Extended Stay Hotels in the US: Market Size, Businesses & Forecast 2026

The extended-stay hotel industry in the US provides long-term lodging options equipped with home-like amenities such as fully functional kitchens and separate living spaces catering to multi-night travelers. The sector has demonstrated operational resilience, outperforming the broader lodging market in demand metrics with a total monthly room revenue of $1,690.65 million in March 2025 according to data compiled by The Highland Group. Driven by multi-family construction booms, remote work, and temporary corporate relocations, the industry is heavily shifting toward economy and mid-scale segment conversions to satisfy cost-conscious demand.

Industry snapshot

Key public data points

Historical & forecast

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What does the Extended Stay Hotels in the US industry cover?

The industry comprises hospitality establishments designed for guests requiring accommodations for consecutive nights or weeks rather than single nights. These properties feature physical infrastructures distinct from standard hotels, emphasizing in-suite kitchen appliances, self-service laundry facilities, and minimized daily housekeeping to reduce overhead costs.

• •Typically categorized into economy, mid-price, and upscale tiers based on Average Daily Rate (ADR) differentials.
• •Operates under a cost structure optimized for longer Average Length of Stay (ALOS) to maximize profit margins.
• •Properties are built with full kitchenettes or separate living areas to mirror multi-family residential setups.

Who operates in the industry and how is it structured?

The industry structure functions through a mix of corporate ownership, third-party management companies, and franchised networks. Major operators utilize diverse brand portfolios across price segments to target different customer demographics ranging from blue-collar construction crews to corporate executives.

• •Economy segments saw a 10.3% increase in room supply in early 2025, heavily driven by property conversions.
• •Mid-price and upscale segments account for the majority of absolute monthly revenues, netting over $1.5 billion combined in March 2025.
• •Operations favor lower staff-to-room ratios compared to full-service luxury hotels to maintain lower operational break-even points.

What drives demand in the industry?

Demand is largely insulated from standard tourism cycles, relying instead on industrial, infrastructure, and institutional catalysts. Corporate assignments, infrastructure projects, permanent relocation buffers, and emerging digital nomad preferences provide a continuous occupancy baseline.

• •Extended-stay monthly demand recorded positive growth in 27 out of 28 consecutive months leading into mid-2025.
• •The industry maintained a 12.3 percentage point occupancy premium over the general hotel market in March 2025.
• •Federal infrastructure funding acts as a direct driver by increasing long-term housing needs for traveling engineering and construction personnel.

Who are the notable companies in the industry?

The competitive space is dominated by diversified multinational lodging corporations that actively launch or acquire dedicated extended-stay sub-brands to capture market share. Competitors vie for corporate accounts and real estate footprints near major transit or industrial corridors.

• •Marriott International Inc. and Hilton Worldwide Holdings Inc. compete heavily across the midscale and upscale extended-stay brackets.
• •Choice Hotels International Inc. operates a prominent extended-stay portfolio including brands like WoodSpring Suites.
• •Wyndham Hotels & Resorts Inc. expands its sector footprint via mid-price options such as WaterWalk by Wyndham.
• •Hyatt Hotels Corporation and InterContinental Hotels Group PLC also maintain dedicated long-stay product lines nationwide.

What are the recent trends and outlook?

A prominent trend involves major operators rolling out or expanding dedicated extended-stay suite brands to counter rising construction costs. Current growth strategies heavily emphasize conversion of existing buildings rather than starting ground-up new builds due to macroeconomic financing constraints.

• •Total extended-stay room revenue experienced a 3.3% year-over-year expansion in March 2025.
• •The economy segment achieved the highest revenue growth among all tiers, surging 11.1% in March 2025 compared to March 2024.
• •Supply growth has stayed below its historic long-term average, logging 42 consecutive months of 4% or less supply expansion as of early 2025.

How is the industry regulated?

Establishments must comply with a complex layer of local zoning laws, transient occupancy taxes, and hospitality regulations. Extended-stay properties occasionally navigate unique legal thresholds where long-term stays transition a guest from a transient lodging patron to a tenant.

• •Stays extending beyond 30 consecutive days typically trigger local tenant rights laws and exempt guests from transient occupancy taxes.
• •Properties are subject to local municipal zoning codes that distinguish short-term commercial lodging from multi-family residential zoning.
• •Operators comply with Americans with Disabilities Act (ADA) requirements regarding accessible long-term suites and kitchen designs.

Government, statistical and trade sources used for this Claight analysis.

• The Highland Group US Extended-Stay Bulletin 2025 ·
• US Census Bureau North American Industry Classification System 2022 ·
• Extended Stay Lodging Association (ESLA) Industry Updates 2025 ·
• U.S. Securities and Exchange Commission (SEC) Public Company Filings