These 5 Hospitality Giants Are Investing In Extended Stay Travel
Some of the biggest players in the hospitality industry are getting into extended-stay travel in a very meaningful way. Airbnb recently partnered with 20 international cities to create digital nomad hubs and Marriot’s Homes and Villas line has continued to grow since 2019. The biggest names in hospitality are investing in extended stay travel. Here’s how.
1. Marriott
Marriott International announced plans to expand its affordable midscale extended stay accommodation segment with a new brand, currently referred to as Project MidX Studios, targeting the U.S. & Canada markets. The brand is aimed at delivering reasonably priced comfort for guests seeking extended-stay accommodations.
In collaboration with Concord Hospitality and Whitman Peterson, they plan to break ground on three Project MidX Studios, with more than 250 development opportunities under discussion. The new brand is designed to have a low cost-to-build and will be part of the Marriott Bonvoy loyalty platform, aiming to appeal to budget-conscious consumers.
"As consumers look for new, flexible accommodation solutions, we are thrilled to announce our plans to launch an affordable midscale extended stay offering to meet the needs of guests seeking long-term comforts at a moderate price point.”
-Anthony Capuan, Marriott International President and CEO
2. Hilton
Hilton is launching a new extended-stay brand—Project H3—for the $300 billion “workforce travel market” in the US. Positioned in the lower midscale segment, it offers a consistent and reliable foundation for extended stays, along with an investment opportunity for developers under the Hilton brand.
The design will reimagine core elements to provide essential amenities in a modern way, with features like warm wood tones and a modern farmhouse-inspired palette. The spacious, apartment-style accommodations are thoughtfully designed with distinct areas for rest, work, cooking, and refreshment. The hyper-functional lobby, known as The Hive, elevates the extended stay guest experience, providing easy access to all amenities and a welcoming environment.
3. Hyatt
Hyatt Hotels Corp. is introducing Hyatt Studios, marking its entrance into the upper-midscale lodging segment in the Americas and adding it as the 28th brand in its portfolio. With construction set to begin in 2023, more than 100 hotels are planned, with the first opening in 2024.
The creation of Hyatt Studios was driven by feedback from developers and operators to cater to primary, secondary, and tertiary markets with an extended-stay concept aimed at high-end guests. Alongside complementary grab-and-go breakfast and 24-hour markets, guestrooms will feature kitchen facilities. The brand aims to transcend traditional extended-stay options, offering guests a blend of studio apartment coziness with a creative, contemporary style characteristic of Hyatt.
“Amidst a sea of interchangeable extended-stay competitors, Hyatt Studios hotels will transcend dated notions of value-driven compromise by inviting guests to enjoy both the coziness of a studio apartment and the positive energy of being in a creative studio, all with the quality and contemporary style that is characteristic of Hyatt.”
-Amy Weinberg, Hyatt Senior Vice President, Loyalty, Brand Marketing & Consumer Insights
4. Wyndham
Wyndham Hotels & Resorts is launching "Project ECHO," a new economy extended stay hotel brand, targeting a segment that has seen robust growth. The company has awarded contracts for 50 new construction projects and expects to open its first hotel in 2023, targeting at least 300 U.S. hotels over the next decade. The Project ECHO prototype, designed with owner ROI in mind, will feature 124-room constructions with in-suite kitchenettes. This addition to Wyndham's portfolio aims to leverage the company's expertise in the economy segment, tapping into the resilience and demand of the extended-stay market.
5. Airbnb
Long stays of 28+ nights are emerging as a trend in the short-term rental industry, making up 21% of Airbnb's bookings in 2022. This shift is driven by the working nomad culture and the post-pandemic economic environment, creating opportunities for vacation rental hosts to offer extended stays.
Adopting a monthly stay model can help hosts maximize occupancy, reduce operational costs, and reach alternative guest markets such as remote workers. Airbnb provides specific cancellation policies and monthly payouts for extended-stay reservations, offering more protection and ease of payment for hosts, and enhancing their ability to cater to this growing market.
Conclusion
The surge in extended stay travel has ushered in new opportunities for industry giants, reshaping the travel and accommodation landscape. As demand continues to grow, the biggest names in hospitality are strategically positioning themselves to pioneer and prosper in this emergent segment, setting new standards for the future of travel.
