The hotel industry is expected to experience massive growth this year, and one thing driving this expansion is the extended-stay model.

The industry is projected to reach more than $426B in global revenue by the end of 2024. It is on pace for an annual growth rate of 3.7% for the next five years and is expected to reach a market value of nearly $512B by 2029.

Extended-stay hotels, which provide lodging for travelers who need more amenitized accommodations for a few weeks or even months, have risen in popularity due to the flexibility they offer in a world where remote work culture has reigned supreme since the pandemic.

Hilton has a rich history of strategically building brands for every guest for any stay occasion and at various price points, and it is no stranger to the long-stay hotel model. LivSmart Studios by Hilton is Hilton's newest long-stay, studio apartment-style suites hotel brand, featuring a home-away-from-home appeal with distinct areas designed for cooking, working, living and relaxing.

“Following extensive research, we identified an open space in our portfolio of hotel brands and within the broader hospitality landscape — a rapidly expanding $300B workforce travel segment,” said Isaac Lake, brand leader of LivSmart Studios by Hilton. “This unique hotel product caters to this vastly underserved group of travelers looking for apartment-style accommodations for 20 nights or more and delivers an exciting investment option for developers looking to diversify their portfolio under the Hilton name.”

While Hilton has been in the extended-stay arena for more than three decades, it “gained steam” early in the pandemic when traveling nurses and doctors filled rooms for longer stays than the average traveler, Lake said. More recently, remote workers, vacationers and families have also sought out accommodations that are better suited for a longer stay.

“First introduced in 2023, LivSmart Studios is a midscale, long-stay option, offering guests simple and convenient amenities at an affordable price while also capitalizing on property owners’ desires for a cost-effective hotel to build and operate,” Lake said.

Lake said that now more than ever, guests want to feel at home, from cooking their own meals in quality kitchens to reduce food costs to having a spacious layout that increases productivity. They also want to relax during downtime without having to venture far from the suite.

He said LivSmart Studios has reimagined what extended stay means with a “ground-up approach” to help meet the unique needs of long-stay guests.

“Our LivSmart Studios concept has a deliberate design with warm wood tones and light industrial touches to make it a home setting,” Lake said. “It also features adaptable apartment layouts for comfort and productivity and a nontraditional lobby experience featuring retail, fitness and other conveniences.”

Lake said this concept has seen tremendous growth as mobility trends have continued to expand in multiple workforce sectors. He added he believes this will attract younger guests who are starting their careers and want to find their footing with more flexible options.

“LivSmart Studios is also designed for young business travelers who will be working on a client’s premises during long-term work assignments or housing relocations, and also appeal to insurance claims professionals, construction crews and more,” he said.

The company’s first LivSmart Studios broke ground in 2023 in Kokomo, Indiana, with a scheduled open date in 2025. The property will feature 137 units with fully equipped kitchens, bathrooms, storage spaces and a lobby with a fitness center and laundry room.

Lake said that during LivSmart Studios’ early stages, he received a lot of input from leading hotel owners and target consumers around the country, and the response from the hotel owner and developer community has been immediate and enthusiastic.

“LivSmart Studios concept was so highly regarded that it was one of the reasons that Hilton was listed on Fast Company’s 2024 list of the Most Innovative Companies,” he said.

Lake said this sector will continue to flourish with new brands entering the segment, but the key to success is collaborating with hotel owners and developers from the start because they will help prioritize focus areas for investment to deliver on the services and accommodations that are most important to long-stay guests. This is something Hilton will continue to do as it rolls out LivSmart Studios.

Hilton has a lot in store for the future and Lake said he is confident LivSmart Studios will have repeat success in multiple iterations and markets.

“We’re engaged in more than 350 active development conversations, with many owners interested in multiple LivSmart Studios locations,” he said. “With a flexible physical footprint, the brand is ideal for nearly any geographic location, from urban centers to secondary and tertiary markets.”

This article was produced in collaboration between Studio B and LivSmart Studios by Hilton. Bisnow news staff was not involved in the production of this content.

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