In the hospitality market, extended-stay hotel construction is booming. Lodgings Econometrics reports that over 1/3 of all hospitality constructions in Q1 of 2024 were extended stay hotels and an increasing number of hotel brands are branching out into extended stay in addition to their full-service hotel and resort properties. Future Market Insights reports that extended-stay hotels have a projected compound annual growth rate of 11.8% and offer a lot of promise for investors in terms of both quick turn-around and lucrative cash flow.
The conditions in today’s economy have become perfect for the extended-stay business model. These hotels like the ever-present Extended Stay America are efficient to run, appealing to the growing population of traveling professionals, useful for families in a troubling housing market, and quick to construct. The stars have aligned, so if you invest in hospitality construction, now is the time to ask yourself: Should you build an extended stay hotel?
An extended stay hotel offers apartment-like rooms with full kitchens, more spacious living areas, and on-site laundry. It is possible for guests to live like locals from their room, preparing food bought from the grocery store and doing their own laundry for a few days to several months at a time.
The extended stay hotel model is more welcoming for professionals who are temporarily relocated, people in the middle of a household move, and independent-minded travelers who prefer to be self-reliant. Not only are the rooms more accommodating, but the room design also reduces the need for on-site amenities and concierge services.
The term “extended stay” as you might guess, also suggests the ability to welcome guests for much longer periods of time at an economic price, often comparative to a rental apartment, while also able to accommodate more traditional short-stay guests.
The number of traveling professionals has boomed since the pandemic. It’s not just the remote work trend. Remote work caused a revolution of “digital nomads”; both individuals and jobs accepted that work can be done on the road without the usual rigmarole of “business trips”. Professionals now need a more home-like environment where they can work while away from home, either remotely or while attending a temporary job location.
AirDNA reports the popularity (and then dramatic crash) of Airbnb has increased public interest in “whole home” type lodgings, which are reflected in the extended stay style. From one night to several months, many travelers discovered that they prefer to have their own kitchen and laundry rather than relying on hotel staff.
The recent federal infrastructure projects have relocated many construction workers, leading extended stay hotels to appear near them. This has also inspired new hotels to be built near other relocation centers such as factories and tech hubs.
Extended stay hotels appeal to relocating families, as the spaces are far more accommodating for parents and children traveling together compared to traditional hotel rooms. Families struggling to find affordable housing in many post-pandemic markets are also staying for longer periods while seeking a long-term lease.
In areas with colleges and universities, the rising cost of student housing and the need for less-than-annual lodgings has led many students to take up residence in extended stay hotels.
Needless to say, there is abundant and still growing demand.
In addition to the high rate of demand, investors are enthusiastic about extended stay hotels due to their significantly lower construction and operational costs. Guests are more self-reliant and expect fewer concierge amenities from an extended stay hotel. This means fewer facilities and a smaller staff.
A kitchen, restaurant, and room service are not required. Many extended stay hotels also do not offer breakfast, with no loss of guest demand. Guests cook their own food in their individual kitchens.
A coin operated laundry room is provided instead of an internal or contracted laundry service. Linens are often changed 2-3 times a week instead of every day in extended stay hotels. Guests also stay longer with less frequent room turnovers. Together, these minimize the cost of laundry, the number housekeeping staff needed, and the labor required for room turnover each day.
Hotel pools are optional, and spas are not required, as guests rarely book to relax. Gyms are beneficial and offered by EchoSuites by Wyndham but are not necessary.
These factors together mean that extended stay hotels can be constructed with a much more economic and simple design with lower operational overhead.
Extended stay hotels have been found to offer significant profit opportunities, both in terms of rapid construction potential and guest revenue. Profitability is achieved through strategic placement, thoughtful design, and operational efficiency.
Rooms are comfortable and utilitarian, giving guests the ability to provide for their own needs. Technology makes it possible to streamline customer service, including check-ins, door locks, and service requests.
Extended stay hotels are also resilient in economic downturns due to their diverse guest base, relatively low room cost, and their facility as supplementary housing.
Matt McElhare of Choice Hotels International reports that a midscale extended stay hotel can operate with about 11 full-time staff alone. He concludes that it is possible to increase gross operating profits between 10 and 15 percent over select-service hotels. There is still a two-to-one supply imbalance that supports significant continued growth when investing in the extended stay hotel sector.
