16 May The Rise of the Extended Stay Hotel – And What That Means for You
When you think “extended stay,” you probably think “business traveler.” We still do, even though we know better – there’s an undeniable attraction between the two, to say the least. Extended stay properties create home-like comfort for a business traveler that few other types of hotels can replicate, and business travelers often travel in crews – which boosts occupancy for the hotel. Most hotel groups have strategically placed an extended stay within their portfolio of hotel brands, and there’s no better time than the present to capitalize on their late popularity.
One of the extended stay’s biggest bragging points are their full kitchens, which usually includes a kitchen starter kit with dinnerware, pots, and pans. Naturally, budget-conscious families with a limited food budget flock to hotels with kitchens, as do sports teams or similar small groups. Much to our surprise, we’re now seeing couples, solo travelers, and leisure travelers of all types (including pets!) roll into extended stay properties: Other perks that all travelers love include their more lenient pet policies and attention to cleanliness. In addition, most customers expect Wi-Fi in a hotel geared to longer stays, so they are almost guaranteed to have it available.
This is the part that might surprise you: The average stopover for an extended stay is just a few days now, not a month or a couple weeks. So we can see now how this hotel group could capture travelers of all categories and answer their needs. These hotels are rising to the occasion by slowly but surely creeping into urban locations. According to Diane Mayer, VP and Global Brand Manager of Residence Inn by Marriott, “Ten years ago, you could count on one hand the number of urban properties, now we have over 50.”
“Demand is at a record high,” said Mark Skinner, partner at The Highland Group. “More people are staying at extended stay hotels in the U.S. today than there were as ever before but what’s also true of the overall hotel industry is that these extended stay hotels are seeing record revenues. Just to put a number it’s probably $11 billion in 2016, not including corporate apartments which would be $3 billion. For 2015, room revenue for extended stay hotels was close to $10 billion.”
With numbers this significant, we’re guessing someone reading has experienced this phenomenon in the hotel world. Have you stayed in an extended stay on a leisure travel trip, maybe even for just a few days? Tell us why you chose an extended stay hotel over a more conventional lodging option!Settle Down!