Midscale Extended Stay Hotels are a growing segment in the hospitality industry, offering the convenience and amenities of a hotel along with the comfort and flexibility of an extended stay. With new brands like Project H3 by Hilton, Hyatt Studios, and Marriott International’s StudioRes entering the market, interest has increased tenfold. This segment is outperforming others. Is now the time to get into this space? Read on.
The midscale, extended-stay segment is the nexus between hospitality and multifamily, and the streamlined operating model bodes well for the industry in the long term.
~ Mit Shah is CEO of Noble Investment Group
According to recent data, U.S. hotel developers have shown a greater inclination towards extended-stay properties than any other hotel type. Whether measured by the number of projects or the total number of rooms, extended-stay properties have consistently topped the charts. As reported by Lodging Econometrics, in the second quarter, the pipeline of extended-stay projects witnessed a significant 18% year-over-year growth, reaching 2,083 projects.
With these budget-friendly options gaining popularity, numerous new brands are entering the space and performing exceptionally well. Marriott, Hyatt, IHG, Hilton, and Paris-based Accor launched more affordable brands this year to better appeal to travelers at all price points.
As these hotel brands expand to the midscale hotel market, they introduce compelling possibilities. The introduction of new accommodation models opens fresh opportunities for commercial real estate professionals in related sectors such as retail and various stakeholders in the industry.
The hospitality industry has exciting opportunities ahead, and BASE4 is proud to be a part of it. We have the expertise, technology, and processes to guide clients through every stage of their project anywhere they are. We believe in a PRODUCT mindset—bringing standardization and manufacturing principles to the AEC industry. Our team is excited to be a part of the midscale extended-stay hotel trend. We are here to discuss the best way to build with a product-centered approach.