According to Future Market Insights, the apartment includes all sort of amenities and allow the user to perform all household activities such as cleaning, washing, etc.
The extended stay hotels market is estimated at USD 48.60 billion in 2022 and is projected to reach USD 132.40 billion by 2032, at a CAGR of 19.60% from 2022 to 2032.
The tourism industry is flourishing and making progress over a decade. Accommodation is one of the prominent factor in tourism industry. With rise in growth of tourism participants there is a rise in scarcity of tourist accommodation. Hence the hospitality industry has come up with modes of accommodation such as poshtels, hostels, rotels, boutique hotels etc. with an aim to serve every type of tourist. Extended stay is one of the modes of accommodation in tourism industry where a traveller is allowed to rent an apartment for his accommodation.
According to Future Market Insights, the apartment includes all sort of amenities and allow the user to perform all household activities such as cleaning, washing, etc. It has a dedicated kitchen that allow traveller to cook food of its own. The travellers can stay as long as they want and can checkout whenever they feel. Nowadays the extended stay hotels are compact and custom designed with modular kitchen, designer furniture and amenities.
The infrastructure is eco-friendlier and are based on themes. The user is allowed to stay for days, months or years. Lastly the extended stay hotels are affordable in respect to long term accommodation. Therefore, it attracts and encourage travellers to book extended stay hotels for a long term.
As such, the global extended stay hotel market is estimated to expand at a CAGR of over 19.60% throughout the forecast period of 2022-2032, to be valued at US$ 132.40 Bn by the end of 2032.
Key Takeaways from the Extended Stay Hotel Market Study
- In case of tourist type there will be high number of international tourist as well as domestic tourist to opt for extended stay hotel market. The international tourist and domestic travels travel for work, leisure and study purpose and extended stay hotels provide them a liberty to stay in their natural habitat and well-being the way they leave in their respective homes.
- In case of room range type there can be a high demand for economic rooms and moderate demand for medium rooms the reason being the economic rooms are highly affordable but middle range rooms are bit costlier than economic rooms but with more amenities and comfort whereas there will be least demand for luxury range rooms as they are as equal as hotel rooms with multiple amenities and additional kitchen but a lot costlier.
Impact of COVID-19 on the Market
Covid 19 had a massive impact on tourism industry and there was a worst fall of business and potential customers in hospitality industry. Due lack of opportunities and lack of demand in hospitality industry many hotels faced a tremendous loss whereas in post covid situations hotels continued to face lack of business due to the precautionary measures abide by government in various regions and the fear of getting infected discouraged the travellers to move in to the hotels.
Meanwhile it is expected in post pandemic situation the extended stay hotels will have a sustainable growth. The fundamentals of extended stay hotels allow travellers to stay comfortable like staying at home without any risky of getting infected by covid disease. Apart from this the extended stay hotel are budget friendly than hotels with limited restriction. Hence in post covid pandemic extended stay hotels will be a vital support for hospitality industry.
Who is winning?
Leading manufacturers of extended stay hotels market are focused on promotional strategies to acquire new customers, upgradations and technological development to provide better experience, and new merger strategies to improve efficiency have driven sales growth of extended stay hotels market globally.
Major players present in the extended stay hotels market are Hilton Worldwide, Hyatt Hotel, Choice Hotels International, Intercontinental Hotels Group (IHG), Marriot International, Wyndham Hotel Group, Holiday Inn, Extended Stay America, Candlewood Suits, Oyo Rooms, are among others.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.