The increasing trend of multigenerational travel is changing the face of the hotel industry, with major hotel chains launching residential-style accommodation options to lure families and larger groups. With over 40% of families planning vacations that include three or more generations, there is a huge demand for large, professionally managed properties. In this regard, major hotel chains such as Marriott and Hilton are launching new residential-style offerings that blend the comforts of home with the services of a hotel, thus threatening the competitiveness of short-term rental services such as Airbnb.
The Rise of Multigenerational Travel
Multigenerational travel has become a significant trend in the tourism industry, with families seeking more flexible, comfortable, and spacious accommodations. This type of travel often involves multiple generations, such as grandparents, parents, and children, traveling together to create lasting memories. The need for larger living spaces with amenities suited to diverse age groups has led travelers to seek out options that provide both privacy and communal spaces.
Hotels, traditionally known for offering smaller rooms for individual guests, are adapting to this demand by providing larger, apartment-style accommodations that cater to these specific needs. With the rise of Airbnb and other home-sharing services, the hotel industry is responding by offering residential-style units that blend the flexibility of short-term rentals with the professional services and consistency of hotel stays.
Marriott Bonvoy’s New Residential Model: Flats by Marriott Bonvoy
Marriott International has entered the residential market with the launch of Flats by Marriott Bonvoy, its first for-sale multigenerational residential product. The new residences, located at Ambar Residences in Orlando, mark Marriott’s expansion into the U.S. and Canadian markets. These properties offer spacious living areas with full kitchens and flexible sleeping arrangements, making them ideal for families or larger groups.
The model is designed to offer the benefits of short-term rentals, such as the ability to cook and live like a local, while maintaining the level of service and consistency that Marriott is known for. Guests have access to professional housekeeping, concierge services, and other hotel-like amenities that ensure a comfortable stay without compromising on convenience. This offering presents an attractive option for families seeking a home-like environment with the reassurance of professionally managed services, catering to travelers who value both autonomy and support.
Hilton’s Apartment Collection Expands Globally
Hilton is also expanding its reach into the residential space with the launch of its Apartment Collection. With over 10,000 apartment-style units currently available globally, Hilton is positioning itself to compete with platforms like Airbnb by offering long-term, flexible stays in fully furnished apartments. These properties feature chef-ready kitchens, living areas, and 24/7 on-site staff to provide a blend of residential flexibility and hotel services.
The Apartment Collection’s growth is further fueled by Hilton’s plan to expand by adding up to 3,000 more units through partnerships and franchise agreements. This expansion reflects a growing recognition of the demand for longer stays, particularly among business travelers, families, and tourists looking for more space and convenience than traditional hotel rooms provide.
Hilton’s emphasis on providing a fully serviced experience, combined with the flexibility of residential-style accommodations, is gaining traction among travelers seeking more than just a place to sleep. The availability of on-site staff ensures that guests have the assistance they need, while the well-equipped kitchens and comfortable living spaces encourage extended stays, making it an appealing option for travelers who want to feel at home while away from home.
Impact on Airbnb and the Short-Term Rental Market
The rise of residential-style hotel offerings comes at a time when Airbnb is facing increased competition. In Q4 2025, Airbnb reported a significant decline in profits, with a $120 million year-over-year profit decrease. The growing presence of hotel brands in the residential market is contributing to this decline, as travelers increasingly seek the benefits of professionally managed accommodations without the unpredictability that can sometimes come with peer-to-peer rental platforms.
While Airbnb remains a popular choice for many travelers, particularly those seeking unique or off-the-beaten-path properties, the new hotel residential offerings are providing a direct challenge to Airbnb’s dominance. Hotels like Marriott and Hilton are leveraging their established reputations for quality service, consistency, and customer support to attract travelers who may have previously turned to Airbnb for larger, home-like spaces.
The Future of Short-Term Rentals and Hotel Industry Competition
As hotel brands continue to innovate and expand their residential offerings, the landscape of short-term rentals is likely to evolve. The shift towards larger, serviced spaces indicates a move away from traditional hotel rooms and toward more flexible, apartment-style units that meet the needs of modern travelers. This evolution caters to families, business travelers, and groups looking for a home-like experience with the assurance of professional management. As hotel chains continue to adapt to the evolving needs of travelers, we can expect to see even more innovation in the way accommodations are offered, ensuring that the future of both short-term rentals and hotel stays caters to a wide range of preferences and travel styles.
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