Apartment-style Hotel Market Size, Share, Growth, And Industry Analysis by Type (Studio, 1-Bedroom, 2-Bedroom, Luxury Suites) by Application (Business Travelers, Tourists, Extended Stay, Relocation) Forecast From 2025 To 2033

•   
•   
  

  Request a Free sample to learn more about this report

    

APARTMENT-STYLE HOTEL MARKET OVERVIEW

The global Apartment-style Hotel Market size was valued at USD 48.16 billion in 2025 and is expected to reach USD 82.857 billion by 2034, growing at a CAGR of about 6.13% from 2025 to 2034.

The Apartment-style Hotel or Serviced Apartment provides the convenience of home and hotel amenities in one package and services business tourists and transient visitors. The industry is developing exponentially because of the demand for flexible, expansive, and affordable accommodations. The facilities provided are kitchens, living rooms, and weekly housekeeping at most such places, so they are perfectly suited for long-term stays. For effective management of operations, bookings, and guest services, specific apartment-style hotel market software is used. The software enables automation of reservations, billing, housekeeping, and customer relationship management to enhance the guest experience and operational effectiveness.

GLOBAL CRISES IMPACTING APARTMENT-STYLE HOTEL MARKET

COVID-19 IMPACT

Apartment-style Hotel Industry Had a Negative Effect Due to reduced bookings, revenues, and investments during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The apartment-style hotel industry was severely hit by the COVID-19 pandemic, with bookings and revenues plummeting tremendously. Lockdowns, travel bans, and suspended corporate travel severely lowered demand for long stays. Certain properties were compelled to stay closed for a long duration or run on low occupancy rates, incurring financial hardships. Health and safety uncertainty also deterred long stays, particularly from overseas tourists. Overall, the market lost substantial amounts of money, with delayed investments and operational reductions becoming the industry norm.

LATEST TRENDS

Market growth is driven by sustainability, smart tech, and hybrid spaces

The apartment hotel industry is witnessing a number of changing trends, with sustainability being the overriding issue. Operators are adopting more green initiatives, including energy-efficient construction, waste minimization, and utilization of renewable resources, to accommodate the increasing need of environmentally aware tourists. Such action not only complies with international sustainability objectives but also boosts the market value of such assets. Moreover, utilization of smart technologies, creation of hybrid spaces to accommodate living and working needs, and focus on customized guest experiences are all driving the future for apartment-style hotels. Of these, the focus on sustainability is dominant, which is part of an industry-wide transition towards sustainable and responsible hospitality.

•   
•   
  

  Request a Free sample to learn more about this report

    

APARTMENT-STYLE HOTEL MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Studio, 1-Bedroom, 2-Bedroom & Luxury Suites

• Studio: Studio apartment-style hotels provide a compact, one-level living area suited for single travellers or couples. They usually include an en-suite bedroom, living area, kitchenette, and en-suite bathroom. Studios are known to be cost- and space-efficient. This is most suitable for business visitors and cost-sensitive clients who prefer affordable but warm accommodations.
• 1-Bedroom: 1-bedroom rooms have separate sleeping and living areas and more privacy and space than studios. They are most appropriate for long-stay or repeat guests who require a homier setup. The segregation is most appropriate for couples or single families in preparation for reduced rates in addition to enhanced convenience. Other facilities typically consist of fully equipped kitchens and laundry facilities in all the rooms.
• 2-Bedroom: 2-bedroom apartment-style hotels accommodate groups, families, or business travellers who need room and convenience. These rooms often feature a shared living area and two bedrooms and are perfect for longer stays. They offer an economic option to the expense of leasing multiple hotel rooms. This is also a favourite among corporate travellers and vacationing families.
• Luxury Suites: Luxury suites are the upscale side of apartment-hotels that provide upscale amenities and spacious living space. They can be of designer design with high-tech equipment and come with free services like concierge or room service. Luxury suites are for high-end travellers or business executives who prefer luxury discreetly. Luxury extended-stay hotels are highly sought after, especially in city and business districts.

By Application

Based on application, the global market can be categorized into Business Travelers, Tourists, Extended Stay & Relocation

• Business Travelers: Business travellers are an important application segment for apartment-style hotels because they prefer the convenience and comfort of business travel. The hotels have work areas, efficient internet access, and proximity to business hubs. Corporate guests are attracted by extended stays and home-like amenities such as kitchen facilities. Corporates reserve these hotels for executives on short- and medium-term assignments.
• Tourists: Tourists favour apartment-style hotels in terms of room, privacy, and economy over conventional hotels. Apartment-style hotels enable customers to prepare meals and have the comfort of home while on the move. Common living areas are especially worth it to families and group tourists. They became trendy in urban and vacation spots worldwide.
• Extended Stay: Extended stay visitors, like consultants or contract employees, need a place to stay for a month or longer, and apartment hotels are perfect for them. The rooms have reasonable prices for extended periods of time and home-style amenities. Daily housekeeping, in-building laundry, and full kitchens add to convenience for long-term stay guests. The segment has experienced consistent growth from its combination of comfort and cost savings.
• Relocation: Families and individuals moving to a new metropolitan city also employ apartment-style hotels as temporary housing during the relocation process while they seek a new permanent place to live. These types of accommodations give stability, spaciousness, and minimal amenities during the relocation process. Relocation guests enjoy freedom of lease terms and fully furnished living areas, benefiting from convenience in a new home situation. This segment is most active in high employment mobility and international assignment metropolitan regions.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Market growth is fuelled by demand for extended stays and remote work

One prime reason is growing demand for longer-stay facilities from business travellers, relocation residents, and long-duration tourists. Apartment-style hotels' home-like environment with a kitchen, washer/dryer, and living space is more inviting for extended stays beyond a few nights compared to traditional hotel rooms. The accommodations are affordable and more inviting, particularly to guests staying weeks or even months. Remote work popularity and short-term assignments also drove this demand.