Lastly, extended stay hotels can partner with local businesses on several levels to increase profitability.
Partnering with large companies that often relocate staff can ensure a steady flow of guests and predictable long-term stays. You may partner with local universities to provide safe student housing that is included in the bus route, providing you with a constant influx of student guests each semester. Westminster University, for example, has several hotel partnerships.
You can also partner with services like grocery delivery, takeout restaurants, and even childcare facilities that will help to enhance the convenience and travel/work lifestyles of your guests.
For example, Grubhub has partnered with several extended stay hotel brands like Homewood Suites and InTown Suites to provide food delivery.
When planning to buy or build an extended stay hotel, naturally there are a few factors that should be considered. Zoning, necessary building features, local market demand, and stand-out amenities can all influence the overall profitability of each extended stay hotel based on location and design.
An extended stay hotel requires proper zoning and strategic positioning. The building design itself should feature full-sized rooms designed as small apartments, each with a full kitchen, full bathroom, and a spacious family area. Rooms should have one or two beds with a capacity for additional fold-out beds and cots for children and families.
Extended stay hotels amenities should include coin-operated laundry facilities, linen service every few days, and staff available for guest assistance and emergency services.
The local market demands extended-stay lodgings. Valuable market conditions include nearby work sites that attract relocated workers, nearby colleges and universities, high housing prices, and low local availability of affordable housing.
Many extended stay hotels are minimalist. Your property can stand out to guests by offering comfortable rooms that resemble furnished apartments and lifestyle-enhancing amenities such as a pool or well-appointed gym. Guests also appreciate high-tech features, app-connected guest services, and good quality internet connection.
Homewood Suites by Hilton stands out by having restaurant and breakfast services when many extended-stay hotels do not. Liv Smart focuses on independence with dishwashers in each suite instead.
Guests without a personal vehicle in the area will value extended stay hotels near a grocery store or affordable restaurants. You might also provide pet-friendly rooms on the ground floor to appeal to a large niche of relocated travelers with pets.
Guests without a personal vehicle in the area will value extended stay hotels near a grocery store or affordable restaurants. You might also provide pet-friendly rooms on the ground floor to appeal to a large niche of relocated travelers with pets.
The market is hot for extended stay hotel construction, as demand for supply is still two-to-one, and demand is still on the rise. In the right location, now is a very profitable time for new, modern, and comfortable extended stay lodgings.
Extended stay hotels are on the rise, and demand is still significantly outpacing supply. Properly positioned, building a new extended stay hotel that stands out in comfort and modernity while achieving operational efficiency will provide a profitable investment opportunity. Furthermore, a new construction gives you the opportunity to ensure your extended stay hotel outshines older buildings and appeals strongly to your target guest populations based on your chosen location.
Explore the potential for investment in extended stay hotels with NewGen Advisory. Contact us to discuss potential markets and opportunities.
Jourdyn leads the strategic marketing initiatives for NewGen Advisory, overseeing brand development, market positioning, communications, and business growth efforts across the firm.
With more than a decade of experience in marketing and business development, Jourdyn specializes in building brands, creating demand-generation strategies, developing thought leadership programs, and executing integrated marketing campaigns that drive measurable business results. Her expertise spans digital marketing, public relations, content strategy, events, social media, lead generation, and corporate communications.
At NewGen, Jourdyn is responsible for shaping and executing the firm’s marketing strategy, ensuring consistent brand visibility across all channels while supporting advisors, clients, and strategic initiatives nationwide. She works closely with leadership to develop campaigns, elevate industry presence, strengthen client engagement, and position NewGen as a trusted advisor within the hospitality investment sector.
Jourdyn holds a Bachelor of Arts in Mass Communication and Media Studies from Arizona State University and a Master of Business Administration (MBA) with an emphasis in Marketing from Grand Canyon University.
Most mornings you’ll find Jourdyn in the gym before sunrise and spending time with her husband and children.
