Accor shared an update on its market leading position in the global extended stay, serviced apartments and private rentals segments including exciting new destinations for its Novotel Living brand. The forward-thinking extension of Novotel, one of the best-known midscale hotel brands in the world, is now operating in Singapore, Bangkok, Saigon, and Kazakhstan, with more locations soon to follow. With more than 380 extended stay hotels under 14 global brands, Accor is the world’s largest player in the category (outside the United States), with a high concentration of properties across Europe and Asia.
“With new travel habits taking hold and more people seeking out longer stays, Accor has continued to do what we do best – lead the markets where we have deep roots, strong relationships, and a powerful presence – such as Europe, the Middle East and Asia-Pacific,” said Jean-Jacques Morin, Accor Deputy CEO and Premium, Midscale & Economy Division CEO. “Over the past couple of decades, Accor has established solid bench strength in our extended stay portfolio with many of our flagship brands – from Adagio, which is Europe’s market leader in the aparthotel industry, to stylish serviced residences across our luxury and lifestyle portfolios. With one of the fastest growing extended stay networks in the industry, and robust demand for our popular premium to midscale brands such as Novotel Living, we will continue to push the boundaries in creating innovative places where our guests can live, work, and play.”
The global extended stay hotels market is currently valued at approximately USD 54.5 billion and projected to reach USD 166.5 billion by 2032, as measured by Future Market Insights, predicting a compound annual growth rate (CAGR) of 11.8% over the next 10 years. According to the Global Serviced Apartment Industry Report (GSAIR) 2023, “Europe remains the epicenter of serviced apartment demand,” while Asia Pacific accounts for the largest share of corporate serviced apartment volumes, with the UK a close second. The report further identifies the cities with the greatest growth in demand as Riyadh, London, and Singapore.
Beyond the new Novotel Living destinations, Accor recently opened Pullman Living Dongguan Forum in China, and Adagio is celebrating its 15th anniversary in 2023 with the opening of eleven new aparthotels across five continents. New destinations include Abidjan Marcory in the Ivory Coast; Rome, Italy; Whitechapel London, UK; and Heidelberg, Germany. Meanwhile in Riyadh, Accor has several highly anticipated luxury serviced apartment projects underway including the 250-key Sofitel Serviced Residences Riyadh.
CBRE Hotels Research and STR have noted that in the US, hotel extended stay portfolios have expanded by “more than 50% – a CAGR of 7.1% versus 3.2% for the US market as a whole.” And yet, as a recent report by Skift highlights (with figures from The Highland Group), demand for extended-stay lodging is still “outpacing supply by nearly three-to-one in most US markets.” Furthermore, The Highland Group reports that earlier this year, “the economy, mid-price, and upscale segments saw demand increasing by double-digit percentages while supply rose by only low single-digit percentages.”
Accor’s global brands with extended stay offerings range from economy to luxury, including Europe’s market leader Adagio and Adagio Access, refreshingly modern Mercure Living, and one of the newest and most popular, Novotel Living. In the premium segment, Accor’s global brands with extended stay include Swissôtel Living, Pullman Living, and Mövenpick Living. Accor’s serviced residences in the luxury and upper upscale categories are found among the Fairmont, Sofitel and MGallery Living brands. Accor is the only major hotel group to offer extended stay offerings in the lifestyle segment, represented by Ennismore’s Hyde, Mondrian, SLS and SO/ brands. In addition to these, Accor has multiple brands operating extended stay on a regional basis, such as: The Sebel, Tribe Living, Cassia, Mantra, Peppers, Art Series, and Breakfree, along with another 33,000 private villas, apartments, and branded residences operated in rental programs.
A dedicated booking website allows travelers to explore and select from Accor’s diverse portfolio of extended stay, serviced apartment properties, and branded residences participating in rental programs. Guests and residents of these destinations will benefit from Accor’s lifestyle loyalty program ALL – Accor Live Limitless, a daily lifestyle companion that harnesses and enhances the brands, services, and partnerships offered through Accor’s worldwide ecosystem.
“The escalation of demand for extended stay properties is a global phenomenon, driven by a demographic shift among travelers who are taking longer trips, mixing business with leisure, and exploring destinations more fully,” said Morin. “At Accor, we offer an unmatched portfolio of extended stay brands to service any traveler type and ensure that the brand experience of each remains true.”