extended-stay hotels

Extended-Stay Hotel Boom a Win for Guests, Hotels, Builders Alike

What is an extended-stay hotel?

An extended-stay hotel is a type of accommodation that provides lodging for guests who need to stay longer than a few days but not as long as an entire month. These hotels typically offer more amenities and services than traditional short-term hotels, such as housekeeping services, fully equipped kitchens, living and dining areas, work stations with internet access, on-site laundry.

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What’s behind the rise of extended-stay hotels?

It’s not just a post-pandemic return to travel and work on the road. Cooling inflation and momentum from the infrastructure bill certainly don’t hurt, either.

Who stays at extended-stay hotels?

At the end of the day, anyone can stay at extended-stay hotels. And they do! But the offering of lodging designed for those who need a place to sleep for more than just a night or two exists for a reason. In the wake of the COVID-19 pandemic, remote work remains a preferred option for many, and it’s more available across sectors than it ever has been, at least when not during a global wave of infection.

Plus, people travel for work, and they always have. Some folks do it for sales, others go to conferences, and still others have jobs that keep their suitcases close at hand. All these people want and need accommodations that let them work on the road without jumping through hoops. No more leaving to work at a coffee shop or scrounging for food at inconvenient hours. Also, fewer noisy hallways and visiting soccer teams.

Instead, hotels that treat their guests like the busy, working professionals who they are.

How do extended-stay hotels accommodate remote workers?

The strategic aim of the extended-stay hotel is to cater to traveling professionals and remote workers by providing a comfortable, work-friendly home away from home.

Working guests want a nice work setting, but they don’t necessarily want to spend like they’re on vacation to have it. Extensive, scaleable planning and creative floor plans allow extended-stay hotels to integrate full kitchens into many of their spaces. That way, guests can live, work, and cook as if they’re in their own space. To make this feature worthwhile, a number of establishments have invested resources in “Grab ‘N Go”-style stations with prepared meals, snacks, and sometimes even raw ingredients. After all, what’s the point of a kitchen without anything to cook?!

In addition to welcome changes like separate living and working spaces, as well as co-working space, these extended-stay hotel brands have to offer high-speed internet. Whether it’s to hold virtual meetings, do work, or even plan your next travel, these establishments rely on keeping their guests connected on the road.

Why are extended-stay hotels cheaper to operate than full-service hotels?

Extended-stay hotels are a good example of what can happen when all parties in a marketplace find a way to serve each one’s interests. Remote workers, and workers on the road, need wallet- and work-friendly lodging for more than just an in-and-out trip. Or, for frequent in-and-out trips. Many brands make a point of sticking to consistent layouts and technologies to create a familiar feel for loyal guests.

As for hotels, the extended-stay model has a golden, steady-supply target demographic, one whose needs they can meet and even exceed without spending nearly as much as they do at full-service locations. The New York Times cited a study by Actabl, which found that full-service labor costs rose 24 percent in 2022 from the previous year, while extended-stay labor costs rose only 12 percent by comparison. So, at least in last year’s case, extended-stay labor costs grow half as fast as their full-service counterparts.

There’s another interest at stake here, too: that of builders, whether they be developers, architects, or contractors. Baked into the extended-stay model are scaleability and consistency. Not only should the experience be a seamless one for guests, but the design and construction of these hotels can and should also be efficient. As hotels roll out their extended-stay lines, builders ought to look for (and salivate at) the opportunity potentially to sign contracts for a number of what amount to cookie-cutter projects. When the same hotels want the same or similar hotel designs, ones with uniform, sustainable materials and amenities, they turn to builders they know and trust.

So, in essence, the reason extended-stay hotels can tout their affordability is that they’re a product of symbiotic relationships at multiple stages and on multiple levels. It’s another example of how workers’ and business’ mutual interests can overlap for great results.

Extended-stay hotel amenities and offerings

Some properties might feature communal spaces, like lounges and outdoor areas, where guests can interact and network. In contrast to short-term, full-service stays, extended-stay hotels prioritize practicality, cost-effectiveness, and a homey atmosphere, making them particularly appealing to those seeking an extended work-related stay without sacrificing comfort and convenience.


Extended-stay hotels save on housekeeping

Extended-stay hotels inadvertently land on a cost-cutting strategy while appealing to the needs of working guests. They save on labor costs, namely housekeeping, and actually interact less frequently with guests than do full-service hotel staff. Instead of daily laundry visits and room clean-ups, guests will often have access to communal laundry, and in some upscale establishments, in-unit laundry might be on the table.

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Extended-stay hotel construction pipeline

extended-stay hotel pipelineHotelMarketData from BuildCentral is tracking more than 600 extended-stay hotel projects in development, as of August 8, 2023. In total, those projects account for more than $5 billion of the national hotel construction pipeline. See the GEOSPEX cluster map above, where planned projects are in yellow and projects under construction are in purple.


Hotel Construction Market Leaders

Top Hotel Developers

Top Hotel Architects

Top Hotel Contractors

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