# A Notable Shift in the Extended Stay Hotels Market is Poised to See More Growth with A Few Key Changes

By Stephanie Leger · Published 2024-04-18 · Updated 2026-06-09 · Hospitality on MarketScale
Canonical: https://www.marketscale.com/industries/hospitality/notable-shift-in-extended-stay-hotels-market-poised-to-see-more-growth-with-changes

> Smaller markets are driving unexpected revenue gains for extended-stay properties as remote work reshapes guest expectations

## Key points

- Smaller and secondary markets are emerging as unexpected revenue drivers for extended stay hotels.
- Remote work is fundamentally changing guest expectations and booking behavior in the extended stay segment.
- Strategic changes in amenities, pricing, and positioning could unlock additional growth opportunities for operators.

Block Field

How can [hotels adapt to the evolving demands](https://marketscale.com/industries/hospitality/why-hotels-should-learn-to-love-robot-technology/) of guests who seek more than just basic amenities during extended stays?

While the hotel industry saw economic downturns in 2020 and 2021, many brands today are adapting to market changes in the extended-stay hotel segment. This segment, which also saw a decline, [particularly saw a surge in demand](https://www.asianhospitality.com/us-extended-stay-hotel-occupancy/) in Revenue Per Available Room. Smaller markets have been leading this increase. The surge was mostly [from remote workers and infrastructure projects](https://www.hotelmanagement.net/development/extended-stay-market-how-are-brands-adapting-market-changes). This trend has been encouraging more brands to refine their models for profitability and to attract new guests, especially younger travelers and digital nomads. In order for hotels to get ahead of this new market, there are a few key changes that are essential to maintain and push for growth.

[**Stephanie Leger**](https://www.linkedin.com/in/sleger/), a Hospitality Excellence Guru and the CEO of [**First Rate Hospitality**](https://www.firstratehospitality.com/), emphasized why transforming hotel spaces is vital to fostering a sense of community that enhances guest experiences that encourage extended stays.

"If you're a new build or undergoing renovations to enhance your amenities, one area you should definitely focus on is your lobby space, because it's where you bring guests together, whether they're here for business, leisure, or embracing the remote life work style," said Leger.

> If you're a new build or undergoing renovations to enhance your amenities, one area you should definitely focus on is your lobby space, because it's where you bring guests together, whether they're here for business, leisure, or embracing the remote life work style.
> *— Stephanie Leger, CEO at First Rate Hospitality*

Tags: extended stay hotels, First Rate Hospitality, hospitality, hotels, Stephanie Leger

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