Skift Take
Sign of the times: still cautious on spending, but still want affordable luxury and space. Hence extended stays have the staying power, especially beyond business travelers.
Suddenly, the talk about extended stays brands as a booming category is everywhere. And for good reason: the category is booming amidst a general uptick in the certain sectors of hospitality category. The extended stays have a more value-for-money-though-with-upscale-amenities proposition and in these still-austere-but-coming-out-of-it times fit the bill.
STR Data: Extended-stay hotel average daily rate grew 7.2% in each of the first two quarters in 2012. This is considerably faster than the 4.4% gain the overall hotel industry reported for the first half of the year.
Marriott: Marriott says its extended-stay portfolio now accounts for one-third of the company’s North American development pipeline. Residence Inn by Marriott and TownePlace Suites by Marriott lead the U.S. market in this segment and have a combined pipeline of more than 180 hotels under development, including 140 new unit openings planned by 2015. Internationally, extended-stay demand is rising with Marriott Executive Apartments, located wholly outside of the U.S., expecting nearly a 50 percent increase in hotel distribution by 2016.
Best Western: Best Western International is looking to formally break into the extended-stay segment. The Phoenix-based membership organization has developed a preliminary prototype that includes extended-stay rooms as part of the mix.
NYT’s Joe Sharkey, in praise of extended stays: The extended-stay niche was once regarded as a kind of afterthought. But in recent years, it’s become one of the best performers in the hotel industry, as some business trips become longer and more travelers and corporate managers choose value and convenience over flash.
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