Novotel Living Singapore Orchard

Global hospitality group Accor is ramping up its presence in the US$54.5 billion global extended stay hotels market with the expansion of its Novotel Living brand to new destinations.

Now operating in Singapore, Bangkok, Saigon, and Kazakhstan, Novotel Living is gaining momentum in various markets with more locations soon to be announced, while Pullman Living and Adagio also continue to grow.

With more than 380 extended stay hotels under 14 global brands, spanning economy to luxury, Accor is dominating the category outside the United States. And with the market projected to reach US$166.5 billion by 2032, according to Future Market Insights, the group is positing itself for continued growth.  

“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 Accor Deputy CEO and Premium, Midscale and Economy Division CEO, Jean-Jacques Morin.

“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.”

With a high concentration of properties across Europe and Asia, Accor is tapping into areas with high demand for extended stay, serviced apartments and private rentals, but growth in the US market also spells opportunity.

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.

But in the US, despite hotel extended stay portfolios expanding by “more than 50%”, according to CBRE Hotels Research and STR, The Highland Group reports demand for extended-stay lodging is still “outpacing supply by nearly three-to-one in most US markets.”

“The escalation of demand for extended stay properties is a global phenomenon, driven by a demographic shift among travellers who are taking longer trips, mixing business with leisure, and exploring destinations more fully,” said Morin.

Accor recently opened Pullman Living Dongguan Forum in China, while Adagio has opened eleven new aparthotels across five continents this year.

There are several luxury serviced apartment projects underway including the 250-key Sofitel Serviced Residences Riyadh.