Market growth is driven by rising business travel and corporate demand

Growing business travel worldwide is a prime driver, generating steady demand for roomy, comfortable, and practical accommodations. Apartment hotels favour corporate clients with facilities such as high-speed data access, work areas, and proximity to business canters. Corporates utilize such properties to accommodate staff on prolonged assignments or training programs. Rising worldwide business activities maintain this segment's expansion.

Restraining Factor

Market growth is hindered by high costs and occupancy uncertainties

One of the major restraints of the Apartment-style Hotel Market Growth is the huge front-end investment and operational expense. Construction and operation of such properties demand a lot of money to build, equip, and sustain constant services such as housekeeping and maintenance. Smaller operators will not be able to match seasoned hotel brands with similar features. Moreover, unpredictable occupancy rates, particularly during the off-season, can affect profitability and viability.

Market growth is boosted by digital nomadism and remote work demand

Opportunity

A fresh growth area within the apartment-style hotel market is presented in the form of digital nomadism and remote working culture. With more professionals working from anywhere, there is an increased need for flexible and extended stays with comfort and productivity. Apartment-style hotels can take advantage of this by introducing co-working spaces and high-speed internet access. Marketing packages and targeted campaigns specifically for remote workers can further add to this. This shift presents a strong growth potential in both urban and more rural scenic areas.

Market growth is challenged by competition from Airbnb and operational complexity

Challenge

One of the biggest challenges faced by the apartment-style hotel sector is intense competition from online platforms like Airbnb and other short-term stay services. The alternative is typically more adaptable and regionalized at affordable prices. Therefore, apartment-style hotels are required to constantly spend on marketing, technology, and service quality in order to differentiate themselves. Maintaining consistent service levels in multiple units and locations also adds to operational complexity.

•   
•   
  Request a Free sample to learn more about this report

    

APARTMENT-STYLE HOTEL MARKET REGIONAL INSIGHTS

• North America(U.S. COMPULSORY)

Market growth in North America is driven by corporate travel, technology, and urbanization

North America is the market leader in the apartment-style hotel segment because of its developed hospitality infrastructure and strong demand from corporate and recreational tourists. The high corporate travel in the region and growing interest in extended-stay facilities are mainly responsible for the growth in the market. Technological adaptation and high-end service levels also enhance leadership. The United States Apartment-style Hotel Market is the key driver, fuelled by urbanization, business centers, and elastic accommodation requirements. In North American nations, the United States is at the forefront of both the number of properties and revenue generation in this category.

• Europe

Market growth in Europe is driven by tourism, flexibility, and sustainability

Europe is a significant contributor of the apartment-style hotel space via its strong tourist market and increasing demand for flexible stays. Big cities like London, Paris, and Berlin attract business travellers and long-stay tourists, fuelling market growth. Experience-driven and budget-conscious travellers have also driven serviced apartments into popularity as a practical solution to traditional hotels. Europe's focus on sustainability and protecting historical areas also influences the development of unique, adaptive apartment-style buildings.

• Asia

Market growth in Asia is fuelled by urbanization, tourism, and infrastructure development

Asia drives the Apartment-style Hotel Market Share via fast-paced urbanization, emerging business centers, and rising domestic and international tourism. Major markets include Tokyo, Singapore, and Bangkok, which draw corporate travellers for long stays and expatriates. Middle-class income growth and tourist activity in China and India are also driving demand for homey, flexible accommodations. Further market growth in the region comes from government efforts to increase tourism and support infrastructure.
 

KEY INDUSTRY PLAYERS

Market growth is led by major hotel chains innovating extended stays

Industry operators are largely leading the apartment-style hotel market by setting new benchmarks in design, services, and technology. Chains like Marriott, Accor, and Hilton are expanding their extended-stay presence, introducing internationally known brands with standardized amenities and quality. Operators leverage advanced reservation systems, loyalty programs, and prime sites to win corporate and leisure business. With their established brand presence and capital foundation, they can expand rapidly and embrace innovations like contactless check-in and smart room technologies. By investing in guest experience as well as operational efficiency on an ongoing basis, they fuel market development and create benchmarks for the others.

• Extended Stay America (U.S)
• Home2 Suites by Hilton (U.S)
• Residence Inn by Marriott (U.S)
• Homewood Suites by Hilton (U.S)
• Staybridge Suites (UK)

KEY INDUSTRY DEVELOPMENT

January 2024:  Marriott is opening its first property with this brand, Casa Costera, at Isla Verde Beach, San Juan, Puerto Rico. The property features apartment-style rooms with longer-stay purpose, featuring full kitchens and laundry facilities in the unit. Further, Marriott has made development agreements to introduce this brand into other markets such as Detroit, Michigan; St. Louis, Missouri; Courmayeur, Italy; and Sindalah Island in Saudi Arabia. These moves show Marriott's strategic realignment to cater to those travelers who prefer residential-type of accommodations with services and quality pertaining to its brand.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.