Extended stay hotels are experiencing a dynamic shift, reflecting changes in travel trends, sustainability demands, and technological advancements. I recently led a discussion on the topic with the HSMAI Revenue Optimization Advisory Board and we delved into the challenges and opportunities this sector faces.

Adapting to the Changing Travel Landscape

Extended stay hotels are uniquely positioned to cater to a diverse array of travelers, from business visitors to families seeking longer accommodations. This could involve diversifying offerings to appeal to different traveler segments, such as providing more home-like amenities or flexible space for work and relaxation.

Embracing Sustainability

Sustainability is no longer a choice but a necessity. With 80% of guests prioritizing eco-friendliness, extended stay hotels must incorporate sustainable practices. This could include upgrades such as: energy-efficient appliances, electric car charging stations, and bicycle rentals.

Staying Competitive

In the face of competition from short term rentals, extended stay hotels need to emphasize their unique selling points. Celebrating strengths such as consistency in service, safety, and the comfort of a home-like environment can set them apart. Additionally, offering flexibility in services, like guest-led room turnover, caters to the modern traveler’s desire for personalized experiences.

Leveraging Technology

The impact of technology on extended stay hotels is significant, especially in areas like revenue management. Adapting technology to support various lengths of stay, ensuring seamless connectivity, and providing digital conveniences can enhance guest experiences and operational efficiency.

The Economics of Extended Stays

Economy extended stay brands are targeting the same business segment, emphasizing cost-efficiency. The lower turnover of rooms in extended stays leads to reduced operational costs, making this model financially attractive for both operators and guests.

The Developer’s Perspective

For developers, the extended stay model can be an initial step before transitioning to more transient accommodations. This strategy allows for a gradual market entry, adapting to the specific needs of the location and traveler demographics.

Read Further:

Questions to Consider:

  1. How will extended-stay hotel brands adapt to changing travel trends in the post-pandemic world?
  2. How will additional Extended Stay Brands impact nontraditional distribution channels that include Vacation Rentals and Corporate Housing.
  3. How will extended-stay hotels incorporate sustainable and eco-friendly practices in their operations in the future?
  4. Will extended stay hotel brands expand their offerings to cater to different traveler demographics or preferences?
  5. What role will technology play in shaping the future of extended stay hotel brands, such as automation and contactless services?

About HSMAI

The Hospitality Sales & Marketing Association International (HSMAI) is committed to growing business for hotels and their partners and is the industry's leading advocate for intelligent, sustainable hotel revenue growth. The association provides hotel professionals and their partners with tools, insights, and expertise to fuel sales, inspire marketing, and optimize revenue through programs such as the Marketing Strategy Conference, Adrian Awards, Sales Leader Forum, and HSMAI ROC. Founded in 1927, HSMAI is a membership organization comprising more than 5,000 members worldwide, with 40 chapters in the Americas Region. Connect with HSMAI at hsmai.org.

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