Hospitality
A Notable Shift in the Extended Stay Hotels Market is Poised to See More Growth with A Few Key Changes
Smaller markets are driving unexpected revenue gains for extended-stay properties as remote work reshapes guest expectations
Key takeaways
Smaller and secondary markets are emerging as unexpected revenue drivers for extended stay hotels.
Remote work is fundamentally changing guest expectations and booking behavior in the extended stay segment.
Strategic changes in amenities, pricing, and positioning could unlock additional growth opportunities for operators.
How can hotels adapt to the evolving demands of guests who seek more than just basic amenities during extended stays?
While the hotel industry saw economic downturns in 2020 and 2021, many brands today are adapting to market changes in the extended-stay hotel segment. This segment, which also saw a decline, particularly saw a surge in demand in Revenue Per Available Room. Smaller markets have been leading this increase. The surge was mostly from remote workers and infrastructure projects. This trend has been encouraging more brands to refine their models for profitability and to attract new guests, especially younger travelers and digital nomads. In order for hotels to get ahead of this new market, there are a few key changes that are essential to maintain and push for growth.
Stephanie Leger, a Hospitality Excellence Guru and the CEO of First Rate Hospitality, emphasized why transforming hotel spaces is vital to fostering a sense of community that enhances guest experiences that encourage extended stays.
"If you're a new build or undergoing renovations to enhance your amenities, one area you should definitely focus on is your lobby space, because it's where you bring guests together, whether they're here for business, leisure, or embracing the remote life work style," said Leger.
If you're a new build or undergoing renovations to enhance your amenities, one area you should definitely focus on is your lobby space, because it's where you bring guests together, whether they're here for business, leisure, or embracing the remote life work style.
— Stephanie Leger, CEO at First Rate Hospitality
About the author
For the last twenty years served in the hotel industry globally, including Ritz-Carlton, Mandarin Oriental, Forbes Travel Guide Inspector, AAA, and many others associated with the luxury hotel industry. Other areas of expertise include Spa, Food & Beverage, Recreation, and Casino Operations. <br/><br/> • Provided countless reviews of operational evaluations.<br/> • Trained service standards worldwide to the top hotels in the world.<br/> • Implemented strategic planning in various hotels to thrive in their market.<br/> • Assisted hotels during crises such as natural disasters, ZIKA, and the recession of 2008.<br/><br/> My passion for creating employee performance development and engagement has led to learning multiple cultural backgrounds.
