Hotel Development Extended Stay: Insights Into a Thriving Trend & Exciting Opportunities
01/31/2024

With new travel habits, people seeking out longer stays and exploring destinations more fully, Accor continues to lead the accelerating extended stay market with the industry’s most comprehensive extended stay portfolio, benefiting our owners, our guests, and Accor.

Anticipating the Evolving Landscape of Travel Trends

Today, the global extended stay hotel market is valued at approximately US$54.5 billion and set to reach US$166.5 billion by 2032 (Extended Stay Hotel Market Outlook 2023-2033 by Future Market Insights), with growing demand from cities such as Riyadh, London and Singapore.

As remote and hybrid work models come into their own, more and more professional travelers are mixing business and leisure – and looking to stay at their destination for longer. Many guests are also keen to explore the destination more fully and connect with the local community, as highlighted in Accor’s “Hospitality Ahead” report and exclusive survey of 15,000 travelers across seven countries identifying the desire to “seek & savor” as the top-ranked desired emotional experience in travel.

The demand for extended stay properties is soaring, creating opportunities for Accor to facilitate and enrich new hybrid lifestyles. Serviced apartments and extended stay offer guests all the flexibility and home comforts they need, mixing the privacy and comfort of a home with the convenience of hotel services. Accor is anticipating new travel trends and continues to lead markets where the Group has established deep roots, strong relationships, and a powerful presence, such as in Europe, the Middle East and Asia-Pacific.

Aligning with demand, Accor has built on our expertise in hotel accommodation to innovate in this sector. Now one of the global leaders in extended stay, we offer an unparalleled portfolio of globally recognized extended stay brands.

Camil Yazbeck Global Chief Development Officer - Premium, Midscale & Economy

Learn more in the recent LinkedIn Tribune of Camil Yazbeck:

Expanding Potential for All: Owners, Guests, and Accor

With extended stay, owners can optimize their profitability and generate additional revenue.

This growth isn't just in terms of volume: with lower operational costs and higher profitability, extended stay properties are not just resilient but are also ripe for revenue optimization.

Camil Yazbeck Global Chief Development Officer - Premium, Midscale & Economy

With over 380 extended stay hotels and 14 global brands from Economy to Luxury, Accor is the largest extended stay operator outside the US and offers the most comprehensive portfolio of solutions. Ranging from Luxury to Economy, the Group offers extended stays tailored for every kind of traveler - encompassing brands such as Pullman Living, Novotel Living, Adagio and Mercure Living, unique choice of remarkable luxury brand serviced residences, as well as the only major hotel Group with extended stay offerings in the lifestyle category. For example, by re-designing dining experiences as Social Hubs as done by Novotel Living.

Accor is the world’s second largest luxury hotel operator with prestigious and world-famous brands, such as Raffles, Fairmont, Sofitel and MGallery, and a diverse portfolio of extended stay, serviced apartment properties, and branded residences, leveraged to create a truly exceptional extended stay experience.

Agnès Roquefort Global Chief Development Officer - Luxury & Lifestyle

With such a wide portfolio, Accor can connect development partners with the right brand for their market and investment objectives, and with more and more project integrated into mixed-use developments. Accor’s fully integrated hospitality ecosystem enables combining a variety of elements into a development, including hotel accommodations, branded residences, lively food & beverage offerings, coworking and wellness. Bringing these elements together to meet market demand contributes to optimizing revenue opportunities and diversifying investment risk.

Investing in extended stay is a strategic move to capitalize on a market trend that shows no signs of slowing down. Whether as a standalone or a combo project, or as part of a mixed-use development, extended stay is a future-proof investment that promises growth and resilience.

Camil Yazbeck Chief Development Officer - Premium, Midscale & Economy

Building Tomorrow’s Hospitality

As the extended stay sector thrives – and looks set to reach new heights – we continue to reinforce our leadership, building on Accor’s innovative spirit to answer a growing demand and anticipate the needs of travelers, owners and partners, to reinforce our leadership in this segment, capturing opportunities and shaping the future of hospitality.

To find out more about market trends and enduring shifts impacting the hospitality industry, as well as ways to leverage these transformations into opportunities for growth and innovation, discover our award-winning “From Change to Opportunity” content series:

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