Extended Stay Accommodations Market Size and Share Analysis - Growth Trends and Forecasts (2026-2033)

Market Size and Trends

The Extended Stay Accommodations market is estimated to be valued at USD 56.8 billion in 2026 and is expected to reach USD 98.5 billion by 2033, growing at a compound annual growth rate (CAGR) of 7.4% from 2026 to 2033. This robust growth is driven by increasing demand from business travelers, long-term tourists, and remote workers seeking flexible, cost-effective lodging options with home-like amenities. The market expansion reflects a shift towards prolonged stays and integrated accommodation solutions.

Key trends shaping the Extended Stay Accommodations market include the rise of digital nomadism and hybrid work models, which are fueling demand for longer-term, fully furnished living spaces. Additionally, advancements in technology enabling seamless booking experiences and enhanced customer personalization are gaining traction. The market is also witnessing increased investment in sustainable and eco-friendly properties that appeal to environmentally conscious travelers. Together, these trends are transforming extended stay lodging into a preferred choice for diverse traveler segments globally.

Segmental Analysis:

By Accommodation Type: Serviced Apartments Lead Market Dynamics through Flexibility and Enhanced Guest Experience

In terms of By Accommodation Type, Serviced Apartments contribute the highest share of the extended stay accommodations market owing to their unique blend of comfort, convenience, and cost-effectiveness. These apartments provide a home-like environment with amenities such as fully equipped kitchens, spacious living areas, and separate sleeping quarters, which appeal to guests seeking longer stays without compromising on the comforts of home. Unlike traditional hotels, serviced apartments offer greater flexibility in terms of duration of stay and a more personalized guest experience. This flexibility supports the needs of diverse travelers including professionals on extended assignments, relocating families, and individuals preferring self-catering options.

Additionally, serviced apartments tend to be strategically located in urban centers and business districts, often close to corporate offices and transportation hubs, making them highly attractive for business travelers. The ability to accommodate groups or families, coupled with cost savings from meal preparation and laundry facilities, further drives their appeal. Moreover, the response to shifting consumer preferences toward spacious accommodations and privacy amid health and safety concerns has accelerated the demand for serviced apartments compared to other accommodation types. Operators in this segment are increasingly adopting technology-driven solutions such as contactless check-in and digital concierge services, which enhance guest satisfaction and operational efficiency. Altogether, these factors underpin the leadership of serviced apartments in the accommodation type segment of the extended stay market.

By End User: Business Travelers Dominate Demand Through Growing Corporate Travel Needs

In terms of By End User, business travelers contribute the highest share of the extended stay accommodations market, propelled by the expanding scope of corporate travel and evolving work patterns. Business travelers require lodging that supports productivity, convenience, and comfort during extended trips often lasting weeks or months. Extended stay properties cater effectively to these demands by providing work-friendly environments such as high-speed internet, work desks, meeting spaces, and quiet surroundings. Additionally, these travelers benefit from amenities like flexible check-in/check-out, loyalty programs, and seamless booking processes that align with corporate travel policies.

The rise of remote working and hybrid work models has also influenced business travel patterns, with professionals frequently needing accommodation for projects, client meetings, training sessions, or interim work locations. Extended stay accommodations, especially those offering serviced apartments and corporate housing options, meet these requirements by creating a conducive living-meets-working environment, facilitating a better work-life balance. Cost efficiency is another key driver since long-term accommodation arrangements typically bring down overall travel expenses for companies compared to multiple short-term hotel stays. Furthermore, many corporations prioritize health and safety, preferring extended stay properties that offer greater privacy and reduce interaction with crowded hotel facilities.

The business traveler segment also benefits from partnerships between extended stay operators and large enterprises, travel management companies, and relocation firms that streamline booking and expense management, deepening the demand funnel. These factors collectively solidify business travelers as dominant contributors to the market's growth and ongoing evolution.

By Booking Channel: Online Travel Agencies Drive Accessibility and Consumer Convenience

In terms of By Booking Channel, Online Travel Agencies (OTAs) command the highest share of the extended stay accommodations market, fueled by their ability to offer unmatched accessibility, convenience, and expansive inventory choices to consumers worldwide. OTAs serve as the primary interface for modern travelers searching for, comparing, and securing accommodation options across multiple providers in a seamless and transparent manner. The online platform's user-friendly interfaces, detailed property information, verified guest reviews, and competitive pricing empower travelers to make well-informed decisions tailored to their extended stay needs.

The surge in digital penetration and mobile device usage intensifies OTA market dominance as guests increasingly prefer to plan and book travel independently and instantly. Moreover, OTAs integrate advanced technologies such as dynamic pricing algorithms, personalized recommendations, and flexible cancellation policies which resonate strongly with extended stay travelers who often seek adaptable arrangements given their longer booking windows. Extended stay operators benefit from OTA partnerships by amplifying their reach across global and regional markets without significant investment in standalone marketing infrastructure.

