.Hotel development is entering a more flexible, location-led phase. Extended-stay demand is changing how developers approach room design, food service and day-to-day hotel operations. At the same time, the rapid growth of data centres is creating new pockets of accommodation demand near major infrastructure projects.
For hotel owners and operators across Yorkshire, the North East and the North West, this presents a valuable opportunity. It also raises important questions about staffing, long-term demand and the type of guest experience each property should deliver. Properties that adapt their offer and workforce to meet these evolving needs will be better placed to attract extended-stay guests and support the growing number of professionals working on major regional projects.
The link between data centres and extended-stay demand
Data centre construction requires large teams of contractors, engineers, technical specialists, consultants, security professionals and suppliers. Many of these workers travel from outside the local area and may need accommodation for several weeks or months. These long-term assignments are contributing to rising demand for extended-stay properties.
This makes extended-stay hotels a natural fit.
Unlike a traditional short-break guest, a project worker may need:
- A comfortable room for a longer visit
- Reliable Wi-Fi and a practical workspace
- Parking and easy transport links
- Laundry facilities
- Flexible breakfast and evening dining
- A place to relax outside working hours
- Consistent service from a familiar team
The opportunity is already attracting attention in the United States. Industry reporting suggests that data centre construction is creating significant extended-stay demand in several markets, particularly during the building and commissioning stages. However, the impact is not uniform. Some hotels close to data centre projects have seen strong demand, while others have experienced little change. (constructiondive.com)
This distinction matters. A proposed data centre may support hotel demand during construction, but the long-term opportunity depends on the wider local economy, transport infrastructure, nearby businesses and future development plans.
Why developers are considering longer-stay formats
Extended-stay accommodation sits between a traditional hotel and a serviced apartment. Guests may stay for a few nights, several weeks or even months because of work, relocation, construction, healthcare, medical tourism or business requirements. These long-term stays are increasingly appealing to corporate travelers, business professionals, long-term tourists and affluent travelers seeking greater convenience.
For developers, the model offers several potential benefits. Longer stays can create more predictable occupancy, reduce the pressure for daily room turnover and support a more consistent relationship between the hotel and its guests.
The extended-stay format can also support a wider range of markets, including:
- Construction and infrastructure teams
- Corporate project workers
- Technology specialists
- Relocating professionals and families
- Healthcare workers
- Consultants and contractors
- Event and production crews
- Leisure guests seeking more space and flexibility
The format is becoming a significant part of the wider hotel development pipeline and the global extended stay hotel market. A market overview from JLL reported that the US select-service and extended-stay sector recorded strong demand in 2024, with RevPAR reaching a record high and investment activity remaining strong. (jll.com) The global extended stay hotel market size is also attracting attention as operators respond to the growing need for home-like accommodation options. Other reports, including analysis from Grand View Research, reflect the wider global market for flexible accommodation.
For UK developers, the lesson is not to copy another market directly. Instead, it is to understand how the same principles could work in regional locations where major employment, energy and infrastructure projects are creating new travel patterns.
Data centre development is spreading beyond established markets
London and the South East remain important data centre locations. However, development interest is also spreading into regional markets where land, power infrastructure and connectivity may offer advantages.
Manchester is already recognised as a major secondary technology location. The North East is also attracting interest because of its renewable energy potential, grid connections and available development space. (dishhospitality.co.uk)
This could create new opportunities for hotels in areas that have traditionally relied on leisure, events or local business travel. It may also support substantial growth in the UK market as regional investment develops.
A hotel near a major technology or infrastructure project may serve a varied guest base, including:
- Data centre construction teams
- Electrical and mechanical contractors
- Infrastructure engineers
- Technology consultants
- Project managers
- Equipment suppliers
- Visiting executives
- Professionals relocating for work
- Families staying near a new employment hub
For privately owned hotels, this may provide an opportunity to build partnerships with local businesses and project contractors. Nearby restaurants, gastro pubs and event spaces may also benefit from increased activity from international business travel, corporate relocations and long-term tourists. The wider visitor economy, including tourist accommodations, may also see benefits as new employment hubs attract workers and visitors.
Extended-stay design needs to support real daily life
The traditional hotel model often focuses on short visits, quick room turnover and standardised service. Extended-stay guests have different expectations.
They may value practical comfort more than formal luxury. A well-designed property should make it easy for guests to work, eat, rest and manage daily routines without feeling as though they are living out of a suitcase. Extended-stay accommodations should offer home-like amenities that support real daily life.
Important features may include:
- Kitchenettes or small food preparation areas
- Equipped kitchens in suitable room types
- Larger workspaces
- Strong and reliable Wi-Fi
- Comfortable seating
- Laundry facilities
- Convenient parking
- Flexible check-in options
- Communal areas
- Fitness or wellness facilities
- Storage for longer visits
- Clear local travel information
Food and beverage provision also needs careful planning. A guest staying for three nights may enjoy a full restaurant meal each evening. A guest staying for six weeks may want more variety and flexibility.
A successful offer could include:
- Fast and healthy breakfast choices
- Grab-and-go meals
- Simple evening menus
- Room service for late arrivals
- Communal dining areas
- Rotating local specials
- Catering for project meetings
- Takeaway options for shift workers
This approach requires a kitchen and front-of-house team that can respond to changing demand. Staffing may need to increase when new project teams arrive, then adjust when occupancy settles into a more predictable pattern.
