Extended-Stay Growth: Why Developers Keep Choosing This Model

Reading Time: 3 minutes

Extended-Stay Keeps Leading the Pack

Extended-stay brands now make up nearly four in ten new hotel projects nationwide — more than any other segment. According to HotelBusiness (citing Lodging Econometrics), there are currently 2,473 extended-stay projects in the pipeline, representing 252,000 rooms.

From active builds to upcoming developments, this model continues to dominate growth across all major hotel tiers — proving that long-stay demand and developer confidence remain strong heading into 2026.

 

Developers Keep Betting on Extended-Stay

Developers choose extended-stay because it fits many guest types:

• Remote workers & relocating families

• Corporate travelers

• Guests needing long-term stays

What’s Underway

• 426 projects (44,770 rooms) are already under construction.

• 976 projects (101,853 rooms) are set to start within 12 months.

• Another 1,071 projects (105,405 rooms) are still in the planning stage.

The Outlook

Extended-stay growth shows no signs of slowing through 2027:

• 1,918 new hotels (105,051 rooms) expected to open.

• 293 new properties (30,401 rooms) projected to open in 2025 alone.

• Annual growth expected to exceed 5%, making it one of hospitality’s strongest segments.

BASE4 has designed hundreds of extended-stay hotels, helping developers move from concept to completion — faster, smarter, and more cost-effectively.

 

Thank you,

Blair Hildahl
BASE4 Principal
608.304.5228
BlairH@base-4.com

Source:

1.Lodging Econometrics (Q2 2025 U.S. Extended-Stay Hotel Development Pipeline Report)

2.HotelBusiness.com – “Extended-Stay Hotels Set for Expansion” (2025)