MARKET SEGMENTS
Time in the Sun
The first LivSmart Studios by Hilton opened in Tullahoma, Tenn., in July.
EXTENDED-STAY HOTELS ARE HERE FOR THE LONG HAUL. IT’ S WHY BRANDS ARE CROWDING IN.
By DAVID EISEN
T
he extended-stay hotel segment is still having its moment. In fact, its shine may have never been brighter. The asset class, characterized by long stays, from several days, to weeks, to months, and design elements, such as in-room kitchens and onsite laundry facilities, accounted for 611,000 rooms in the U. S. as of May 2025, which is more than 10 % of all room supply in the country. It is estimated that the segment will generate around $ 20 billion in revenue in 2025.
National brands like Homewood Suites, Residence Inn, Home2 Suites, WoodSpring Suites, Staybridge Suites, Suburban Extended Stay and Extended Stay America have operated in the segment for years and have recently been joined by extended-stay upstarts, including LivSmart Studios by Hilton, StudioRes by Marriott, Hyatt Studios and Echo Suites Extended Stay by Wyndham— all of which operate in the economy to midscale segments.
Extended-stay hotels are unique and distinct from traditional transient hotels, which fueled discussion during this past ExStay Conference ESLA Workshop outside Washington, D. C. While total U. S. lodging occupancy still lags pre-COVID levels, said Kristine Kacarab, senior director, enterprise sales for Kalibri, demand remains strong in the extended-stay segment, particularly in the lower-end of the market.
Extended-stay trades on both doom and cheer— a value option for vacationing families on a budget and traveling workforces, such as in construction, but also a need when there is family displacement, job loss, divorce or other intervening factors. During and after COVID, the segment outperformed.“ On an annualized basis,” said Mark Skinner, a partner at The Highland Group, which specifically studies the extended-stay market,“ demand has never declined for extended stay,” adding that the segment
64 hotelsmag. com Sept / Oct 2025