Staffing must be part of the development plan
Recruitment should be considered from the beginning of a hotel development project. It should not be left until a few weeks before opening.
A property may have an excellent location and a strong demand forecast, but the business case can still weaken if it cannot recruit skilled chefs, managers and front-of-house professionals.
An extended-stay hotel may use fewer team members per occupied room than a traditional full-service property. However, the roles can be broader. Employees may need to support guest relationships, casual dining, events, housekeeping coordination and long-stay service for corporate professionals.
A data centre-related hotel may also experience sharp changes in demand. Construction teams could create high occupancy for several months, followed by a smaller but consistent market of maintenance professionals and technical staff.
This makes workforce flexibility essential.
A balanced staffing plan may include:
- Permanent general managers and department heads
- Permanent executive chefs or kitchen leaders
- Temporary chefs during opening periods
- Front-of-house staff for group arrivals and events
- Cross-trained employees who can support several departments
- Flexible teams for seasonal and project-based demand
DISH Hospitality supports hotels, restaurants and hospitality venues with tailored temporary and permanent recruitment across Yorkshire, the North East, the North West and beyond. Its temporary recruitment service can help businesses secure chefs, managers and front-of-house professionals for short-term needs, while its permanent recruitment service supports long-term team building. (dishhospitality.co.uk)
Temporary staffing can protect the guest experience
New hotels often face a difficult period between opening and reaching a stable operating rhythm. Occupancy can change quickly, teams may still be learning procedures and local recruitment can take longer than expected.
Temporary staffing provides a practical way to protect service standards while the permanent team is being established.
It can provide cover for:
- Hotel openings
- Construction workforce arrivals
- Seasonal peaks
- Corporate group bookings
- Restaurant launches
- Events and private dining
- Staff sickness
- Annual leave
- Sudden changes in occupancy
The value is not only speed. Experienced temporary chefs and front-of-house professionals bring knowledge from different hotels, restaurants, resorts and gastro pubs. They can help maintain consistency while new employees are recruited, trained and integrated into the wider team.
This is especially important for extended-stay properties. Guests who remain in the hotel for several weeks quickly notice changes in service quality. Familiar faces, reliable food and responsive support can have a direct impact on reviews, repeat bookings, extended stay bookings and corporate relationships. A consistent experience can also support employee satisfaction for businesses managing corporate travel policies.
The risks developers need to assess
Data centre proximity may be a valuable demand driver, but it should not be treated as a guarantee of occupancy.
Before committing to a new hotel, developers should assess:
- The project timetable
Construction demand may be high at first but reduce after completion. - The local accommodation market
Existing hotels, serviced apartments, extended stay options and short-term lets will affect occupancy and achievable rates. - Transport access
Guests working on industrial or technology sites need reliable routes, parking and practical travel times. - The local workforce
A new hotel may compete with data centre projects and construction firms for electricians, engineers, cleaners and other skilled workers. - Food and beverage demand
Longer-stay guests may support restaurants, cafés and private dining, but the offer must reflect local habits and working patterns. - Staff availability
The project needs a realistic plan for recruiting chefs, managers and front-of-house staff. - Future demand diversity
The strongest developments can serve project workers, corporate guests, leisure travellers, local customers and events. - The wider community impact
Developers should consider transport, housing, local services, energy use and the long-term relationship with nearby communities.
A data centre may create a major short-term increase in demand, but the most resilient hotel developments will be built around several customer segments. Online marketplaces and the right booking channel may also help properties reach both corporate and leisure audiences.
What this means for northern hospitality businesses
The growth of extended-stay accommodation and data centres could reshape hospitality in regional locations. The rising demand is also encouraging established operators, including Staycity Group, SACO and IHG Hotels, to consider how extended-stay properties can serve different markets.
Hotels may need to think more carefully about how they serve guests who work unusual hours, stay for longer periods or arrive as part of large project teams. Restaurants and gastro pubs may see increased demand from contractors, consultants and visiting professionals. Event spaces may also benefit from team meetings, training days and project celebrations.
For hospitality businesses, this creates a need for greater operational flexibility. A fixed staffing model may not be enough when demand changes from week to week.
Businesses that plan early can improve their resilience by combining:
- A core permanent team
- Trusted temporary staff
- Clear workforce forecasting
- Flexible menus
- Cross-training
- Strong local partnerships
- Reliable recruitment support
A more flexible future for hotel development
Extended-stay demand and data centre growth are encouraging developers to look beyond the standard overnight hotel model.
The opportunity lies in creating properties that can respond to changing demand, support longer visits and serve the wider business community. That requires more than adding bedrooms. It involves planning the guest journey, food service, staffing model and local partnerships from the start.
The strongest developments will combine a well-researched location with adaptable design, sustainable operations and a reliable workforce plan.
For hotel owners and operators across Yorkshire and northern England, recruitment should be part of that conversation from day one. With the right blend of permanent expertise and flexible temporary support, properties can be ready for opening day and better prepared for the changing demand that follows.
Speak to DISH Hospitality about temporary and permanent hotel staffing.
