As of 2023, the global extended stay hotel market has successfully attained a significant valuation of USD 54.51 billion, reflecting its robust growth trajectory.
Projections suggest that the market is poised to maintain a steady pace of expansion, with an estimated CAGR of 11.8% from 2023 to 2033. Such consistent growth is expected to propel the market to remarkable heights, culminating in an impressive value of USD 166.58 billion by the end of 2033.
| Attribute | Details |
|---|---|
| Extended Stay Hotel Market Size Value in 2023 | USD 54.51 billion |
| Extended Stay Hotel Market Forecast Value in 2033 | USD 166.58 billion |
| Extended Stay Hotel Market Growth Rate (2023 to 2033) | 11.8% |
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As per the FMI analysis, the market for extended stay hotels secured a 6.5% CAGR from 2018 to 2022, reaching market revenue of about USD 49.15 billion in 2022.
The tourism industry is progressing with the rise of participants and travel in leisure and outdoor activities.
The tourism and hospital industry are positively correlated and therefore with the rise in travelers in the tourism industry there is anticipated growth in the hospitality industry subsequently. Thus, the hospitality sector always tries to come up with new ideas and innovations with regard to accommodation.
The accommodation plays a significant role hence the accommodation providers need to plan and design accommodation based on various factors such as space, comfort, amenities, water supply, energy supply, environmental guidelines, traveler’s safety, etc.
Extended stay hotels are a perfect example of the development of accommodation in the hospitality industry.
Extended hotel stays are far more different than hotels and provide a unique experience of accommodation to travelers.
The fundamental features of extended stay hotels are far more flexible as compared to hotel stays. Hence, extended stay hotels are popular among travelers, making the market attain an 11.8% growth rate during the forecast period, in turn, accumulating USD 166.58 billion in revenue by 2033.
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India tourism is a mixture of culture, diversity, heritage, and pilgrim. Millions of travelers visit India for various reasons such as to learn India culture, to participate in activities, events, to study heritage. Apart from this various people visit for faith based tourism in India for pilgrims.
India is known for spirituality and also promotes spiritual tourism. Also various travellers visit India for eco-tourism and ethno tourism.
India has many ecological places and India has many cultures with their tradition, food and other things to discover. Thus, international tourist visiting India search for an accommodation to enjoy such activities. Hence, there can be a great demand for extended stay hotels in India.
Owing to the afore-mentioned factors, the market for extended stay hotels in India likely advances at 5.7% growth rate from 2023 to 2033.
According to the FMI study, the United States of America extended stay hotels industry secured 2.6% market share in 2022.
The extended stay hotel industry in the United States is progressing steadily, driven by factors such as increased demand for long-term accommodation, growth in business travel, and a rise in remote work.
Market players are adapting to evolving customer needs by enhancing technology, expanding amenities, and exploring new business verticals.
Every year millions of students and workers travel United States in search of job opportunities or study in institutes. Few of them also travel for business project or for academic programs. Therefore, there is a significant rise for temporary migrants in United States of America.
As they visit for a specific tenure they search for a temporary mode of accommodation. There are various options available such as hostel, hotels, poshtels, etc. but travellers specifically search for a small as well as comfortable and a budget friendly stay.
The extended stay hotels enable them to stay with their comfort, cook their food and with certain amenities provide them a comfortable stay. Hence, it helps to drive the extended stay hotel market in United States.
In 2022, the weekly sub-segment held about 18.0% of the value share in the market. This indicates a notable preference among a significant portion of tourists to book extended stays on a weekly basis, reflecting a desire for a more extended and immersive experience during their travels.
The weekly duration has become prominent in the extended stay hotel market due to its appeal to a wide range of travelers seeking flexibility, cost-effectiveness, and a more immersive experience.
Whether for business or leisure purposes, a one-week stay strikes a balance between shorter trips and longer-term commitments, accommodating professionals on project assignments and tourists exploring new destinations.
Offering discounted rates and providing home-like amenities, extended stay hotels cater to the evolving needs and preferences of travelers, making the weekly duration a popular choice in the market.
Leading players operating globally in the market and are focusing on expansion of new verticals to expand their business and create innovative systems to measure their environmental impact.
The competitive landscape in the extended stay hotels industry is dynamic and diverse, with several major players and a growing number of independent and boutique establishments.
To stay competitive, industry players strive to differentiate themselves through amenities, service quality, location, pricing strategies, and innovative solutions to cater to evolving customer preferences, such as remote workspaces and pet-friendly accommodations.
Recent Developments in the Market:
A total of US$ 54.51 billion is predicted by the market in 2023.
A value share of 2.6% was held by the United States in 2022.
The global market size is expected to be worth US$ 166.58 billion by 2033.
The market secured a 6.5% CAGR from 2018 to 2022
Hilton Worldwide, Hyatt Hotel, and Holiday Inn are the key players in the market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Room Range Types 5.1. Economic Range 5.2. Middle Range 5.3. Luxury Range 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 6.1. Travellers 6.2. Corporate Professionals 6.3. Management Trainees 6.4. Students 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Stay Duration 7.1. Long Term 7.2. Monthly 7.3. Weekly 7.4. Daily 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Booking Channel 8.1. Online Booking 8.2. In-Person Booking 8.3. Phone Booking 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Tourist Type 9.1. Domestic 9.2. International 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Consumer Orientation 10.1. Men 10.2. Women 10.3. Children 11. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Age Group 11.1. 15-25 Years 11.2. 26-35 Years 11.3. 36-45 Years 11.4. 46-55 Years 11.5. 66-75 Years 12. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 12.1. North America 12.2. Latin America 12.3. Western Europe 12.4. Eastern Europe 12.5. South Asia and Pacific 12.6. East Asia 12.7. Middle East and Africa 13. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 18. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 19. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 20. Key Countries Market Analysis 21. Market Structure Analysis 22. Competition Analysis 22.1. Hilton Worldwide 22.2. Hyatt Hotel 22.3. Choice Hotels International 22.4. InterContinental Hotels Group (IHG) 22.5. Marriott International 22.6. Wyndham Hotel Group 22.7. Holiday Inn 22.8. Extended Stay America 22.9. Candlewood Suites 22.10. Oyo rooms 22.11. Orange Hotel 22.12. 7 Days Inn 23. Assumptions & Acronyms Used 24. Research Methodology
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Extended Stay Hotel Market
