Global Serviced Apartment Market Outlook
Revenue, 2024
$143B
Forecast, 2034
$526B
CAGR, 2024 - 2034
13.91%
The Serviced Apartment industry revenue is expected to be around $163.0 billion in 2025 and expected to showcase growth with 13.91% CAGR between 2025 and 2034. Offering a mix of opulence and practicality while allowing personalization options and flexibility; Serviced Apartments are reshaping how people travel and relocate by catering to the desire, for an atmosphere paired with top notch professional services.
Essentially defined as a furnished apartment suitable for short or extended stays is the concept of a Serviced Apartment. It is characterized by offering privacy and ample living space while providing flexibility and practicality through amenities like well equipped kitchens and laundry facilities to establish a comfortable home like ambiance away, from home.
Market Key Insights
- The Serviced Apartment market is projected to grow from $143.1 billion in 2024 to $526 billion in 2034. This represents a CAGR of 13.91%, reflecting rising demand across Extended Stay Provisioning, Corporate Housing and Leisure and Tourism.
- Ascott Limited, Bridgestreet, Frasers Hospitality are among the leading players in this market, shaping its competitive landscape.
- U.S. and UK are the top markets within the Serviced Apartment market and are expected to observe the growth CAGR of 12.5% to 16.7% between 2024 and 2030.
- Emerging markets including Vietnam, Nigeria and Colombia are expected to observe highest growth with CAGR ranging between 9.7% to 14.6%.
- Transition like "Rise of the Digital Nomad is expected to add $49.8 billion to the Serviced Apartment market growth by 2030
- The Serviced Apartment market is set to add $383 billion between 2024 and 2034, with manufacturer targeting Tourists & Students Target Population projected to gain a larger market share.
- With Increasing demand for long term accommodation, and Adoption of technology in serviced apartment market, Serviced Apartment market to expand 268% between 2024 and 2034.
Opportunities in the Serviced Apartment
The growing trend of work and the increasing number of digital nomads are creating new possibilities for the serviced apartment industry to expand its offerings with extended stay options and office equipped living spaces as well, as shared coworking areas.
Growth Opportunities in North America and Europe
North America Outlook
The serviced apartment industry in North America is experiencing growth due to the rise in business trips and tourism activities in the region. The competitive landscape is influenced by leading companies and ongoing technological progress. Nevertheless there are still prospects, in numerous medium sized and smaller urban areas.
Europe Outlook
In Europe's Serviced Apartment sector thrives on demand in key cities such as London, Paris and Berlin with a blend of local and global chains vying for business. Navigating shifts and property rights poses hurdles and chances for growth in this industry. The rising preference, for friendly lodging could pave the way for a fresh market segment to emerge.
Market Dynamics and Supply Chain
01
Driver: Increasing Demand for Long Term Accommodation, and Changing Guest Expectations and Preferences
The increase in corporate travel demands well as long term work placements and international relocations has also led to a rising need for serviced apartments that cater to extended stays. These equipped apartments, with top notch facilities provide a home like environment and are also becoming increasingly popular among travelers. The changing desires and needs of employees and contemporary travelers are also key drivers pushing the serviced apartment industry ahead in growth and development. The desire for rental agreements nurturing spaces, for pets, social gathering spots and health focused amenities strongly impact the evolving landscape of serviced apartments.
The incorporation of technology into serviced apartments has also greatly improved the user experience by offering contactless check ins and digital concierge services along with high speed Wi Fi and modern tech equipped rooms that are also crucial, for the growth of the serviced apartment sector.
The incorporation of technology into serviced apartments has also greatly improved the user experience by offering contactless check ins and digital concierge services along with high speed Wi Fi and modern tech equipped rooms that are also crucial, for the growth of the serviced apartment sector.
02
Restraint: High Operational Costs
Serviced apartments differ from ones by requiring a range of extra amenities and services such as concierge assistance and regular housekeeping along with utilities like electricity and water usage; all of these contribute to higher operational expenses that could pose a challenge for market expansion since not all providers can manage these added costs without potentially making the apartments too costly, for most customers.
03
Opportunity: Serviced Apartment Market Meets Millennials and Gen Z and Customized Living Experience
The newer generations are leaning towards serviced apartments than sticking to traditional hotels more and more these days due to their need for flexibility and space as well as the value they offer for the money spent. This shift in preference presents an opportunity for the serviced apartment industry to attract untapped customers who seek such accommodations. Businesses that can adapt well to these changing preferences and foresee their needs are expected to see a rise, in demand and notable expansion.
