Hotels expand residential offerings to compete with Airbnb
Branded apartment-style stays signal a strategic shift in hospitality competition
Global hotel brands are increasingly moving into residential-style accommodations to capture demand traditionally served by short-term rental platforms such as Airbnb. Rising interest in multigenerational travel and longer stays is driving demand for larger, professionally managed living spaces. Major groups including Marriott and Hilton are launching apartment-like products that combine home comfort with hotel services. This trend suggests a gradual convergence between traditional hospitality and short-term rental models.
Key takeaways
- Multigenerational travel demand: More families are travelling together across generations, increasing demand for larger, flexible accommodation formats.
- Hotel brand expansion: Major chains like Marriott and Hilton are introducing residential-style offerings that blend apartment living with hotel services.
- Professionalised rental concept: These products emphasise consistent service, housekeeping, and concierge support alongside home-style amenities.
- Strategic competitive response: Hotels are targeting Airbnb’s core market by offering similar space and flexibility with stronger operational reliability.
- Market pressure on Airbnb: Declining quarterly profits at Airbnb highlight intensifying competition from branded hospitality alternatives.
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