Serviced Apartments Market Size, Share, Growth, and Industry Analysis, By Type (On-site Managed Off-site Managed), By Application (Corporate, Leisure), and Regional Insights and Forecast to 2033

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SERVICED APARTMENTS MARKET OVERVIEW

The global serviced apartments market is anticipated to witness consistent growth, starting at USD 29.92 billion in 2024, reaching USD 32.66 billion in 2025, and climbing to USD 65.95 billion by 2033, with a steady CAGR of 9.18% from 2025 to 2033.

Serviced Apartments Market It provides the comfort and privacy of apartment living but with hotel-like services to the traveler and resident alike. They are usually fully furnished apartments for short-term and long-term settings, including housekeeping, utilities, and 24-hour concierge. Serviced apartments are relatively spacious and flexible, making them a favorite with corporate and family travelers and long-stay clients. The serviced apartment segment has been growing worldwide over the past five years, driven by increased business travel, the emerging culture of remote work, and the need for comfortable, yet affordable, accommodations for longer stays. It has particularly excelled in the metropolitan area and cities with high corporate and leisure travel volumes. Serviced apartments cater to a wide range of clientele, including corporate employees undergoing long assignments, expatriates, and tourists wishing to experience more of an apartment-like feel.

Serviced apartments have gained popularity for long-term stays due to offering home-like comfort with hotel-like amenities. Serviced apartments are spacious, private, and more flexible compared to regular hotels, equipped with fully functional kitchens and separate living spaces, thus ideal for longer stays. They also bring savings over longer periods, as the rates of serviced apartments tend to be much more competitive than those for hotels, which probably goes in favor of growth in this segment.

COVID-19 IMPACT

Post – Pandemic Adaptation in the Serviced Apartment Market

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 COVID-19 pandemic significantly affected the serviced apartments market, with the lockdowns and travel restrictions globally that made many operators incur a low occupancy rate as well as suffer significant revenue losses. However, the market was flexible enough to adapt quickly; with such travel restrictions in place, serviced apartments began to trend towards long-term stays. With such restrictions, focus was placed on servicing business travelers who required long-term accommodations. Operators also emphasized hygiene, with advanced health controls such as high-frequency sanitizing and contactless services to ensure safety-conscious guests. International travel restrictions increased domestic tourism, which was served mostly by serviced apartments for families and travelers who wanted their own safe space rather than a hotel. The social shift with the rise of remote work further contributes to the demands for comfortable, flexible living spaces, making serviced apartments appealing choices for some extended-stay remote workers. Even though the industry was still on its way to recovery, especially in areas that highly rely on tourism and business travel, the market had slowly started to recover, with a growing demand for flexible, health-oriented accommodations in the post-pandemic environment.

LATEST TRENDS

Serviced apartments are the ideal choice for corporate employees' long stays

Serviced apartments are very useful for employees who have long-term assignments, relocations, or project-based work because companies may require such solutions. It is much more comfortable and economical than hotels because serviced apartments are equipped with fully functional kitchens, living spaces, and home-like amenities that provide the perfect balance between convenience and privacy for corporate travelers to work efficiently in a productive and comfortable environment for longer stays. This trend has opened the market, especially in business hubs and major cities around the world.

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SERVICED APARTMENTS MARKET SEGMENTATION

By Type

• On-site Managed - Serviced apartments with on-site management have in-house teams addressing guest services such as housekeeping, security, and maintenance. This ensures quality services and prompt response to guest needs. Long-term guests prefer this type of management because they need immediate assistance and personalized service. Even though effective for building a solid brand experience, on-site management requires high staffing and operation costs.

• Off-site Managed - Off-site managed serviced apartments are managed from a remote location, often by third-party companies, thereby saving money due to centralized management across several properties. While it might take a little more time to respond to some of the services, recent advances in digital and IoT solutions have improved the efficiency of remote management. This model will suit smaller properties or locations that have lower service demands. This model is also a great option for budget-conscious guests.

By Application

• Corporate - It is a primary market for serviced apartments in business hubs, where companies do not mind paying big money and even are willing to commit to long-term assignments and relocations. Amenity-rich options such as kitchens and dedicated workspaces boost comfort for business travelers during longer stays. Corporate travel has been gaining more momentum along with the shift towards flexible "work-from-anywhere" options.

• Leisure - Serviced apartments appeal mainly to leisure tourists, either families or groups, for the ample space offered by such apartments, with respect to privacy and availability of kitchen facilities, making it perfect for extended vacations and family trips at competitive prices. Staycations and work-friendly vacations have also elevated demand among leisure tourists searching for relaxation and productivity within their accommodation.

MARKET DYNAMICS

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

Driving Factors

Increasing Demand for More Flexible Living Arrangements

This is a result of the growing preference for flexible, comfortable, and fully furnished accommodations from the consumer. Business travelers, digital nomads, and remote workers are searching for hotels that provide home-like convenience with hotel-level service. Serviced apartments will be ideal because they offer the flexibility of short-term and long-term stays together with more spacious layouts.

