The USA extended stay hotel market is expected to experience strong growth over the next decade. It is projected to grow from an estimated USD 8.6 million in 2025 to USD 16.8 million by 2035, with a CAGR of 6.9% during the forecast period from 2025 to 2035. The demand for extended stay hotels is primarily driven by the rising popularity of long-term stays among business professionals, relocating individuals, and leisure travelers who prefer the convenience and affordability of these accommodations.
Market Overview
| Attribute | Value |
|---|---|
| Estimated USA Industry Size (2025E) | USD 8.6 million |
| Projected USA Value (2035F) | USD 16.8 million |
| Value-based CAGR (2025 to 2035) | 6.9% |
This increase in demand for extended stay hotels can be attributed to shifting work trends, including remote work and business travel, and the growing preference for cost-effective, self-sufficient accommodations. The expanding need for temporary housing solutions, such as for corporate relocations and medical tourism, further contributes to the market's expansion.
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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 USA Extended Stay Hotel Market (2024 to 2025)
It is expected that the USA extended stay hotel market will grow at a CAGR of 4.0% in the first half of 2024, with a slight increase to 4.2% in the second half. The growth rate is projected to further increase to 4.3% in H1 2025 and up to 4.5% in H2 2025, as the demand for both leisure and corporate long-term stays continues to rise.
| Category | Details |
|---|---|
| Market Value | The USA extended stay hotel industry is estimated to generate USD 8.1 billion in 2024, contributing 71% of North America’s extended stay market. |
| Domestic Market Share | Domestic tourists account for 65% of the market, with popular destinations such as Nashville (Tennessee), Dallas (Texas), and Orlando (Florida). |
| International Market Share | International visitors make up 35%, with key markets including Canadian and European travelers seeking affordable, extended accommodations for vacations or business. |
| Key Destinations | Renowned destinations include Nashville’s Music Row, Dallas’ Uptown area, and Orlando’s Lake Buena Vista district. |
| Economic Impact | The sector generates significant revenue through both short- and long-term stays, including extended business and medical travel, impacting local economies by creating jobs and supporting businesses. |
| Key Trends | Growth in remote work and hybrid work models, increasing preference for self-catering options, and enhanced amenities like kitchens and office spaces in extended stay hotels. |
| Top Travel Seasons | Peak travel seasons occur during the winter and summer months, as professionals and families alike seek temporary lodging for relocations or extended vacations. |
The USA extended stay hotel market remains a leading force in North America. Markets like Nashville's Music Row and Dallas' lively Uptown district are gaining popularity among business travelers as well as individuals looking for longer vacations. The demand for remote work facilities has led to an inclination toward longer stays, with more focus on offering amenities such as fully stocked kitchens, high-speed internet, and more flexible booking options.
Major trends driving the market are the growing popularity of workations (working holidays), the growing demand for independent lodging facilities, and a boom in corporate housing through relocation patterns. This is boosted by the comfort of extended stays at hotels that offer affordability along with flexibility.
| Date | Development & Details |
|---|---|
| Jan 2025 | Launch of New Work-Friendly Packages Marriott's Residence Inn unveiled a "Work-From-Anywhere" package, offering discounted long-term stays with access to ergonomic workstations and co-working spaces to attract remote professionals. |
| Dec 2024 | New Family Extended Stay Programs Staybridge Suites introduced a family-friendly long-stay program, featuring kid-centric amenities and recreational spaces, catering to traveling families looking for extended stays. |
| Nov 2024 | Opening of New All-Suite Hotel Homewood Suites in Phoenix opened a new location, offering all-suite accommodations with separate living and sleeping areas, designed for longer stays. The hotel is expected to attract both relocating professionals and international visitors. |
| Oct 2024 | Luxury Extended Stay Launch The Ritz-Carlton Hotel Group launched a luxury extended stay division, offering upscale, fully serviced apartments with bespoke concierge services for long-term guests. |
| Sept 2024 | Pet-Friendly Long-Term Stays TownePlace Suites by Marriott rolled out a new pet-friendly extended stay program, providing amenities such as dog parks and pet-sitting services, designed to attract traveling pet owners looking for extended stays. |
The USA extended stay hotel market is increasingly being driven by demand for luxury accommodations, which are expected to generate the highest revenue by 2025. Luxury extended stay rooms typically include high-end amenities such as fully equipped kitchens, premium furnishings, spacious living areas, and personalized concierge services. These rooms cater to high-end travelers, including corporate professionals, executives, and affluent tourists, who are seeking more than just a place to sleep for weeks or even months.
