Extended-Stay Hotel Boom Gets a Reality Check
Skift Take
While the extended-stay hotel boom may be more of a slow burn than a supernova, hotel brands with patience and deep pockets may find the long-term rewards to be substantial.
America's hotel companies have invested heavily in extended stays. Last year, Marriott, Hilton, Hyatt, and Wyndham all began rolling out brands to capture what they see as long-term demand.
They are wagering on a few trends: Uncle Sam's infrastructure splurge, the stubborn persistence of "bleisure" travel, and a housing crunch.
But the impact will not be felt nationally for at least 1.5 to 2 years, given the glacial pace of hotel development.
In the short term, interest in extended-stay hotels is moderating. As with any gold rush, the initial fervor gives way to a more measured reality. The opportunity is still significant, but the go-go days of the pandemic and its aftermath
