Why Extended Stay Hotels Aren't in Just a Hype Cycle
Skift Take
A few plausible reasons explain why many investors and brands are checking into the extended-stay hotel category. The bottom line is that they expect to leave with suitcases full of profits for a long time.
Early Check-In
Editor’s Note: Skift Senior Hospitality Editor Sean O’Neill brings readers exclusive reporting and insights into hotel deals and development, and how those trends are making an impact across the travel industry.Extended-stay hotels are a hot topic lately.
This year Blackstone and Starwood Capital bought 111 WoodSpring Suites hotels for $1.5 billion. Last year, the same two investment firms took over the mid-priced chain Extended Stay America in a $6 billion deal.During the pandemic, extended stay, particularly in the economy segment, proved more resilient than other hotel categories. Giant hotel groups like Marriott have been reaffirming their commitment to the category, which includes hotels whose rooms have fully equipped kitchens and typically have larger rooms and access to laundry machines.You might suspect extended stay hotels are in a hype cycle that can't last.
After all, extended-stay hotels have been popular in the past couple of years for pandemic-related reasons, such as social distancing concerns and the demand for traveling nurses. But those factors are fading.Vacation rentals and short-term rentals seem to be swelling the supply of place