Last September, Choice Hotels International bought Suburban Stay, an apart’hotel brand, for 10.5 million dollars. This was one of many acquisitions, but it attests perfectly to the current interest in the extendedstay market. This market imposed itself in 2005 as the most dynamic branch of the hotel industry in terms of new openings. And everything leads to believe that 2006 will follow the same scenario. If it truly is a niche market, then it’s a cosy niche that many want to get into.The opening of two complexes ideally located right next to the city’s large international business centre (Sukhumvit) is imminent. “The Residence label designates full-service apartments for businessmen and offer the same level of standing and facilities as our Sofitel brand,” explains Michael Issenberg, general manager of the group for the Asia-Pacific region. The concept will next be declined as “Mercure Residence” and “Novotel Residence” throughout Asia. Still in Bangkok, Kempinski will open its own mixed-use complex with both hotel rooms and equipped apartments (including duplexes and suites with gardens) in the Spring of 2008. The rise of China and India as economic superpowers also implicates high expectations for the years to come. Contracts and professional travel will multiply exponentially. In India, the extended stay segment represents only 11% of the global offer, which is already insufficient for meeting demand. It is clear that extended stays will soon no longer be limited to a small, privileged and little-known niche spinning developers’ dreams, but more like a vast mature and unavoidable market. Nevertheless, a good share of development remains to be done on new markets, guaranteeing the “gold rush” will continue a few more years. It also offers fine opportunities for those who are able to decline the concept in the right way in the right place.The reasons for this...