What is an extended stay hotel and how does it work?
An extended stay hotel combines the convenience of a hotel with the comforts of home. Guests can expect living areas, kitchenettes or fully equipped kitchens, laundry facilities and sometimes on-site amenities like fitness centers, free Wi-Fi, housekeeping or even breakfast services. This setup allows guests to cook their own meals, do laundry and generally maintain a home-like routine while staying away from home.
Extended stay hotels typically offer weekly or monthly rates rather than nightly pricing. This can make them more cost-effective than traditional hotels, especially for business travelers on long assignments, families in transition or anyone relocating temporarily.
What types of guests stay at an extended stay hotel?
Extended stay hotels attract many types of hotel guests, each with unique needs:
- Business travelers: Professionals on long-term assignments or projects.
- Families: Those traveling with children or extended family, seeking home comforts.
- Digital nomads: Individuals who work remotely and want a home-like environment.
- Slow travelers: Guests exploring a destination at a leisurely pace, needing more time and flexibility.
What's the difference between extended stay hotels and traditional hotels?
Now let's take a look at some of the main differences between traditional hotels and extended stay hotels.
Length of stay
Long-term stay hotel or extended stay hotels cater to guests staying several days, weeks or even months. This contrasts with traditional hotels, where stays are usually one to a few nights. The purpose of travel also differs: extended stays often serve business, relocation or medical needs.
Room layout and amenities
Extended stay rooms are designed for living, not just sleeping. Typical features may include:
- Kitchenette or full kitchen
- On-site laundry facilities
- Living areas separate from bedrooms
- One or more bathrooms
- Workspace or co-working areas
- TV and Wi-Fi
- Fitness center or gym
- Pet-friendly options
Housekeeping and staffing
While extended stay hotels may provide weekly cleaning or daily cleaning upon request, it's not like serviced apartments where this is included automatically. Unlike traditional hotels with a staffed front desk, extended stay properties may rely on phone support or digital services. This approach aligns with guest expectations for independence while still offering essential services.
Pricing models
Extended stay hotels offer weekly or monthly rates, often with discounts for longer stays. Traditional hotels charge nightly rates, with prices fluctuating based on demand.
Booking behaviour
Guests at extended stay hotels often book directly to secure the best rate and may extend their stay once on-site. Traditional hotel guests tend to book set dates through OTAs or the hotel's channels.
Guest expectations
Extended stay guests value privacy, functionality and a home-like environment over luxury. Traditional hotel guest expectations, however, are slightly different. They expect a full-service experience, including concierge, restaurants, buffets or spa services.
Why are extended stay hotels growing in popularity?
- Living like a local: Modern travelers want more than just a place to sleep – they want a home-away-from-home that offers apartment-like flexibility and the feeling of truly experiencing a destination. Operators can tap into this desire by creating inclusive, comfortable living experiences.
- Price-conscious guests: In a volatile economy, many guests want to cook their own meals to save money. For operators, this is an opportunity to offer affordable rates while encouraging longer stays, boosting overall revenue.
- Low-maintenance expectations: Extended stay guests prioritize functionality over luxury. They expect no-frills apartments at reasonable prices, which allows operators to keep start-up and operational costs lower.
- Remote and hybrid work: With more professionals able to work from anywhere, longer stays are increasingly common. These guests are loyal and low-maintenance, with just a few essential needs: reliable Wi-Fi and a comfortable workspace.
6 challenges of running an extended stay hotel
Extended stay hotels can be profitable and appealing to modern travelers, but they also bring their own operational complexities. Here are six of the most common challenges operators face:
1. Managing longer-stay guests
Most PMS platforms are built around short-term stays, which makes it harder to manage guests who stay weeks or months. Tracking long-term reservations, handling mid-stay changes and scheduling recurring services like weekly housekeeping or preventative maintenance all require flexibility that not every system can handle.
2. Complex pricing models
Extended stay properties often need pricing beyond standard daily rates. Weekly and monthly tiers, bundled packages that include utilities or housekeeping services and dynamic pricing based on length of stay can quickly become complicated to maintain alongside traditional hotel room rates.
3. Billing and invoicing
Longer stays mean more complex billing. Corporate clients may request custom billing cycles, guests may need itemized invoices for tax or reimbursement purposes, and operators must handle deposits, partial payments and pre-authorizations with accuracy. Without the right tools, billing can become a major pain point.
4. Modifying bookings
Extended stay guests often want flexibility. They may decide to extend or shorten their stay, but because space is blocked for a long period, any changes can create gaps that are hard to fill. This makes availability management more challenging compared to traditional hotels.
5. Balancing costs and services
Providing a home-like experience means covering the costs of utilities, laundry, and cleaning products over longer periods of time. Without careful planning, waste can build up and eat into margins. Operators need to strike a balance between keeping costs down and maintaining a high level of guest satisfaction.
6. Giving guests their space
Extended stay guests value independence. Too much service can feel intrusive, while too little can lead to dissatisfaction. Getting the balance right often depends on self-service options and setting clear expectations around how often staff will check in.
How Mews supports extended stay hotels
Mews PMS is built for both short- and long-stay properties, offering features that make managing extended stays easier:
- Flexible pricing models for weekly or monthly rates
- Automated billing and payments
- Self-service features to support guest independence
- Streamlined operations that free staff to focus on the guest experience
- Self-service check-in and digital keys
- Customized housekeeping schedules for long stays
- Opportunities to monetize beyond rooms, including bike rentals, coworking spaces, parking or meeting rooms
Want to learn more? Book a demo with one of our Mews experts.
Conclusion
Extended stay hotels offer significant opportunities for hoteliers and guests alike. Success depends on having the right systems in place to manage operations, meet guest expectations and maintain satisfaction over long stays. Mews hotel management software provides the tools to streamline extended stay operations, enhance the guest experience and maximize revenue.
Thinking about upgrading to a PMS that supports your short- and long-stay guests?
Download "The Guide to Switching Your PMS"
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