Understanding the Rise of Extended Stay Hotels and Industry Trends

The surge in extended stay hotel popularity is reshaping the hospitality industry. Recent data highlights that over 10% of the nation's hotel capacity now comprises extended stay properties, with many hospitality companies expanding into this sector. Notably, the number of rooms in this category has increased by approximately 115,000 since 2019, marking a significant recovery after setbacks like the 2009 bankruptcy of major brand Extended Stay, which later sold for $6 billion in 2021. Industry experts, including David Eisen, point out that the extended stay segment is outperforming the broader hospitality market, which has yet to fully rebound from the pandemic. Demand for these accommodations remains robust, partly fueled by workers involved in projects financed by the 2021 infrastructure bill. Furthermore, the category is far from homogeneous. It encompasses a range of options from luxury to budget accommodations, reflecting an industry that is diversifying beyond traditional hotel models. This evolution indicates a broader shift in how travelers seek long-term stays and how the hospitality landscape adapts to changing demands. This analysis underscores the importance of recog...