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A model of
RESILIENCE
HOW THE EXTENDED STAY SEGMENT IS THRIVING AMID THE PANDEMIC
home away from home . This is what guests have come to expect when they book at an extended stay hotel , whether for a week , a Amonth , 6 months , or more . This year , more than ever ,
the mid-priced extended stay hotel segment is providing a haven for essential business travelers , students , frontline healthcare workers , government and military personnel , and families needing housing solutions during transitional life moments .
In fact , one such company – Extended Stay America – is the only major hotel brand to remain 100 % open since the beginning of the pandemic , hosting upwards of 70,000 guests each night on average .
While the industry average for hotel occupancy lands around 45 %, Extended Stay America is operating at an impressive 73 % occupancy rate this year-to-date , indicating a business model poised to weather turbulent times , with the ability to meet the evolving needs of guests seeking flexibility along with comfort and care .
A key factor in Extended Stay America ’ s recent growth and success lies within its ability to provide guests with a range of accommodation options , affordable prices , and more control over their stays . This is especially evident as people are placing an increased value on health and hygiene , to which Extended Stay America has answered with new measures like STAYconfident , a comprehensive program aimed at the overall wellbeing of its associates and guests with enhanced offerings , cleaning protocols , and more generous discounts to alleviate the financial burden created by COVID-19 .
Another key pillar of the Extended Stay America brand is its vast array of amenities that allow for self-sufficiency , including fully equipped kitchens in every room , on-site guest laundry , fast and free in-room wi-fi , premium television and pet-friendly offerings – further underpinning the residence-like environments . And , uniquely , extended stay hotels are not designed to rely upon revenue from banquet and conference business , so the recent halt of such group gatherings has not impacted these properties the way it has for traditional hotel models .
As Extended Stay America continues to evolve , it looks to target other market segments to support the need for short-term housing . Among these focuses are providing off-campus lodging for university students and staff navigating the challenges and uncertainties associated with COVID-19 . Already , 23 universities in 10 states across the country have partnered with Extended Stay America . With no binding long-term lease agreements , no security deposits , and no cleaning fees , it presents a stress-free lodging solution nearby campuses .
Extended Stay America is primed to grow its footprint as it presents franchisees an attractive opportunity to join a highly regarded , nationally recognized organization amidst a period of unprecedented growth . Notable selling points include its margins , a streamlined operating model that delivers an optimal balance of services , amenities and staff , and a simple fee structure .
Further , Extended Stay America opened six new hotels in the first six months after the pandemic began , with three more slated to open by year ’ s end , and four in the pipeline for Q1 2021 .
Month after month , Extended Stay America is outpacing the industry despite challenging economic conditions and an overall decline in travel demand . The brand projects continued momentum in the months and years to come , all while honoring its mission to provide a safe place at a great value for people who are building a better future for themselves and their families .