Industry Overview
Among the fastest growing industries in the USA is the Extended Stay Hotel. With more people traveling for business, relocating to different cities either because their job has changed or they are being transferred, or simply because they prefer to feel at home, more people stay at extended stay hotels.
The industry has taken the “Suite” idea and expanded on it. The extended stay operations provide for full service hotel amenities, a do-it-yourself type of accommodation or a half-way between the two set up. The idea took hold in the 1990s by Extended Stay America and has grown into one of the most popular forms of accommodation with almost every major hotel chain building their own versions. The extended stay hotel in Orlando is a family and business traveler’s favorite and in San Francisco extended stays are a business traveler’s first choice.
Industry Trends
According to the American Hotel & Lodging Association (AH&LA), the extended stay hotels are being built at a rapid pace. The association even has an education/ scholarship program for this type of accommodation. Future growth also depends on the Tourism Industry and its recovery but all signs indicate an overall increase in bookings for the extended stay hotels.
The extended stay hotels are generally found closer to the business heart of a city and provide access to local transportation or have available transportation on site. In the case of a businessman traveling on business to a tourist area, and traveling with his family, the hotels are close to attractions and provide transportation for both purposes.
Brands
Today, major competition for ESA includes Candlewood Hotel Company, Inc., Choice Hotels International Inc., Equity Inns, Marriott International, Inc., AmeriHost Inns, AmeriSuites and Suburban Lodges of America. There are many others entering the marketplace.