Dhalla Group

Beyond the Kitchenette: Designing Extended-Stay Assets That Outperform

Beyond the Kitchenette: Designing Extended-Stay Assets That Outperform

By David Zaltzman

 

Residence Inn by Marriott, Laval QC, owned by Dhalla Group

 

Extended stay is no longer a niche segment; it is one of the most resilient and strategically valuable product types in today’s lodging landscape. Over the past few years, extended-stay demand has repeatedly outpaced the broader market, with the segment posting some of its strongest monthly gains in 2025–2026 even as overall hotel performance faced headwinds. Market studies project the global extended-stay hotel market to grow from roughly USD 60 billion in 2026 to near USD 100 billion by the early 2030s, driven by corporate relocation, project work, healthcare and life-sciences travel, and a structural shift toward longer, more flexible trips.

 

For owners and operators, the question is no longer “Should we be in extended stay?” but “How do we design and operate these spaces so they consistently outperform?” The answer lies in treating extended stay not as a discounted transient product with a kitchenette, but as a residential-scale living environment that supports real daily routines over weeks and months.

 

Start With How People Actually Live

 

The most successful extended-stay rooms feel less like hotel rooms and more like small, well-run studio or one bedroom apartments. That starts with the layout. Guests on longer stays need clear zones for sleeping, working, eating and relaxing, with enough separation that one activity does not disrupt another. A proper suite should allow a traveler to host a quick video call while a partner prepares a meal, or to let children unwind in a living area without disturbing a parent working late.

 

Fully equipped kitchens are now table stakes, not a differentiator. More than three-quarters of extended-stay guests say they prefer rooms with kitchen facilities, and operators who treat the kitchen as a core revenue and satisfaction driver, rather than an afterthought, see better reviews, longer lengths of stay and higher direct repeat booking. That means full-size or apartment-size refrigerators, proper stovetops, microwaves, adequate counter space, real cookware and dishware, and storage that can handle groceries for a week or more.

 

Storage is equally critical. Long-stay guests arrive with more than a weekend bag. They need closet space for multiple outfits, luggage storage that does not invade the living area, and cabinetry that can accommodate personal items without making the room feel cluttered. Thoughtful storage reduces perceived crowding and increases the likelihood that a guest will extend a stay rather than cut it short.

 

Design for Work, Not Just “Work-Friendly”

 

Remote work and hybrid travel patterns have permanently changed what guests expect from their room. A small desk by the window is no longer sufficient. Extended-stay guests need a legitimate workspace: a properly sized desk, an ergonomic chair, multiple power outlets, strong and reliable Wi‐Fi, and lighting that supports both screen work and reading. In many cases, the workspace should be positioned so it does not dominate the entire room when not in use, preserving the residential feel.

 

For operators, this has direct revenue implications. A room that functions well as a temporary office supports higher weekday occupancy from corporate travelers, project teams and relocating employees. It also makes the property more competitive for negotiated corporate business and long-term contracts, where consistent workspace quality is often a deciding factor.

 

Residential Comfort Without Sacrificing Operational Efficiency

 

Owners rightly worry that “more residential” means “more complex to operate.” The best extended-stay designs prove the opposite. Durable, residential-style finishes, quality vinyl flooring, solid surfaces, performance fabrics, can withstand heavy use while maintaining a warm, home-like aesthetic. Furniture should be comfortable enough for daily living but robust enough for commercial use and frequent housekeeping cycles.

 

Housekeeping models must align with the product. Many extended-stay brands successfully use lighter-touch, on-request or scheduled cleaning for stays beyond a certain length, reducing labor costs while meeting guest expectations for privacy and routine. The design should support this: easy-to-clean surfaces, logical trash and linen collection points, and kitchens that guests can reasonably maintain between professional cleanings.

 

Laundry access, whether in-room or on-floor, is another operational lever. Guests who can wash clothes onsite are more likely to book longer stays and less likely to complain about closet capacity. For owners, the incremental cost of laundry infrastructure is often more than offset by increased length of stay and reduced room wear from guests not overstuffing closets with luggage.

 

Community and Belonging Matter More Than You Think

 

One of the biggest risks in extended stay is isolation. Guests staying for weeks can feel disconnected, especially in suburban or airport-adjacent locations. Leading properties counter this by designing communal spaces that encourage routine and connection: welcoming lobbies with real seating, co-working-friendly areas, casual F&B concepts, evening socials, and outdoor spaces that feel like extensions of the living room rather than afterthoughts.

 

These spaces do not need to be shiny. They need to be usable, livable. A well-lit lounge with power, a simple breakfast concept, a small fitness area and a safe outdoor space can materially improve guest satisfaction and review scores. For operators, these amenities also create additional revenue opportunities through grab-and-go concepts, evening offerings and partnerships with local services.

 

Location and Product Must Match

 

Not every location supports the same extended-stay product. In life-sciences and corporate corridors like Laval, Quebec, for example, demand is heavily driven by project teams, relocating employees, healthcare and research visitors, and business events. A Residence Inn–style product near major employers, conventions and family attractions can capture both weekday corporate demand and weekend family and leisure demand, smoothing occupancy across the week.

 

In contrast, a property positioned primarily for airport overflow or pure leisure must be designed and priced differently. The key is to align room mix, kitchen capability, workspace quality and communal amenities with the dominant demand generators in your submarket. Owners who try to serve every possible extended-stay segment with one product often end up underperforming in all of them.

 

The Owner–Operator Bottom Line

 

From an investment perspective, extended stay offers a compelling combination: typically higher and more stable occupancy, lower distribution costs on longer stays, and the ability to command meaningful rates when the product truly functions as a home away from home. The segment has shown it can outperform economy and midscale hotels in both up and down cycles, particularly when designed and operated with a clear long-stay thesis.

 

But design decisions made at the concept stage lock in performance for decades. Skimping on kitchen quality, workspace, storage or communal areas might reduce initial capex, but it will show up in lower guest satisfaction, shorter lengths of stay and weaker corporate relationships. For owners and operators, the right question is not “What is the minimum we can provide?” but “What is the minimum a guest needs to live here comfortably for 30 nights?”

 

Extended stay is increasingly a test of whether we, as owners and operators, truly understand how people live when they are away from home for weeks or months. The properties that win will be those that design every square foot around that reality, then operate them with a model that supports both residential comfort and disciplined economics.

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