Staying Competitive in the Extended-Stay Hotel Market
Keep Guests for the Long Haul
For some operators seeking year-long profitability, the extended-stay hotel market is a key area to compete in. The good news is this segment is growing. According to The Highland Group, demand in this segment is outpacing supply by almost three-to-one in many U.S. markets.
Lodging reports that “extended-stay hotel revenue has been growing at a compound annual growth rate of 3.2% over the past five years—including an estimated 2.9% increase in 2023—and is expected to total $20.9 billion in 2023, with profit poised to reach 18.1%.”
All this data reads as an opportunity for hospitality operators to dive into this market. But how can you equip your property for long-term guests? There are several key elements.
All About Amenities
Your hotel’s amenities and common spaces are always a selling factor, but they make an extra impact in the extended-stay hotel market. Making sure these spaces are up-to-date, clean, and safe is essential.
Plus, different amenities are likely to be more important than others in this space. While short-term guests may be impressed by your swimming pool or breakfast bar, long-term guests might prioritize your laundry facilities and fitness center. If you’re marketing to extended-stay guests, you’ll want to highlight these spaces.
Is safety and security at the top of your priorities? It is for extended-stay guests. Because they’re staying with you for longer and likely bringing more of their belongings with them, these customers will focus on finding a safe stay above all.
You can make them feel more secure with features like access-locked elevators, secure Wi-Fi, well-lit entries and parking lots with security cameras, as well as room safes.
Communication Is Key
Inconveniences and miscommunications are one thing on a weekend trip. They’re quite another on a month-long stay. That’s why a solid feedback loop is a priority for competing in the extended-stay hotel market.
You want to make sure you have a strong system for communication that’s clear and easy to use. Many operations are now creating apps that connect guests with staff, as well as offering text and email assistance. No matter which method you choose, you need to make sure your staff is well-versed in it so they can provide optimal service.
Break into the Extended-Stay Hotel Market
Slow seasons are unavoidable, but catering to long-term guests can help you mitigate their effects. The extended-stay hotel market is even considered by some to be “recession-proof” meaning that accommodating these clients is ideal in good times and bad.
If you need help sourcing programs that suit the needs of your long-term guests, your Foodbuy Hospitality account manager can help. Call them now to discuss your options.