Extended Stay Hotels Market Overview
Product Overview and Scope of Extended Stay Hotels Market
An extended stay hotel, also known as a long-stay hotel or serviced apartment, is a type of accommodation that provides amenities and services similar to those of traditional hotels but is designed for longer stays. These establishments are particularly popular among business travelers, relocating individuals or families, and tourists who plan to stay in a location for an extended period of time, typically more than a week.
Extended stay hotels provide amenities such as free Wi-Fi, flat-screen TVs, laundry facilities, and sometimes fitness centers or swimming pools. Some may also offer housekeeping services on a less frequent basis compared to traditional hotels, as guests often prefer less frequent disruptions during their long stays.
The presence of a kitchenette or kitchen can be particularly advantageous for guests who want to prepare their own meals. This can save money and offer a more comfortable and homelike experience.
The goal of extended stay hotels is to provide a more home-like experience for guests, combining the comfort and amenities of a hotel with the conveniences of an apartment.
Global Extended Stay Hotels Revenue Market by Region (2018-2030)
Extended Stay Hotels Market Revenue (USD Billion) Comparison by Region (2018-2030)
|
Regions |
2018 |
2022 |
2030 |
Market Share (%) 2030 |
CAGR (%) (2023-2030) |
|
North America |
xx |
xx |
xx |
xx% |
xx% |
|
Europe |
xx |
xx |
xx |
xx% |
xx% |
|
Asia Pacific |
xx |
xx |
xx |
xx% |
xx% |
|
Latin America |
xx |
xx |
xx |
xx% |
xx% |
|
Middle East & Africa |
xx |
xx |
xx |
xx% |
xx% |
|
Total |
xx |
42.40 |
xx |
xx% |
6.31% |
Market Drivers
Expanding Tourism and Leisure Travel drives the Global Extended Stay Hotel Market
Expanding tourism and leisure travel can indeed serve as a driver of the global extended stay hotel market. The increasing demand for travel experiences and the changing preferences of travelers have contributed to the growth of extended stay hotels as a preferred accommodation option.
As tourists seek more immersive and in-depth travel experiences, they often stay in a destination for longer periods to explore its culture, attractions, and activities. Extended stay hotels cater to this trend by providing comfortable and spacious accommodations that are suitable for stays ranging from a week to several months.
Travelers who plan to stay in a location for an extended period seek accommodations that offer the comfort and convenience of a home away from home. Extended stay hotels provide larger suites with separate living, sleeping, and kitchen areas, creating a homelike environment that appeals to leisure travelers.
Extended stay hotels often offer more competitive rates for longer stays compared to traditional hotels. As leisure travelers look for cost-effective options, the affordability of extended stay hotels becomes appealing, especially when considering the amenities and space offered.
Travelers on extended leisure trips may prefer the amenities provided by extended stay hotels, such as kitchenettes or full kitchens. This allows them to prepare their own meals and maintain a routine while exploring a destination for an extended period.
Families and groups of leisure travelers often prefer accommodations with more space to accommodate everyone comfortably. Extended stay hotels with larger suites and multiple bedrooms can cater to this demand, making them a suitable option for family vacations.
Some leisure travelers choose to explore multiple destinations within a region or country during an extended trip. Extended stay hotels allow them to set up a base in one location while easily accessing nearby attractions, contributing to their appeal.
Extended stay hotels offer flexibility in terms of check-in and check-out dates, making them suitable for travelers with varying schedules and itineraries.
With the rise of remote work and digital nomadism, some leisure travelers combine work with leisure. Extended stay hotels provide suitable workspaces within the suites, catering to those who need to work while traveling.
Many leisure travelers aspire to experience a destination as a local rather than a tourist. Staying in an extended stay hotel in a residential area allows them to immerse themselves in the local culture and interact with the community.
As the extended stay hotel market evolves, it caters to different segments of leisure travelers. From budget-friendly options to luxury extended stay properties, travelers can choose accommodations that match their preferences and budgets.
The growing demand for extended stay hotels among leisure travelers aligns with their desire for comfort, flexibility, and authentic experiences. This trend has led to the development and expansion of extended stay hotel offerings worldwide, making them an important player in the global hospitality industry.