Global Business Travel and Corporate Relocations

Serviced apartments fit well in the corporate market because companies are increasingly going global, and people are being transferred or relocated for extended assignments. This provides business travelers with an affordable, comfortable, and fully equipped place to work and rest. Serviced apartments are preferred for extended stays compared to hotel accommodations this in turn increases the serviced apartments market growth.

Restraining Factor

Higher cost of operation

Serviced apartments require high capital expenditures on property maintenance, employees, and utilities. Properties with on-site management necessitate 24-hour manning to ensure the maintenance of service standards. Even after COVID-19, hygiene standards contribute to high operating costs, meaning there will be a corresponding erosion in profit margins for the operator.

Opportunity

Increased interest in staycations and workcations

The increasing international trips and the new trend of workcations offer an excellent opportunity for serviced apartments. Serviced apartments are well-positioned to cater to the needs of the traveler who wants to work remotely from a comfortable, home-like setting. Reliable internet, workspaces, and flexible stay durations attract this growing market of leisure and business travelers.

Challenge

Competition with Other New Alternative Forms of Accommodations

Alternative accommodations, which include Airbnb and vacation rentals, pose stiff competition to the serviced apartment market as they provide a highly similar "home-away-from-home" experience, mostly at more competitive prices with wider locations. To keep up with such competitiveness, serviced apartment operators must differentiate themselves with better amenities, customer service, and marketing towards high-value, long-term customers.

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SERVICED APARTMENTS MARKET REGIONAL INSIGHTS

• North America

Demand for serviced apartments in North America is driven mainly by demand in the United States. Corporate travel and relocations are growing strong in this region although, ensuring the United States serviced apartment market remains active. The high occupancy rates of New York and San Francisco cities persist, as business travelers and digital nomads strongly prefer flexible, long-term stays.

• Europe

Serviced apartments are gaining popularity fast as corporate travelers and leisure visitors prefer to stay in these apartments as an alternative rather than their traditional counterparts in Europe, where London, Paris, or Berlin remains at the core of these needs, the operator getting high demand over work-friendly spaces and spacious ones. This trend in sustainability and green hospitality also heavily influences the European market.

• Asia

serviced apartments market share in Asia is increasing fast, especially in bigger business centers in Singapore, Hong Kong, and Tokyo. Corporate demand is likely to be high in all of these cities. business travelers and longer-stay tourists are continuously driving demand in the region. Another trend to look out for is luxury and premium serviced apartments targeting more affluent travelers seeking more upscale, full-service accommodations with easier access to urban amenities.

KEY INDUSTRY PLAYERS

Top industry players' strategies and innovation

key players within serviced apartments use several strategies aimed at improving their established and strong position while allowing various guest preferences to cater appropriately to them. Several operators strive to upgrade premium offerings through loyalty programs, among many others, specifically dedicated towards long-term corporate stays; others focus on highly cutting-edge innovations such as introducing contactless check-ins with AI-enabled services directed to enhance convenience and ensure even greater safety. Environmental programs are also high profile and, in some of them, companies add environment-conscious practices and energy-positive structures to attract green customers. Moreover, some have incorporated wellness, including health-related facilities, gym areas, and rest halls designed for health-conscious consumers some have also become investment targets for digital nomad-friendly features such as free internet and co-working desks. The flexible booking and selective online marketing models easily ensure both corporate and leisure reach for the companies involved. By changing according to these trends and improving the experience for customers, industry players ensure their competitiveness within a very dynamic market.

List of Top Serviced Apartments Market

• Roomspace (United Kingdom)
• Roomzzz Aparthotels (United Kingdom)
• Numa (United States)
• The Ascott Limited (Singapore)
• Edgar Suites (France)
• Locke (United Kingdom)
• Aparthotels Adagio (France)
• Cheval Collection (United Kingdom)
• SACO (United Kingdom)
• Sonder (United States)
• Blueground (United States)
• Q Apartments (United Kingdom)
• Staycity (Ireland)

KEY INDUSTRY DEVELOPMENT

August 2024: Ascott Limited announced its expansion in India, and focused on emphasizing its commitment to increasing its presence in the region. It will increase its presence with several new properties across key cities by leveraging the growing demand for serviced apartments, which is driven by business travel and long-term stays. This strategic move aligns with the overall expansion plan of Ascott towards the emerging market of India which holds a significant stronghold in one of the world's economies.

REPORT COVERAGE

The serviced apartments market is analyzed deeply by market size, segmentation, trends, and dynamics in this report. Detailed insight on regional, competitor analysis, and major developments are also included. It draws attention to drivers, challenges, and opportunities that outline the market landscape, and thus, it is highly useful for stakeholders to make well-informed decisions.