Dublin, July 12, 2024 (GLOBE NEWSWIRE) -- The "Extended Stay Hotel Global Market Opportunities and Strategies to 2033" report has been added to ResearchAndMarkets.com's offering.
The global extended stay hotel market reached a value of nearly $53.22 billion in 2023, having grown at a compound annual growth rate (CAGR) of 4.1% since 2018. The market is expected to grow from $53.22 billion in 2023 to $76.41 billion in 2028 at a rate of 7.5%. The market is then expected to grow at a CAGR of 8% from 2028 and reach $112.26 billion in 2033.
Growth in the historic period resulted from the increased disposable income per capita, rise in government and military contracts, increase in outdoor recreation activities and the rising number of businesses. Factors that negatively affected growth in the historic period included economic downturns. Going forward, the expansion in the tourism and travel industry, strong economic growth in emerging markets, increasing remote work culture, government initiatives and rising urbanization will drive the market. Factors that could hinder the growth of the extended stay hotel market in the future include strict regulations.
Where is the largest and fastest-growing market for extended stay hotel? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? This report answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider extended stay hotel market; and compares it with other markets.
Market Insights
The extended stay hotel market is segmented by type into economic, middle and luxury. The middle market was the largest segment of the extended stay hotel market segmented by type, accounting for 43.1% or $22.92 billion of the total in 2023. Going forward, the economic segment is expected to be the fastest growing segment in the extended stay hotel market segmented by type, at a CAGR of 8.7% during 2023-2028.
The extended stay hotel market is segmented by tourist type into domestic and international. The domestic market was the largest segment of the extended stay hotel market segmented by tourist type, accounting for 65.6% or $34.92 billion of the total in 2023. Going forward, the international segment is expected to be the fastest growing segment in the extended stay hotel market segmented by tourist type, at a CAGR of 8.5% during 2023-2028.
The extended stay hotel market is segmented by stay duration into weekly and long term. The long term market was the largest segment of the extended stay hotel market segmented by stay duration, accounting for 72.8% or $38.75 billion of the total in 2023. Going forward, the long term segment is expected to be the fastest growing segment in the extended stay hotel market segmented by stay duration, at a CAGR of 7.2% during 2023-2028.
The extended stay hotel market is segmented by booking channel into online, on phone and in-person. The online market was the largest segment of the extended stay hotel market segmented by booking channel, accounting for 73.3% or $39.01 billion of the total in 2023. Going forward, the online segment is expected to be the fastest growing segment in the extended stay hotel market segmented by booking channel, at a CAGR of 7.9% during 2023-2028.
The extended stay hotel market is segmented by application into travelers, business customers, trainers and trainees, government and army staff and other applications. The travelers market was the largest segment of the extended stay hotel market segmented by application, accounting for 46.5% or $24.74 billion of the total in 2023. Going forward, the business customers segment is expected to be the fastest growing segment in the extended stay hotel market segmented by application, at a CAGR of 8.4% during 2023-2028.
North America was the largest region in the extended stay hotel market, accounting for 43.1% or $22.93 billion of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the extended stay hotel market will be Asia-Pacific and South America, where growth will be at CAGRs of 10.5% and 9.3% respectively. These will be followed by Western Europe and the Middle East, where the markets are expected to grow at CAGRs of 7.6% and 7.2% respectively.
The global extended stay hotel market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 12.18% of the total market in 2022. Marriott International Inc. was the largest competitor with a 6.27% share of the market, followed by Accor SA with 1.79%, InterContinental Hotels Group plc with 1.21%, Hilton Worldwide Holdings Inc. with 0.54%, Wyndham Hotels & Resorts Inc. with 0.51%, Choice Hotels International Inc. with 0.51%, Extended-stay America Inc. with 0.48%, Hyatt Hotels Corporation with 0.37%, Sonesta International Hotels Corporation with 0.29% and The Ascott Limited with 0.20%.