Market Restraints
Market Saturation hinders the market growth
• Economic Uncertainty poses significant challenge to the market
Opportunity
• Customized Experiences presents the market with new opportunities
Global Extended Stay Hotels Manufacturers Profiles/Analysis
Hilton
Hilton Basic Information, Manufacturing Base, Sales Area, and Competitors
|
Sr. No. |
Item |
Description |
|
1 |
Company Name |
Hilton |
|
2 |
Website |
www.hilton.com |
|
3 |
Established Date |
1919 |
|
4 |
Headquartered |
United States |
|
5 |
Market Position/ History |
In 1919, Conrad Hilton buys The Mobley, a hotel in Cisco. Over the next few years, he buys other Texas hotels. While bus ambitions. In 1925, Conrad Hilton opens the high-rise Dallas Hilton, the first hotel to carry the Hilton name. In 1946, Hilton Hotel Corporation has formed and filed to list on the NYSE. In 1949, Hilton International is born with the opening of Caribe Hilton in Rico. Hilton introduces Hilton HHonors, its guest loyalty program in 1987. In 1995, the first Hilton website has launched. Currently, the business has more than one million rooms worldwide and is known as one of the largest hospitality companies in the world. |
|
6 |
Sales Area |
Worldwide |
|
7 |
Ticker |
NYSE: HLT |
|
8 |
No. of Employees |
159,000+ |
|
9 |
Competitors |
|
|
10 |
CEO |
Christopher J. Nassetta |
|
11 |
Ownership Type |
Public |
|
12 |
Contact Information |
7930 Jones Branch Drive, McLean, VA 22102, USA Tel: 000 800 440 1071 |
Business Segment/ Overview:
Hilton is a global hospitality company. It operates a chain of luxury and full-service hotels and resorts, extended-stay suites, and focused-service hotels. The company offers lodging, food, boarding, restaurants, dining, and loyalty programs. Hilton is operating with a portfolio of 22 world-class brands comprising nearly 7,300 properties and more than 1.1 million rooms, in 123 countries and territories.
Its premier brand portfolio includes luxury hotel brands such as Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, and Conrad Hotels & Resorts; emerging lifestyle hotel brands which include Canopy by Hilton, Tempo by Hilton, and Motto by Hilton; full-service hotel brands like Signia by Hilton, Hilton Hotels & Resorts, Curio Collection by Hilton, DoubleTree by Hilton and Tapestry Collection by Hilton; focused service hotel brands such as Hilton Garden Inn, Hampton by Hilton and Tru by Hilton; all-suites hotel brands, Embassy Suites by Hilton, Homewood Suites by Hilton and Home2 Suites by Hilton; and timeshare brandthat includes Hilton Grand Vacations.
Extended Hotel Stay Product Types Specification
|
Product |
Product Description |
|
Home2 Suites |
Home2 Suites are perfect for extended stays that are provided with in-suite kitchens, plus free breakfast and WiFi. Home2 Suites also offer the great amenities including refreshing saline pools, outdoor areas, and combined fitness and laundry facilities. |
|
Project H3 |
Project H3 is well positioned to address the particular demands of the long-stay visitor, owing to its creative architecture, compelling value proposition for owners, and, of course, the hospitality staff members provide every day. The product gives an interesting investment alternative for developers wishing to diversify their portfolio under the Hilton name, giving guests a solid and stable base for the extended stay and enabling them to make the most of every day. It features: Deliberate Design: This product will completely rethink its fundamental design principles and provide all necessary facilities in a cozy, cozy, yet deliciously contemporary manner. The hotel's appealing facade, which combines warm wood tones with a modern farmhouse-inspired color scheme and subtle industrial accents, welcomes visitors. Outdoor patios are provided with grills, a community fire pit, and comfy seating to make guests feel at home. Spacious Apartment-Style Accommodations: The elegant suites' well-thought-out layouts, which effortlessly combine comfort and utility, provide four separate places for visitors to relax, work, cook, and recharge. Guests may easily enjoy the cleverly built room due to the ample storage space, effective closet design, and flexible, multi-purpose furnishings. This features a fully furnished kitchen with a full-sized refrigerator, dishwasher, microwave, two-burner range, and more, as well as a roomy bathroom layout that puts an emphasis on the facilities that visitors who stay for an extended period of time value most. Nontraditional Lobby Experience: Hilton has improved the extended stay guest experience with The Hive, a hyper-functional lobby that provides rapid access to all services. This unconventional lobby strikes the ideal blend of pleasant smiles and self-sufficiency during every guest's stay by being designed to be welcoming for visitors and operationally friendly for team members. For visitors seeking to get a fantastic cup of coffee, squeeze in a workout, or get their laundry started, the Hive lobby offers sight lines from the front desk to fitness, laundry, and a small retail market. |
Recent Developments:
|
Year |
Latest News |
|
August 2023 |
