Hilton and Marriott bet big on extended stays as hospitality unpacks for the long haul

Wednesday, May 24, 2023 by Snacks
The laundry-on-vacation goldrush (Hilton)

The laundry-on-vacation goldrush (Hilton)

Putting down roots… The US’s two largest hotel chains, Marriott and Hilton, are launching extended-stay brands to tap into the growing market for longer bookings in apartment-style units. Extended-stay travel (20+ nights) has boomed since the remote-work shift gave employees greater flexibility. Now the hospitality industry is betting it’ll be a long-term moneymaker through economic ups and downs.

  • Forget the minibar: Hilton’s extended-stay rooms will feature kitchens with a full fridge, dishwasher, and cooktop. Lobbies will have markets for snacks and toiletries, and there’ll be shared laundry facilities.

  • Competing with rent: Marriott plans to price extended-stay rooms at $80/night, while Hilton looks to charge $100. The average US hotel room rate last year = $150/night.

  • Low vacancy: Extended-stay hotels had a 75% occupancy rate last year, up from 2021 and well above the overall hotel-occupancy rate of 63%. Last quarter, nearly a fifth of Airbnb's nights booked were for long-term stays.

Status: work from beach… Extended stays are no longer just for those relocating for a job or workers on temp assignments. As millions have disconnected from the 9-to-5 office life, blended business-leisure travel (#bleisure) has allowed for longer trips. Biggies like Hyatt, Wyndham, and Best Western parent BWH plan to give guests the local lifestyle with extended-stay chains. They’re hoping to attract restless WFHers fed up with the excessive cleaning fees, long chore lists, and rising rates on Airbnb.


You can’t rely on vacay mode… While the travel industry is enjoying huge summer demand, hotels are bracing for a potential downturn. Doubling down on the affordable extended-stay model can help them recession-proof. Plus, less guest turnover means lower staffing costs and higher margins from not changing sheets every day.

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