Allysia Howerton joined NewGen Advisory in 2026 as a Pipeline & Transaction Assistant, relocating from St. Louis, MO to Arizona to take on the role. She brings a background spanning property management, client services, sales, and administrative leadership, with a track record of managing complex workflows and keeping transactions moving efficiently from inception to close.
Known for her organization, attention to detail, and relationship-driven approach, Allysia supports transaction management, pipeline coordination, and day-to-day brokerage operations — and is passionate about growing her career within the hospitality real estate industry.
Outside of work, she enjoys discovering new coffee shops and restaurants, traveling to experience new cultures, and spending time with her dogs.
2 years
Josie Numedahl joined NewGen Advisory in July 2024 as a Real Estate Assistant (REA). Originally from Iowa, she relocated to Arizona to pursue her education, graduating from Grand Canyon University in 2022 with a Bachelor’s degree in Marketing and Advertising.
Josie began her professional career as a recruiter in the finance and accounting sector, and brings that client-facing, detail-oriented background to her work at NewGen.
Outside of work, she enjoys reading, hiking, exploring local coffee shops, and spending time with friends.
X years
Anthony is the Staff Accountant for NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC, working directly under CFO Michael Lepore to handle day-to-day accounting functions across all NewGen operations.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Anthony completed coursework at Paradise Valley Community College before co-founding a family business that produced custom-wrapped die-cast model cars for corporate clients — handling vehicle customization, display stands, and branded packaging. Serving as Director of Operations, he gained hands-on experience in management, production workflows, and running a business from the ground up.
Outside of work, Anthony is a lifelong ice hockey player with a passion for motorsports — particularly motocross and classic cars. Among his favorites: the 1963 C2 Corvette Sting Ray, the 1965 Shelby Cobra S/C, and the 1971 Plymouth Hemi ‘Cuda. He hopes to one day own and operate a bookkeeping firm serving small businesses.
X years
Nick serves as Director of Operations for NewGen Worldwide and NewGen Advisory, bringing a detail-oriented, forward-thinking approach to supporting the company’s continued growth. A Minneapolis native, Nick studied at Denison University and the University of Minnesota before making his way to Arizona, where he now lives in Mesa.
He spent a decade in the hospitality industry as a server, bartender, and restaurant manager — hands-on experience that gave him a strong operational foundation and a natural fit within NewGen’s hospitality-focused business.
Outside of work, Nick is an avid writer with a passion for art, photography, and travel, and enjoys documenting his experiences through the lens.
X years
Nycole serves as Chief of Staff at NewGen Advisory, where she trains and manages the Real Estate Assistant (REA) team. She works closely with REAs to ensure agents receive consistent, high-quality support throughout every stage of a deal — from contract to close.
Alongside the Office Manager, Nycole leads onboarding for new agents, REAs, and team members across NewGen Worldwide’s subsidiaries, and has developed a training library to streamline the process for incoming staff. She is also actively involved in evaluating and implementing new platforms to improve agent and REA workflows, while providing leadership with the data needed to monitor KPIs and track revenue goals.
Her background in franchise operations management — spanning startups to scaling franchises — makes her a versatile and valuable member of the NewGen team.
20+ years
Michael is the Chief Financial Officer of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions. Michael and his team oversee day-to-day accounting, budgeting, forecasting, and financial modeling across all NewGen operations.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Michael built over 20 years of experience in accounting, tax, and operations management serving small to mid-sized businesses. He holds active CPA licenses in both New York and Arizona. His career spans public accounting — including a role as Audit Manager at PricewaterhouseCoopers — as well as private accounting and business ownership, giving him a broad, hands-on command of accounting and management functions. That dual perspective allows him to bring both tax strategy and business strategy to bear when evaluating financial decisions. He is a member of the American Institute of Certified Public Accountants (AICPA) and the Arizona Society of Certified Public Accountants (ASCPA).
A proud Italian-American, Michael lives in Scottsdale with his wife, Patty, and their three children, Alyssa, Anthony, and Joey. Outside of work, he coaches ice hockey and has a passion for cooking Italian food.
