Everyone Loves a Kitchen: The Changing Face of Extended Stay

Dan Reeder, Director of Revenue Management, Hilton, HSMAI Revenue Optimization Advisory Board Member 

Extended stay hotels are experiencing a dynamic shift, reflecting changes in travel trends, sustainability demands, and technological advancements. I recently led a discussion on the topic with the HSMAI Revenue Optimization Advisory Board and we delved into the challenges and opportunities this sector faces.  

Adapting to the Changing Travel Landscape 

Extended stay hotels are uniquely positioned to cater to a diverse array of travelers, from business visitors to families seeking longer accommodations. This could involve diversifying offerings to appeal to different traveler segments, such as providing more home-like amenities or flexible space for work and relaxation. 

Embracing Sustainability 

Sustainability is no longer a choice but a necessity. With 80% of guests prioritizing eco-friendliness, extended stay hotels must incorporate sustainable practices. This could include upgrades such as: energy-efficient appliances, electric car charging stations, and bicycle rentals.  

Staying Competitive 

In the face of competition from short term rentals, extended stay hotels need to emphasize their unique selling points. Celebrating strengths such as consistency in service, safety, and the comfort of a home-like environment can set them apart. Additionally, offering flexibility in services, like guest-led room turnover, caters to the modern traveler’s desire for personalized experiences. 

Leveraging Technology 

The impact of technology on extended stay hotels is significant, especially in areas like revenue management. Adapting technology to support various lengths of stay, ensuring seamless connectivity, and providing digital conveniences can enhance guest experiences and operational efficiency. 

The Economics of Extended Stays 

Economy extended stay brands are targeting the same business segment, emphasizing cost-efficiency. The lower turnover of rooms in extended stays leads to reduced operational costs, making this model financially attractive for both operators and guests. 

The Developer’s Perspective 

For developers, the extended stay model can be an initial step before transitioning to more transient accommodations. This strategy allows for a gradual market entry, adapting to the specific needs of the location and traveler demographics. 

Read Further:  

• Extended Stay Brand: Why Every Hotel Company Wants One 
• A Look at the Extended-Stay Hotel Landscape 
• Extended Stay Hotels Continue to Gain in Popularity  

Questions to Consider:  

1. How will extended-stay hotel brands adapt to changing travel trends in the post-pandemic world? 
2. How will additional Extended Stay Brands impact nontraditional distribution channels that include Vacation Rentals and Corporate Housing. 
3. How will extended-stay hotels incorporate sustainable and eco-friendly practices in their operations in the future? 
4. Will extended stay hotel brands expand their offerings to cater to different traveler demographics or preferences? 
5. What role will technology play in shaping the future of extended stay hotel brands, such as automation and contactless services?