The UK extended stay hotel market is expected to experience steady growth, projected to rise from USD 3.1 billion in 2025 to USD 4.9 billion by 2035, with a CAGR of 4.6%. This growth is primarily driven by the increasing demand for long-term stays from business professionals, expatriates, and families.
As more individuals seek flexible, home-like accommodations for work assignments, relocations, or extended vacations, the market is expanding to meet these needs. Extended stay hotels offer the convenience and affordability that attract both corporate clients and those needing temporary housing for personal reasons, making them a preferred choice for a variety of travelers seeking extended lodging options.
Market Overview
| Attribute | Value |
|---|---|
| Estimated UK Industry Size (2025E) | USD 3.1 billion |
| Projected UK Value (2035F) | USD 4.9 billion |
| Value-based CAGR (2025 to 2035) | 4.6% |
The rising demand for extended stays can be attributed to the increase in remote work, as well as a rise in corporate relocations and long-term assignments. Additionally, an uptick in medical tourism and a greater focus on self-sufficient accommodation options are contributing to the sector's growth.
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The following table offers a comparative assessment of the changes in CAGR for the base year, 2024, and the current year, 2025, tracking the shifts in market dynamics.
CAGR Values for UK Extended Stay Hotel Market (2024 to 2025)
The UK extended stay hotel market is expected to grow at a CAGR of 4.7% in the first half of 2024, with a slight increase to 5.0% in the second half. The growth rate is projected to further rise to 5.1% in H1 2025, and 5.3% in H2 2025, fueled by the increased demand for both business and leisure long-term stays.
| Category | Details |
|---|---|
| Market Value | The UK extended stay hotel industry is expected to generate USD 2.5 billion in 2024, contributing 20% of Europe's extended stay market. |
| Domestic Market Share | Domestic tourists account for 60% of the market, with popular locations including London, Manchester, and Edinburgh. |
| International Market Share | International visitors represent 40%, with key markets including European, American, and Middle Eastern tourists seeking long-term stays for business, studies, or relocation. |
| Key Destinations | Key destinations include London’s Canary Wharf, Manchester’s Northern Quarter, and Edinburgh’s Old Town area. |
| Economic Impact | The sector plays a crucial role in local economies, especially through long-term corporate stays and relocations. |
| Key Trends | Increasing demand for workation-style stays, rise in hybrid work models, and preference for serviced apartments with business amenities. |
| Top Travel Seasons | Peak seasons for extended stays occur during summer and winter, with many opting for long stays during holidays or relocation periods. |
The UK extended stay hotel sector remains a significant part of the nation's accommodation sector. The flow of businesspeople and expatriates, particularly in commercial centers such as London's Canary Wharf, further accentuates the growing need for more flexible accommodations. With an increasing number of firms embracing hybrid work strategies, hotels now focus on providing work-friendly facilities like ergonomic seating, high-speed internet, and office areas.
Some of the key trends in the market are the increasing demand for remote work accommodations, the rise in expatriate life, and the growth of corporate housing services. The popularity of workations or blending work and vacationing has also increased demand for long-term stays with facilities like kitchenettes, fitness areas, and co-working facilities.
| Date | Development & Details |
|---|---|
| Jan 2025 | Launch of ‘Home-Work’ Stay Packages Marriott’s Residence Inn UK introduced a new "Home-Work" package designed for remote professionals seeking long-term stays. The package offers ergonomic workspaces, on-demand business services, and flexible booking options. |
| Dec 2024 | Family Extended Stay Programs Launched Staybridge Suites UK rolled out a new family-focused extended stay program, offering children’s amenities, outdoor spaces, and family-friendly services tailored for long-term stays. |
| Nov 2024 | New All-Suite Hotel in Birmingham Homewood Suites launched a new property in Birmingham, featuring spacious all-suite rooms equipped with kitchenettes and separate living areas, catering to corporate relocations and long-term international guests. |
| Oct 2024 | Upscale Extended Stay Properties Expanding The Langham Hotels launched a luxury extended stay option in London, offering fully serviced apartments with premium services, appealing to both corporate clients and high-net-worth individuals. |
| Sept 2024 | Pet-Friendly Long-Term Stay Packages TownePlace Suites by Marriott introduced a pet-friendly program that offers specialized services for guests traveling with pets, including dog parks and pet-sitting services, catering to travelers seeking extended stays. |
The UK extended stay hotel sector is shifting majorly towards luxury lodging, a trend that will yield the most revenue by 2025. This increased demand for high-end stays comes from corporate executives, affluent travelers, and expatriates who want more than a short-term residence. Luxury extended stays provide a distinctive blend of comfort, convenience, and sophistication that makes them a desirable option for business travelers on extended trips or relocations. These properties offer a variety of upscale amenities including gourmet kitchens, expansive lounges, high-end furnishings, and personalized concierge services that add to the guest experience.
