Full Definition
Extended-stay hotels (Residence Inn, Homewood Suites, WoodSpring Suites, Extended Stay America) cater to guests staying 7–30+ nights. They feature in-room kitchenettes, larger rooms, and weekly/monthly rate options. Lower housekeeping frequency (weekly vs. daily) and longer booking duration reduce operational complexity and cost vs. transient hotels. Post-COVID demand from remote workers and project-based employees has strengthened this segment nationally — including in Orlando, where UCF Medical City, construction crews, and corporate travelers drive extended-stay demand.
Why It Matters
Extended-stay properties command 10–20% revenue premiums vs. transient hotels while reducing housekeeping costs. They also attract a more stable demand base than tourism-only hotels, making their cash flow more predictable through Orlando's seasonal tourism cycles.
Related Terms
ADR (Average Daily Rate)
The average revenue earned per occupied room per night. Calculated as total room revenue divided by occupied rooms.
RevPAR (Revenue Per Available Room)
Hotel performance metric: total room revenue divided by total available room-nights. Combines occupancy and rate into a single metric.
Occupancy Rate (Hotels)
The percentage of available hotel rooms that are occupied during a given period. Key demand metric for hotel underwriting.