Furthermore, OTAs enhance traveler confidence by providing secure payment gateways, customer support, and dispute resolution mechanisms, crucial factors for these higher-spend and longer-duration bookings. Collaborations between OTAs and extended stay accommodation providers have also facilitated bundled offerings and loyalty program integrations that encourage repeat business and customer retention. Taken together, the widespread consumer adoption of online travel agencies as a preferred booking channel greatly accelerates market penetration and growth for the extended stay accommodation segment.

Regional Insights:

Dominating Region: North America

In North America, the dominance in the Extended Stay Accommodations market is driven by a mature hospitality ecosystem, highly developed infrastructure, and a strong presence of multinational corporations. The region benefits from robust business travel, long-term relocation trends, and a preference among corporate travelers for flexible lodging solutions that blend hotel comforts with home-like amenities. Government policies supporting tourism and business mobility, alongside favorable real estate regulations, have encouraged investments in extended stay properties. Key industry players such as Marriott International with its Residence Inn brand, Hilton's Homewood Suites, and Extended Stay America have been instrumental in shaping the market landscape by offering diverse accommodation options catering to both business and leisure travelers. Their expansive network and consistent innovation in service offerings help maintain North America's leadership.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific exhibits the fastest growth in the Extended Stay Accommodations market, underpinned by rapid urbanization, increasing intra-regional business activities, and a rising number of expatriates. Countries in this region are experiencing considerable economic development, leading to greater demand for long-term residency options for corporate clients and tourists. Government initiatives to boost tourism and foreign investment have facilitated the growth of hospitality infrastructure. Additionally, the rise of digital nomads and remote workers in countries such as India, China, and Southeast Asian nations has further contributed to the uptake of extended stay lodging. Prominent hospitality chains like OYO Rooms, Ascott Limited, and Frasers Hospitality are aggressively expanding their footprint in this region, embracing technology and localized service models to capture diverse customer segments.

Extended Stay Accommodations Market Outlook for Key Countries

United States

The United States' market continues to lead, driven by its extensive network of corporate headquarters and a high volume of business travelers seeking flexible lodging solutions. Major players like Extended Stay America and Marriott's Residence Inn have established widespread operations, focusing on enhancing guest experience with amenities such as kitchenettes and laundry facilities. The country's regulatory environment supports large-scale hospitality investments, and ongoing innovations in loyalty programs and digital check-in services are further strengthening market competitiveness.

China

China's market is rapidly evolving with significant government encouragement of domestic and international tourism as part of broader economic reforms. The burgeoning middle class and expansion of multinational enterprises contribute to rising demand for extended stay accommodations. Hospitality groups like Ascott and Marriott are expanding aggressively, capitalizing on urban metro hubs such as Shanghai and Beijing. In addition, local players are innovating in service delivery and integrating smart technologies to cater to tech-savvy travelers and corporate clients.

India

India's extended stay market has seen dynamic expansion, fueled by rapid urbanization and a booming IT and services sector that necessitates long-term lodging solutions for professionals and visiting employees. Government initiatives promoting tourism and ease of doing business have attracted international hotel chains and supported domestic brands like OYO Rooms in developing extended stay properties. The infusion of technology-driven booking platforms and tailored hospitality offerings positions India as a highly competitive and rapidly developing market.

Germany

Germany remains one of Europe's most stable markets for extended stay accommodations, favored by its strong industrial base and steady business travel demand. The presence of multinational corporations and trade fairs in cities such as Frankfurt and Munich ensures year-round demand. European hospitality brands like Motel One and international chains including Accor have a significant presence, focusing on sustainability and efficiency in extended stay operations, aligning with the growing consumer preference for eco-conscious travel options.

Brazil

Brazil's market is emerging with growing business hubs like São Paulo and Rio de Janeiro fostering demand for extended stay accommodations amid increasing foreign direct investment and international business activity. While the hospitality sector faces challenges from fluctuating economic conditions, both global chains such as Marriott's Element and regional operators are expanding offerings to capture extended stay clientele, emphasizing affordability and comprehensive amenities that meet local market needs. Government incentives aimed at tourism growth further support this sector's development.

Market Report Scope

Market Segmentation

Accommodation Type Insights (Revenue, USD, 2021 - 2033)

• Serviced Apartments
• Extended Stay Hotels
• Corporate Housing
• Others

End User Insights (Revenue, USD, 2021 - 2033)

• Business Travelers
• Leisure Travelers
• Relocation and Mobility
• Government Employees
• Others

Booking Channel Insights (Revenue, USD, 2021 - 2033)

• Online Travel Agencies
• Direct Bookings
• Travel Management Companies
• Others

Regional Insights (Revenue, USD, 2021 - 2033)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• Aimbridge Hospitality
• Oakwood Worldwide
• Extended Stay America
• Marriott International
• Hilton Worldwide
• Staybridge Suites
• The Ascott Limited
• Oakwood Premier
• Blueground
• AKA Extended Stay
• Value Place
• BridgeStreet Global Hospitality
• Sonder
• NuStay
• Lyric
• AKA Amherst Hospitality
• Oyo Life