversified distribution of domestic and international tourists in the extended stay hotel market highlights the need for customization of services and amenities to address the specific needs of each group. The ability to understand these patterns allows extended stay providers to better serve their customers, improve guest satisfaction, and maximize occupancy rates across various regions.
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Domestic tourists drive the global extended stay hotel industry, relying on long-term stays for work assignments, relocations, and evolving travel needs. Unlike international travelers, they enjoy fewer visa restrictions, greater flexibility, and familiarity with local markets, making extended stays more convenient.
Corporate travel fuels much of this demand. In the USA , business professionals book extended stays in cities like Dallas and Atlanta, where long-term finance, tech, and healthcare projects require temporary housing. In India, IT specialists working on multi-month assignments in Bengaluru stay in properties like Marriott Executive Apartments, benefiting from proximity to major business hubs.
Relocating professionals and families also contribute to rising demand. In Australia, high housing costs in Sydney push domestic travelers to book long-term stays in apartment-style hotels such as Adina Apartment Hotels. In Canada, energy sector employees moving to Calgary rely on extended stays for temporary housing as they transition to permanent residences.
Medical tourism within home countries further strengthens the market. In Germany, domestic patients seeking specialized treatment in Berlin choose extended stay hotels near medical facilities. Similarly, in Japan, rural residents traveling to Tokyo for long-term treatments book serviced apartments for weeks at a time.
As domestic travelers seek flexible, affordable, and convenient accommodations, they continue to dominate the extended stay hotel industry worldwide.
Mid-range hotels dominate the global extended stay industry by offering affordable, comfortable accommodations with essential amenities for long-term travelers. Business professionals, relocating families, and medical tourists choose these hotels because they provide cost-effective solutions without compromising convenience.
Corporate travelers drive much of this demand. In the USA , professionals book extended stays at mid-range brands like Hyatt House and Homewood Suites in cities such as Chicago and Houston, where months-long consulting and engineering projects require temporary housing. In India, IT employees working on short-term assignments in Hyderabad stay at Lemon Tree Hotels, which offer business-friendly services at competitive rates.
Relocating families also contribute to this trend. In the UK, domestic movers facing rising housing prices in London book extended stays at Staybridge Suites while searching for permanent homes. In Canada, new employees transitioning to tech hubs like Toronto prefer TownePlace Suites, which provide kitchenettes and laundry facilities at reasonable rates.
Medical tourism further strengthens mid-range hotel dominance. In Thailand, patients seeking long-term treatment in Bangkok’s hospitals stay at Citadines Apart’hotels, benefiting from extended-stay discounts and proximity to medical centers. In Germany, patients and their families traveling to Munich for specialized care book mid-range hotels, prioritizing affordability over luxury.
By delivering practical amenities at accessible prices, mid-range hotels continue to attract cost-conscious business travelers, relocating families, and medical tourists, securing their dominance in the global extended stay market.
The USA extended stay hotel industry is rapidly growing due to the increase in travel for business, relocation, and changing consumer preferences. People are seeking affordable and convenient long-term accommodations with quality amenities.
Corporate travel plays a major role in this growth. Professionals working on long-term projects in cities like Dallas, Houston, and Chicago book extended stays at brands like Hyatt House and Residence Inn, which offer workspaces and fully equipped kitchens. In tech-driven hubs like Austin and Silicon Valley, software engineers and consultants favor extended stay hotels to accommodate multi-month assignments.
Relocation trends also contribute to industry growth. Rising housing costs in cities like Phoenix and Denver push relocating professionals and families to choose extended stay hotels as temporary housing while they search for permanent homes. Brands like Staybridge Suites and Homewood Suites attract these guests with spacious suites and family-friendly amenities.
Medical tourism further fuels demand. In Houston, families traveling for treatments at the Texas Medical Center book long-term stays in nearby extended stay hotels. Similarly, in Mayo Clinic’s Rochester, Minnesota location, extended stay properties provide convenient lodging for out-of-town patients undergoing prolonged medical care.
As remote work and flexible travel continue to rise, the extended stay hotel industry in the USA remains on an upward trajectory, meeting the needs of long-term travelers across multiple sectors.
Germany’s extended stay hotel industry is expanding as business travel, relocation trends, and medical tourism drive demand. Travelers increasingly choose long-term accommodations that offer affordability, flexibility, and essential amenities for extended stays.
Corporate travel fuels much of this growth. In cities like Berlin, Munich, and Frankfurt, professionals working on long-term assignments book stays at mid-range brands such as Adina Apartment Hotels and Citadines Apart’hotels. These hotels provide fully equipped kitchens and workspaces, attracting business travelers in industries like finance, technology, and automotive.
Professionals moving to Germany for work, especially in Berlin’s booming startup scene or Stuttgart’s automotive sector, prefer extended stay hotels as temporary housing while securing permanent residences. Properties like Staycity Aparthotels offer spacious accommodations, catering to expatriates and relocating professionals.
Medical tourism is another factor driving industry growth. Thousands of patients are attracted to Germany for specialty treatments, mostly to cities such as Munich and Hamburg. Long-term care traveling families book extended stay hotels that are close to large hospitals while taking into account cost and convenience.
For instance, guests looking for treatment at Charité in Berlin prefer extended stays over staying in regular hotels. Due to its growing demands and increased presence, the Germany extended stay hotel market continues its trend of being one of the key industries under significant growth.
The global extended stay hotel industry continues to expand as leading brands introduce new properties, partnerships, and services to meet rising demand for long-term accommodations. Some of the key players in the industry are Extended Stay America, Inc., Marriott International, Hilton Worldwide, IHG Hotels & Resorts, Hyatt Hotels Corporation, Staycity Group, and Accor SA.
Some of the key developments in the extended stay hotels industry are as follows
| Attribute | Details |
|---|---|
| Forecast Period | 2025 to 2035 |
| Historical Data Available for | 2020 to 2024 |
| Market Analysis | USD Million/Billion for Value |
| Key Regions Covered | North America; Latin America; Europe; South Asia; East Asia; Oceania; MEA |
| Key Segments Covered | Room Range, End User, Stay Duration, Booking Channel, Tourist Type, Age Group |
| Key Companies Profiled | 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; Staycity Group; SACO; Roomzzz Aparthotels; Frasers Hospitality; IHG Hotels & Resorts; Marriott International; Hilton Worldwide; Whitbread PLC; Accor |
The global extended stay hotel market is valued at approximately USD 57.2 billion in 2024. Analysts project it to reach USD 62.8 billion in 2025 and grow to around USD 143.2 billion by 2035, with an estimated CAGR of 8.6%.
The growing demand from corporate travelers, remote workers, and relocating professionals is fueling market growth. Medical tourism's increased trend, the growth of digital nomadism, and demand for low-cost long-term stays all support the expansion of the industry.
Mid-range extended stay hotels lead the market, as brands like Residence Inn, Hyatt House, and Staybridge Suites attract business travelers and long-term guests.
Leading brands include Extended Stay America, Inc., Marriott International, Hilton Worldwide, IHG Hotels & Resorts, Hyatt Hotels Corporation, Staycity Group, and Accor SA.
| Estimated Industry Size (2025E) | USD 410.3 Million |
| Projected Industry Size (2035F) | USD 943.7 Million |
| Value CAGR (2025-2035) | 8.7% |
| Estimated Market Size (2024E) | USD 94.6 billion |
|---|---|
| Projected Market Value (2034F) | USD 164.8 billion |
| Value-based CAGR (2024 to 2034) | 5.7% |
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