Cities such as New York, Los Angeles, and Miami are being transformed into hotspots for high-end extended stays, with an increasing number of corporate executives and high-end clients choosing high-end accommodations over regular hotels. An example is the Four Seasons Residences in New York, with large, fully serviced apartments with long-term living in mind, featuring personalized services to meet business requirements, including private offices, meeting rooms, and secure high-speed internet. The need for such accommodations is being driven by the growing number of companies that are spending more on employees on relocation assignments or long-term projects.
Additionally, tourists are looking for more individualized, home-like environments that are luxury and convenient. In Los Angeles, the AKA West Hollywood provides luxury extended stay accommodations with high-tech kitchens, comfortable living rooms, and proximity to business centers, which appeal to both corporate travelers and upscale visitors in search of a mix of comfort, style, and exclusivity. These extended stay hotels offer not only space but also privacy and comfort, which make them highly attractive to those who will be there for weeks at a time.
As businesses continue to allocate more funds for corporate relocations and as high-net-worth individuals look for upscale accommodations during their extended stays, the luxury extended stay segment is expected to maintain its momentum and dominate the market in the years to come.
Business travelers are set to capture a majority of the revenue for extended stay hotels by the year 2025, and this segment will account for around 45% of the market. These types of travelers typically need accommodations for long durations due to business moves, training courses, conferences, and executive positions. Extended stay hotels are responding more and more to the demands of business travelers by providing custom amenities that address both business efficiency and comfort.
For example, the Marriott Residence Inn’s "Work-From-Anywhere" package caters specifically to corporate clients. This package combines the flexibility of remote work with the comfort of a home-like environment, offering fully equipped kitchens, high-speed internet, and designated workspaces in each suite. Located near major corporate hubs in cities like San Francisco, Chicago, and Atlanta, Residence Inns make it convenient for business travelers to maintain productivity while staying close to their workplaces. Additionally, many extended stay hotels now feature meeting rooms and event spaces that can be reserved for presentations, client meetings, or team-building activities, ensuring that corporate professionals have everything they need for a successful trip.
As remote work continues to grow and companies increase their reliance on temporary assignments for employees, corporate professionals are seeking accommodations that combine business amenities with leisure options. Hotels like the Staybridge Suites in Houston cater to this demand by offering large suites with kitchenettes, fitness centers, and community spaces where professionals can relax or network after work hours. The growing trend of mixing business with leisure has led corporate professionals to consistently drive the highest revenue in the extended stay market.
As businesses continue to invest in relocation and extended assignment programs, the extended stay hotel market is seeing a significant shift, with corporate professionals increasingly representing the top revenue-generating segment in the industry.
The USA extended stay hotel market is moderately fragmented, with major players such as Extended Stay America, Inc, Marriott International, Hilton Worldwide, and IHG Hotels & Resorts, dominating the top market share. Regional players cater to specific customer needs, such as extended stays for relocating workers or tourists on long-term vacations.
2025 Market Share of USA Extended Stay Hotel Players
Leading players with notable market share include Extended Stay America, Inc, Marriott International, Hilton Worldwide, and IHG Hotels & Resorts, followed by several regional operators offering niche services.
The USA extended stay hotel market is expected to grow at a CAGR of 6.9% from 2025 to 2035.
The market is projected to reach USD 16.8 million by 2035.
The key drivers include the rise of remote work, the increasing demand for affordable long-term accommodations, and the growing trend of relocating professionals.
Key players include Extended Stay America, Inc, Marriott International, Hilton Worldwide, and IHG Hotels & Resorts and other regional extended stay hotels offering tailored 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.
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USA Extended Stay Hotel Market
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