Hotels Shifting to Extended-Stay Properties Face Greater Scrutiny from Insurers

Although extended-stay hotels do not make up a large part of the industry’s capacity, more operators are switching to this business model. Extended-stay hotels are increasingly profitable for their owners. That’s because they have relatively steady occupancy and they can maintain a lower staffing level. Plus, they do not need to provide as many services as transient hotels have to in order to attract guests. The high profit margins enjoyed by operators of extended-stay properties are an attractive incentive for others to transition their properties from transient hotels to extended-stay properties.