A prime example of this trend is Cheval Residences in London's upmarket Knightsbridge. The apartments provide spacious, luxuriously designed rooms with fully functional kitchens, spacious living rooms, and tailor-made concierge services, exactly targeting high-net-worth individuals and business travelers. These rooms offer the privacy and autonomy of an apartment with the luxury amenities usually provided by upscale hotels, which makes it ideal for those requiring comfort as well as flexibility throughout their extended stay.
Another example is the Mandarin Oriental in London, which has added its luxury portfolio with serviced apartments to cater to wealthy travelers who need extended stays. The apartments feature customized amenities and include access to private hotel services, ranging from in-house cooks to personal attendants, allowing guests to have the best of home and hotel combined.
As businesses continue to prioritize sending high-level executives on international assignments, the demand for luxury extended stays in key cities like London is set to grow. These high-end accommodations not only offer the privacy and comfort of a home but also deliver the services and convenience that business professionals need, ensuring that the luxury extended stay segment will dominate and expand in the UK market in the years ahead.
Corporate professionals will play a significant role in the UK extended stay hotel industry, representing about 40% of the market in 2025. The growing demand for extended stays among business travelers is due to work-related relocations, training sessions, conferences, and project assignments, especially in major business centers such as London. These professionals need accommodations that are comfortable, functional, and convenient, and extended stay hotels are adapting to meet these demands.
One good example of this change is Residence Inn London, whose services have been adapted to accommodate business travelers through its "Work-from-Home" package. The package features fully functional kitchens, high-speed internet connectivity, and personal office space so corporate professionals can stay productive while appreciating the comfort and autonomy of a home-like setting. Situated close to major business centers, this category of accommodation allows for a great balance of work and leisure for people on long-term assignments.
Likewise, Staybridge Suites London-Canary Wharf serves corporate guests with spacious suites that have dedicated workstations, ergonomic desks, and contemporary amenities like fully-equipped kitchens. Located in one of London's most active finance districts, this hotel is perfect for businesspeople who want a comfortable, convenient living space for extended periods. It enables them to get into a home-like environment while being within a short distance from their office, which improves both work-life balance and productivity.
As remote working becomes increasingly popular, corporate professionals will continue to be the driving revenue group in the UK extended stay market. As businesses move towards flexible work arrangements, professionals seek properties that can meet both business and personal requirements. The extended stay hotel sector is ideally suited to accommodate this new kind of workforce with personal services and facilities that allow corporate travelers to work effectively in a relaxed and home-like atmosphere.
The UK extended stay hotel industry is fairly fragmented, with industry leaders such as Staycity Group, SACO, IHG Hotels & Resorts commanding large market shares. Regional players also serve niche segments, including long-term stays for expatriates or professionals on relocation assignments.
2025 Market Share of UK Extended Stay Hotel Players
Leading players include Residence Inn by Staycity Group, SACO, IHG Hotels & Resorts followed by regional operators offering specialized long-term accommodation services.
The UK extended stay hotel market is expected to grow at a CAGR of 4.6% from 2025 to 2035.
The market is projected to reach USD 4.9 billion by 2035.
Key drivers include remote work trends, corporate relocations, and the rising demand for self-sufficient and long-term accommodations.
Key players include Residence Inn by Staycity Group, SACO, IHG Hotels & Resorts, and regional extended stay providers offering tailored long-term services.
The industry is segmented into Economy Range, Middle Range, and Luxury Range.
The market is segmented into Travelers, Corporate Professionals, Management Trainees, and Expatriates.
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 18 - 25 Years, 26 - 35 Years, 36 - 45 Years, 46 - 55 Years, and 56 - 65 Years.
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UK Extended Stay Hotel Market
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