The Weekly Take from CBRE Here to Stay: A look at extended-stay hotels - [encore - 02.03.25]
May 27, 2025
Greg Juceam, President and CEO of Extended Stay America, shares his insights on the booming extended-stay hotel industry. He discusses the resilient investment potential in secondary markets and the operational efficiencies that simplify management. Juceam emphasizes ESA's unique growth model, blending ownership and franchising for scalability. The conversation also touches on how trends like remote work and healthcare-driven demand are shaping the need for long-term accommodations, making extended stays an appealing alternative to traditional hotels.
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Select Sites with Diverse Demand
- Assess markets for strong long-stay demand drivers like construction, hospitals, universities, and government installations before building.
- Use specialized market data to forecast future occupancy from long-term guests.
Driving Guests Shape Location Choice
- Extended stay guests mostly drive to the hotel and prefer proximity within a few miles of highways and retail.
- Hotels benefit from visibility and accessibility but do not need to be adjacent to highways or malls.
Broad Competition Landscape
- Extended stay hotels compete broadly with short-term rentals, RVs, and friends’ homes for long stays.
- ESA’s unique focus on affordable extended stay differentiates it from big hotel conglomerates with diverse portfolios.