Serviced Apartment Market Key Takeaways
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In 2023, North America led the serviced apartment market, capturing the largest market share of 38%.
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Europe is anticipated to register a double-digit CAGR of 12.32% over the forecast period.
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The short-term (<30 nights) segment represented the highest market share of 66% by type in 2023.
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The long-term (>30 nights) segment is forecasted to grow at the fastest CAGR of 13.94% during the projection period.
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In terms of end-use, the corporate/business traveler segment dominated with a 53% market share in 2023.
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The expats and relocators segment is projected to record a significant CAGR of 14.25% throughout the forecast timeframe.
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The direct booking segment held the top share of 49% by booking mode in 2023.
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Corporate contracts in booking mode are growing at an impressive CAGR of 14.22% during the estimated period.
Serviced Apartment Market Overview
The global serviced apartment market is becoming a strong contender within the hospitality industry. As of 2023, it exhibited strong market leadership in North America and rapid growth in Europe and Asia. This segment appeals to business and leisure travelers seeking a more personalized, home-like stay compared to hotels. With significant market penetration in the short-term rental space, serviced apartments are redefining urban accommodation models.
Serviced Apartment Market Drivers
Key growth drivers include the rising trend of corporate mobility and frequent business travel. Companies are increasingly opting for serviced apartments to house employees during short- and long-term assignments due to their affordability and convenience. Additionally, post-pandemic preferences for privacy, space, and home-like amenities have driven more travelers to explore serviced accommodation over shared or hotel-based options.
Rising migration of the population
The increasing economic growth of several leading countries like the United States, Canada, India, China, Japan, Australia, and others is driving industrialization and urbanization across the countries, which directly accelerates the per capita income of the population. The rising urbanization and the opportunities for better education, employment, lifestyle, and other factors are influencing people to migrate from rural to urban areas, driving the demand for the hospitality industry and boosting the demand for serviced apartments for homely comfort and privacy, which drives the growth of the market.
Serviced Apartment Market Opportunities
There is notable opportunity in expanding corporate partnerships and leveraging tech-integrated guest experiences. Markets like Europe and Southeast Asia offer robust expansion potential, especially in secondary cities with growing commercial activity. Customization of services, such as wellness offerings or pet-friendly amenities, presents additional growth avenues for operators targeting niche customer segments.
Advancements in a serviced apartment
Technological advancements in serviced apartments, such as the integration of technologies, elevate the customer experience and luxuries in the apartment. In advancements such as connectivity and smart home integration, sustainable and eco-friendly practices, flexible and customizable living spaces, health and wellness facilities, localization and cultural immersion experiences, adoption of AI and automation, enhanced security, and data-driven personalization.
Serviced Apartment Market Challenges
The fragmented regulatory framework for serviced apartments poses operational complexities, especially in densely populated or highly regulated markets. Brand differentiation is another challenge in a crowded field where guest loyalty is influenced by digital experiences and service consistency. Furthermore, economic fluctuations may affect corporate budgets for travel accommodations, impacting long-stay bookings.
Serviced Apartment Market Regional Insights
In 2023, North America captured the largest share of the market at 38%, owing to mature hospitality infrastructure and high corporate demand. Europe is forecasted to expand at a CAGR of 12.32%, bolstered by increased interregional movement and demand for flexible accommodation. Asia Pacific, while still developing, is poised for strong long-term growth due to urbanization and increased international work assignments.
Serviced Apartment Market Recent Developments
- In April 2024, Ascott Limited, a Singapore-based hospitality company also known as the wholly owned lodging business unit of CapitaLand Investment Limited, launched the first serviced apartments in Gurugram in North India in partnering with local real estate developer Paras Buildtech.
- In November 2024, OSK Property Holdings Bhd, a subsidiary of OSK Holdings Bhd, launched the Nara, the serviced apartment project under the 27.77-acre (11.24-hectare) Shorea Park master plan in Puchong.
Serviced Apartment Market Companies
- THE SQUA.RE SERVICED APARTMENTS
- adiahotels.com
- Viridian Apartments
- Adagio
- The Ascott Limited
- Frasers Hospitality
- The Serviced Apartment Company
- Staycity Ltd
- Habicus Group
- Marriott International, Inc.
Segments Covered in the Report
By Type
- Long-Term (>30 Nights)
- Short-Term (<30 Nights)
By End-use
- Corporate/Business Traveler
- Leisure Traveler
- Expats And Relocators
By Booking Mode
- Direct Booking
- Online Travel Agencies
- Corporate Contracts
By Geography
- North America
- Asia Pacific
- Europe
- Latin America
- Middle East and Africa
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