With the increasing desire for individuals to find living spaces that align with their lifestyle preferences comes a rise in the potential for serviced apartments to provide customized services tailored to meet their needs and preferences. This may involve versatile interior designs along, with smart home functionalities or unique amenities that cater to specific interests including pet friendly options and environmentally sustainable solutions or creatively themed decorations.
With the increasing desire for individuals to find living spaces that align with their lifestyle preferences comes a rise in the potential for serviced apartments to provide customized services tailored to meet their needs and preferences. This may involve versatile interior designs along, with smart home functionalities or unique amenities that cater to specific interests including pet friendly options and environmentally sustainable solutions or creatively themed decorations.
04
Challenge: Stiff Competition from Hotels and Other Rental Services
The serviced apartment sector is encountering rivalry from well known hotels and, up and coming online rental platforms. They frequently present rates, lucrative loyalty programs and robust promotional campaigns giving consumers numerous appealing choices.
Supply Chain Landscape
1
Real Estate Sourcing & Development
Brookfield Properties
CapitaLand
2
Interior Design & Furnishing
IKEA
Pottery Barn
3
Service Management & Staffing
Hilton Worldwide
Marriott International
4
Marketing & Customer Acquisition
Google Ads
Facebook Advertising
1
Real Estate Sourcing & Development
Brookfield Properties
CapitaLand
2
Interior Design & Furnishing
IKEA
Pottery Barn
3
Service Management & Staffing
Hilton Worldwide
Marriott International
4
Marketing & Customer Acquisition
Google Ads
Facebook Advertising
*The illustration highlights the key stakeholders within the supply chain ecosystem.
Applications of Serviced Apartment in Extended Stay Provisioning, Corporate Housing & Leisure & Tourism
Extended Stay Provisioning
Staying in serviced apartments is an option for people who need to stay somewhere for a long time because they offer home like comforts such as a fully equipped kitchen and separate living space with laundry facilities included to make guests feel at home and ease the challenges of being away from home for an extended period of time. Popular names in this sector, like Marriott Executive Apartments and Ascott Limited are known for their top notch accommodations designed for stays that offer luxury and comfort in various locations worldwide.
Corporate Housing
The corporate housing industry heavily relies upon serviced apartments to provide cozy lodging options for employees relocatin gor embarking upon lengthy business travels. They provide an convenient setting that fosters productivity for working professionals while also allowing them to unwind. Oakwood and BridgeStreet are known companies, in the market that offer top notch corporate housing services worldwide.
Leisure and Tourism
Serviced apartments are a choice in the travel and tourism sector as they offer tourists extra room to move around comfortably and enjoy some privacy compared to typical hotel accommodations. These apartments are usually situated in areas near tourist hotspots and convenient transportation options to give visitors a cozy home like setting when theyre away from their own homes. Known names like Frasers Hospitality and Citadines Apart’hotel are top players in this field by offering top notch lodging options, for leisure travelers across the globe.
Recent Developments
December 2024
Marriott International has broadened its range of apartments with the purchase of 20 additional sites, in Asia and Europe.
October 2024
Hyatt Residences introduced three serviced apartments, in New York City, London and Sydney catering to upscale business travelers and wealthy tourists.
August 2024
AccorHotels has formed a partnership with Airbnb to blend traditional hospitality, with contemporary and adaptable serviced apartment offerings.
In years the serviced apartment industry has seen steady expansion due to the growing global business landscape and the surge in international travel for work and leisure purposes alike. A significant trend in the market involves shifting from the idea of serviced apartments, to a more lifestyle focused perspective.
Impact of Industry Transitions on the Serviced Apartment Market
As a core segment of the Tourism & Entertainment industry,
the Serviced Apartment market develops in line with broader industry shifts.
Over recent years, transitions such as "Rise of the Digital Nomad and Emergence of Eco-Friendly Initiatives have redefined priorities
across the Tourism & Entertainment sector,
influencing how the Serviced Apartment market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
"Rise of the Digital Nomad
With the rise of work as a common practice thanks to technological progress and the impacts of the global pandemic in recent times; there has been a noticeable surge in the popularity of serviced apartments. The market is witnessing an influx of nomads who are looking for accommodations that offer flexibility and comfort with all necessary amenities included during their journeys. These individuals tend to gravitate towards the atmosphere provided by serviced apartments, over brief hotel stays; thereby contributing to the growth of this market segment. This industry transition is expected to add $49.8 billion in the industry revenue between 2024 and 2030.
02
Emergence of Eco-Friendly Initiatives
The industry of serviced apartments is embracing sustainability as consumer awareness grows in this area prompting providers to adopt eco practices such as energy efficient settings, with green amenities and recycling initiatives aimed at reducing water usage.