Studies Predict Boom In Extended Stay Market

While analysts called the extended stay boom "all hype" at New York University's Hotel Investment Conference last June, recent studies have given the trend a green light.

"Those analysts were wrong," said Bjorn Hanson, hospitality industry chairman at Coopers & Lybrand. "The people at the conference would never stay in a $30-a-night property, so they couldn't imagine there could be much depth of demand."

One recent study, by Schroder Wertheim & Co. Inc., heralded extended stay as one of the industry's "hottest" markets over the next few years.