The top opportunities in the extended stay hotel market segmented by type will arise in the middle segment, which will gain $9.75 billion of global annual sales by 2028. The top opportunities in the extended stay hotel market segmented by tourist type will arise in the domestic segment, which will gain $13.96 billion of global annual sales by 2028. The top opportunities in the extended stay hotel market segmented by application will arise in the travelers segment, which will gain $10.88 billion of global annual sales by 2028. The top opportunities in the extended stay hotel market segmented by stay duration will arise in the long term segment, which will gain $17.19 billion of global annual sales by 2028. The top opportunities in the extended stay hotel market segmented by booking channel will arise in the online segment, which will gain $17.99 billion of global annual sales by 2028. The extended stay hotel market size will gain the most in the USA at $5.19 billion.
Market-trend-based strategies for the extended stay hotel market include focus on launch of midscale extended-stay hotel category to offer a balance between affordability and quality amenities, introduction of online reservation websites to enhance convenience and streamline reservation processes and focus on AI-powered travel bots to streamline operations.
Player-adopted strategies in the extended stay hotel market include strategic partnerships to focus on improving business expertise and expand extended stay brand, expanding business expertise through service expansions to capture the growing market demand, expanding business presence through new product offerings with tailored amenities for stays, capturing the growing demand by offering apartment-style accommodations with tailored amenities for long-stay guests and strengthening business operations through new service developments.
To take advantage of the opportunities, the analyst recommends the extended stay hotel companies to focus on diversifying offerings with affordable midscale extended stay hotels, focus on online reservation platforms, focus on implementing ai-powered travel bots, focus on fastest-growing luxury segment, expand in emerging markets, continue to focus on developed markets, focus on online distribution channels, provide competitively priced offerings, focus on optimizing pricing strategies, focus on digital marketing channels, focus on strategic partnerships and affiliations, focus on targeting international tourists and focus on business customers for growth.
Markets Covered:
1) by Type: Economic; Middle; Luxury
2) by Stay Duration: Weekly; Long Term
3) by Tourist Type: Domestic; International
4) by Booking Channel: Online; on Phone; in-Person
5) by Application: Travelers; Business Customers; Trainers and Trainees; Government and Army Staff; Other Applications
Key Companies Mentioned: Marriott International Inc.; Accor SA; InterContinental Hotels Group plc; Hilton Worldwide Holdings Inc.; Wyndham Hotels & Resorts Inc.
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; extended stay hotel indicators comparison.
Data Segmentation: Country and regional historic and forecast data; market share of competitors; market segments.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 291 |
| Forecast Period | 2021-2031 |
| Estimated Market Value (USD) in 2021 | $53.22 Billion |
| Forecasted Market Value (USD) by 2031 | $112.26 Billion |
| Compound Annual Growth Rate | 7.7% |
| Regions Covered | Global |
A selection of other major companies mentioned in this report includes, but is not limited to:
- Choice Hotels International Inc.
- Extended-stay America Inc.
- Hyatt Hotels Corporation
- Sonesta International Hotels Corporation
- The Ascott Limited.
- Radisson Blue Hotels
- BTG-Jianguo Hotels & Resorts Co. Ltd.
- Guangdong (International) Hotel Management Holdings Ltd.
- Jinling Hotel Corporation, Ltd.
- Yum! Restaurants China
- Shanghai Jinjiang
- Soho House
- Synergy Global Housing LLC
- IHG Hotels & Resorts
- LivAway Suites
- Home2 Suites
- WaterWalk
- Sonder Holdings Inc.
- Kasa Living Inc
- Le Square Phillips
- Bungalow Hotel
- Zeus Living Inc.
- Ginosi Corporation
- Best Western International, Inc.
- Posadas Group
- AHI (Atlantica Hotels)
- Staybridge Suites
- Fraser Suites
- Tsogo Sun
- City Lodge Hotel Group
- Louvre Hotels Group
- Kasada Capital Management
For more information about this report visit https://www.researchandmarkets.com/r/rk9m2d
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