At extended stay hotels…
… guests typically check in for 1 week to several months. They differ from traditional hotels in a couple of ways:
- They have cheaper nightly rates
- They come with kitchenettes
- They swap posh amenities for things like laundry and mail services
They’re also cheaper to operate
With less guest turnover, hotels save on cleaning and staffing costs. And because guests frequently cook for themselves, they don’t need full-service, on-site restaurants and bars.
Plus, they can weather a pandemic
At the onset of the pandemic, extended stays were used by health care and military personnel. In 2020, revenue per available room fell 48% YoY for traditional hotels, but only 33% for extended stays.
In 2021, extended stays enjoyed an average occupancy rate of 73% compared to 56% for hotels in general.
Fun fact: Actor Richard Harris once said he lived in London’s The Savoy Hotel because “if you’re paying the mortgage on a home, you can’t ask the bank manager to fetch you a pint.” He’s got a point.
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