First Tempo by Hilton Debuts Today, Bringing Stylish New Lifestyle Brand to Times Square Hilton announced the launch of the 661-room Tempo by Hilton Times Square, the first hotel under the company's newest fashionable and modern lifestyle brand. The hotel meets the ever-changing demands of the tourist whose ambitious attitude asks for both periods of rest and inspiration. It is situated in TSX Broadway, a new 46-story skyscraper with innovative shops, cutting-edge entertainment venues, and the historic Palace Theatre. Highlights of the hotel include sweeping views of Times Square, a lively cocktail bar with a terrace, a cutting-edge fitness facility, and exclusive Tempo by Hilton Wellness Rooms with Peloton cycles. Tempo by Hilton Times Square is paving the way for a new era of Times Square hospitality as a component of the soon-to-open TSX Broadway. The hotel is situated on the busiest intersection in the Western Hemisphere, where 400,000 people pass by every day. |
|
July 2023 |
Hilton Expands Footprint in Japan with the Debut of Hilton Okinawa Miyako Island Resort The first Hilton resort on Miyako Island, Hilton Okinawa Miyako Island Resort, has been launched by Hilton. Miyako Island, located about 300 kilometers southwest of the main Okinawa Island, has grown in popularity as a result of its captivating natural beauty and distinctive cultural experiences. Miyako Island has become a well-liked vacation spot because to its stunning beaches, abundant marine life, and agreeable weather. A great addition to our region's flagship brand portfolio is Hilton Okinawa Miyako Island Resort, which puts us in a great position to usher in a new age of travel experiences. |
|
June 2023 |
Hilton Expands Network Effect in China with Signings Across Multiple Brand Categories In the first half of this year, Hilton announced several new signings in China, including Conrad Qingcheng Mountain, Hilton Shanghai City Centre, Hilton Shanghai Jing'an, Curio Collection by Hilton hotels in Yantai and Anji, Hilton Garden Inn Hangzhou Grand Canal, and Hilton Garden Inn Chengdu Chenghua. These facilities, which continue to develop across several brand categories, are well situated in historic cities, tourist destinations, resort communities, and health retreats. The brand portfolio of Hilton gives owners unmatched choices and solutions that take advantage of changing opportunities while generating steady returns amid constantly shifting market circumstances. They are concentrating on strategic brand deployment and organic development in China and throughout the whole global portfolio, and the solid signings from the first half of this year have reinforced owner trust in brands in the luxury, lifestyle, full service, and focused service categories. With 512 existing hotels in more than 170 locations and another 700 hotels under construction, Hilton dominates China's thriving hospitality sector. |
6.1.7 Business Strategy
Hilton's strategy focuses on acquiring, developing, and keeping the finest personnel in the industry, and the executive committee analyzes talent strategy and succession plans on a quarterly basis to assess existing and future workforce needs. It has concentrated on creating and maintaining a strong employee-centered culture that fosters communication, camaraderie, and trust among all staff, which subsequently results in happy hotel guests. Additionally, it takes into account investments in and acquisitions of other hotel or hospitality brands, businesses, buildings, or other assets that are strategic and complimentary. Additionally, it works in partnership with current or potential owners of managed or franchised hotels to seek these prospects. In many circumstances, the company is up against rivals who may be in possession of far more financial resources while vying for these possibilities.
Additionally, hospitality intermediates frequently use aggressive marketing techniques, such as spending a lot of money on television and internet advertising campaigns to direct customers to their websites. As a result, rather than developing brand loyalty to the Hilton brands and systems, customers may instead build it for the intermediaries' brands, websites, and reservation systems. Similar to that, it has strategic goals for growing its worldwide portfolio and fee-based business. Since the capital needed to build and maintain hotels is typically provided by the third-party owner of the hotel with whom it contracts to provide management services or license our IP, the company expands its business as it enters into new management and franchise contracts with little to no capital investment by them as the manager or franchisor.
Analysis
Strength
Strong Brand Portfolio
Hilton Honors program has a large and loyal member base
Focus on Innovation and Technology
Weakness
Relies heavily on franchising (~90%)
Data breach incidents cause penalty of 700,000 dollars
Opportunity
Expansion in Emerging Markets
Strategic Acquisitions and Partnerships
Innovation in customer services
Threats
Labor shortages could restrict the ability to operate properties or grow business
Data Security and Privacy Concerns
