I think that a big part of the value prop for these places isn’t so much the lower price, but the fact that the kitchenette reduces the expenses associated with restaurants/eating. For a business that is sending an employee to another city for a month, reducing a $50-$60 per day meal allowance to a $200/week per diem can result in significant sabings. Also, these places tend to have a slightly larger laundry room than a conventional hotel.