X years
Kyle is a co-founder, Principal, and Chief Executive Officer of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment firm focused on creative, flexible solutions. Beyond his broad responsibilities as CEO, Kyle’s primary focus is leading Green Card Fund, developing and implementing capital solutions domestically and internationally, and identifying attractive investment opportunities.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, built on business partners Girish Patel and Dan Rama’s lifetime experience in the industry. Kyle’s financial acumen and creative approach to structuring deals help NewGen Advisory clients identify and secure profitable opportunities.
Kyle earned a B.A. in Interdisciplinary Studies from Arizona State University with a focus in Business and Urban Planning. He has long been involved with the Greater Phoenix Economic Council’s (GPEC) International Leadership Council, and in 2016 was elected to the Board of Directors of Invest in the USA (IIUSA), the national EB-5 trade association, where he actively contributes to legislative reform efforts and the permanent reauthorization of the EB-5 program.
Kyle splits his time between company offices in Phoenix, AZ and Washington, D.C. Outside of work, he is an avid reader, global traveler, and snowboarder — and after logging over a million miles as a passenger, he has recently taken to the cockpit, learning to fly himself.
20+ years
Girish Patel is a co-founder and Principal of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions across hospitality and healthcare. Among his core responsibilities are leading strategic initiatives, overseeing financial management, and driving real estate investment acquisitions.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, grounded in Girish’s and business partner Dan Rama’s lifetime experience in the industry. Having grown up in his family’s hotel business as an immigrant, Girish developed a bottom-up understanding of hospitality — mastering operations before becoming an investor, lender, and consultant. That ground-level perspective, tested across multiple economic cycles, underpins his 20+ years as a successful business owner and brings a distinctive depth of insight to NGA’s clients and investors.
Committed to continuous learning and giving back, Girish established the RC Patel Memorial Scholarship for students pursuing careers in real estate investment. He also serves on the Board of Directors of Global Ties Arizona, an organization that strengthens international relationships by making exchange programs more impactful.
X years
Dan is a co-founder and Principal of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions. His primary role is leading NewGen Advisory and serving as its Designated Broker in Arizona.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, built on Dan’s and business partner Girish Patel’s lifetime experience in the industry. Throughout his career, Dan has been involved in the disposition of over $600 million in hospitality assets, advising clients on acquisitions, mergers, and divestitures across the United States.
Dan began his career as a hotel operator and owner in 1994 following his studies at the University of Arizona, going on to build a portfolio as a franchisee of Red Brick Pizza, Holiday Inn, Ramada Inn, and Comfort Suites. He holds General Manager Certifications from Holiday Inn, Motel 6, and Days Inn, and is a Certified Hotel Owner (CHO) with a Certification for Hotel Industry Analytics (CHIA).
Beyond his company responsibilities, Dan is an active industry voice. He serves as an Ambassador with the Asian American Hotel Owners Association (AAHOA) — the largest hospitality owners association in the U.S. — and previously served as its Southwest Regional Director. He also sits on the Board of Directors of the Arizona Lodging and Tourism Association (AZLTA).
Dan lives in Gilbert, AZ with his wife, Chetna, their son Suraj, and their daughter Sonya. Outside of work, he enjoys golf and cheering on the Denver Broncos.
15+ years
Suraj is the Chief Legal Officer of NewGen Worldwide, LLC and a member of its senior leadership team, where he contributes to the operational management and strategic planning of the company and its subsidiaries — including Green Card Fund and NewGen Advisory. NewGen Worldwide is a diversified firm engaged in real estate investments, creative capital solutions, and advisory services for the entrepreneurial investor.
Suraj first served as outside counsel for Green Card Fund and NewGen Worldwide from 2008 to 2014 before joining the organization as Chief Legal Officer. In this role, he leads the company’s legal, regulatory, and corporate governance functions, with responsibility spanning real estate, risk management, contractual relations, and investment strategies. He also oversees the business administration of NewGen Advisory, a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Suraj was Managing Partner of Bhakta & Associates, PLLC, a full-service business law firm where he represented a broad range of clients across acquisitions and sales, corporate structuring, contracts, franchise law, development and construction, and equity and debt financing.
A native of Ohio, Suraj graduated from The Ohio State University in 1999 with a B.S. in Business Administration and earned his J.D. from Case Western Reserve University in 2002. He resides in Peoria, AZ with his wife, Neena, and their two sons, Shiv and Soham.
