BOOM: The Extended Stay Hotel
Street Fight is always looking out for MULO (multi-location) categories on the upswing. The hospitality industry is now complex and growing. Currently projected to reach $443 billion worldwide this year, it comprises every variation of places to sleep and play — from the luxury hotel and resort to the trusted roadside motel brand.
One category that seems to be having a “moment” is the extended say hotel.
Three main reasons people stay at these places are:
- Housing transition: People who are in-between homes
- Business assignments: Companies will often put employees up at extended-stay properties when they will not be permanently assigned to a location
- Leisure travel: Although less common than the first two categories, today’s consumer lifestyles and remote work often require consumers to have access to business services when on the road. Some guests may be traveling for long-term medical treatments and family care but need to stay connected to their workplaces.
The extended stay market is expected to reach $163 billion by 2033, making it an attractive category for many investors.
Like other overnight properties, the extended stay hotel must constantly evolve to meet consumers’ needs. In addition to in-room kitchenettes and spaces geared to working (wi-fi, desk chairs, outlets), some extended stay brands are communal spaces for lounging and meeting, wellness options, sustainability practices, and even nearby daycare options.
Because consumers are so dependent on reviews and online data, a website has even sprung up to review the various extended stay hotel and motel brands, meaning keeping amenities up-to-date and ensuring visitor satisfaction is more important than ever.
Among the top brands today are:
- Extended Stay America
- Hilton’s LivSmart Studios
- Hyatt Studios
- Wyndham’s Echo Suites
- Marriott’s StudioRes
Note that every major hotel or motel brand is now competing in the extended stay space, which means that brand name satisfaction from leisure travel can easily spill over to business travel choices. Some brands are co-locating different hospitality types within the same general area, getting a “lock” on the market and giving travelers price options within the parent brand.
Loyalty programs are a huge part of any lodging program these days. In addition to amenities and service, consumers make decisions based on accumulating points, which can then be applied to more stays or other travel—and business-related perks.
To learn more about MULO categories that are BOOMing (and BUSTing), be sure to continue to read trends here and join us at Street Fight LIVE in September!
