Serviced Apartment Market Size & Share, By Type (Long-Term, Short-Term), End-use (Corporate/Business Traveler, Leisure Traveler), Booking Mode - Growth Trends, Regional Insights (U.S., Japan, South Korea, UK, Germany), Competitive Positioning, Global Forecast Report 2025-2034

Market Outlook:

Serviced Apartment Market size is projected to grow from USD 125.27 billion in 2024 to USD 403.19 billion by 2034, with a CAGR surpassing 12.4% throughout the forecast period (2025-2034). The industry revenue for 2025 is anticipated to be USD 139.59 billion.

• Base Year Value (2024): USD 125.27 billion
• CAGR (2025-2034): 12.4%
• Forecast Year Value (2034): USD 403.19 billion
• Historical Data Period: 2021-2034
• Largest Region: Asia Pacific
• Forecast Period: 2025-2034

Market Dynamics:

Growth Drivers & Opportunities

The serviced apartment market has experienced significant growth due to a confluence of factors that cater to the evolving preferences of travelers and the changing dynamics of corporate housing. One of the primary growth drivers is the rising demand for flexible accommodation options, particularly among business travelers seeking a home-like environment during extended stays. Serviced apartments often provide amenities such as kitchens and separate living areas, allowing guests to enjoy more comfort and convenience compared to traditional hotel accommodations.

Additionally, the trend towards remote work and the increasing number of digital nomads have driven demand for serviced apartments, as they offer flexibility and a more conducive environment for work-life balance. The ability to book accommodations in diverse locations and the availability of high-speed internet and well-equipped workspaces make these apartments highly attractive to remote professionals.

Another significant driver is the growing interest in extended family travel and group vacations. Serviced apartments often cater to larger groups or families, providing more space and reducing the overall cost per person when compared to booking multiple hotel rooms. This shift in family travel dynamics showcases the versatility and appeal of serviced apartments in meeting diverse lodging needs.

The emphasis on experiential travel is also creating opportunities for the serviced apartment market. Travelers increasingly seek authentic experiences and local culture, and serviced apartments are often situated in residential neighborhoods, giving guests a more genuine feel of the destination. This local touch enhances the appeal of serviced accommodations, attracting those looking for more than just a place to sleep.

Report Scope

Report Coverage	Details
Segments Covered	Type, End-Use, Booking Mode
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	The Ascott Limited, Frasers Hospitality, The Serviced Apartment Company, Staycity., Habicus Group, THE SQUA.RE SERVICED APARTMENTS, adiahotels.com, Viridian Apartments, Adagio, and Marriott International,

Industry Restraints:

Despite its positive trajectory, the serviced apartment market faces several restraints that could impact its growth. One prominent challenge is the regulatory environment surrounding short-term rentals in various regions. Municipalities are increasingly enacting strict regulations and zoning laws to manage the influx of short-term rentals, which can pose barriers to entry for new serviced apartment operators.

Furthermore, the competition from traditional hotels and alternative lodging options, such as vacation rentals, adds pressure to the serviced apartment sector. Hotels often have established brand recognition and loyalty programs, which can attract customers away from serviced apartments. Additionally, platforms that facilitate vacation rentals may undermine the competitive edge serviced apartments have in terms of services and amenities.

Another significant restraint is the economic uncertainty that can affect travel spending. Fluctuations in the economy, coupled with global events such as pandemics or geopolitical tensions, can lead to reduced travel demand, impacting occupancy rates for serviced apartments. This economic volatility makes it challenging for operators to maintain steady revenue streams and optimize pricing strategies.

Operational challenges also play a role in limiting growth within the serviced apartment market. Managing properties across different locations requires significant resources, effective marketing strategies, and the ability to deliver consistent service quality. The complexity of maintaining diverse properties can strain operational capabilities, particularly for smaller players in the market.

Regional Forecast:

North America

The serviced apartment market in North America is prominently driven by the United States and Canada. In the U.S., major urban centers such as New York, Los Angeles, and Chicago are witnessing a significant demand for serviced apartments, attributed to the increasing number of business travelers and expatriates. The rise in remote work and temporary relocation for jobs has further spurred the need for flexible living arrangements. Canada also showcases a growing market, particularly in cities like Toronto and Vancouver, where the influx of skilled workers and tourists enhances the appeal of serviced accommodation. The overall trend towards longer stays and quality housing solutions is fostering steady growth across both countries.

Asia Pacific

In the Asia Pacific region, the serviced apartment market is experiencing robust expansion, particularly in China, Japan, and South Korea. China stands out as a powerhouse with cities like Beijing and Shanghai leading the charge, driven by a booming economy and a surging number of international travelers and expatriates. Japan's market is also noteworthy, especially in Tokyo and Osaka, where there is a strong preference for high-quality serviced accommodations among both business and leisure travelers. South Korea, particularly Seoul, is witnessing rapid growth due to increasing global business engagements and the popularity of experiential travel. This entire region benefits from a dynamic workforce and urbanization, positioning it favorably for continued growth in the serviced apartment sector.

Europe

The serviced apartment market in Europe highlights robust activity, particularly in the UK, Germany, and France. The UK, with London at the forefront, is a major hub for business and tourism, driving demand for serviced apartments among corporate travelers and tourists seeking convenience and comfort. Germany, particularly cities like Berlin and Frankfurt, is experiencing significant growth, attributed to its strong economy and a rise in international business connections. France, especially in Paris, showcases a vibrant market with increasing appeal among travelers who prefer the flexibility and amenities offered by serviced apartments. This region stands out for its diverse economic landscapes and increasing travel frequency, supporting a favorable environment for serviced accommodations.

Segmentation Analysis:

In terms of segmentation, the global Serviced Apartment market is analyzed on the basis of Type, End-Use, Booking Mode.

Type Segment

The serviced apartment market can be segmented based on the type of accommodations offered. Key sub-segments within this category include traditional serviced apartments, luxury serviced apartments, and extended stay hotels. Traditional serviced apartments cater to business travelers and families seeking a home-like environment while on the move. Luxury serviced apartments, often found in prime urban locations, attract high-net-worth individuals and corporate clients looking for premium amenities and services. Extended stay hotels, which combine the features of a hotel and an apartment, have seen an increase in popularity among long-term travelers. Among these, the luxury serviced apartments segment is expected to witness the largest market size, fueled by rising disposable incomes and a growing preference for upscale travel experiences.

End-Use Segment

The end-use segment of the serviced apartment market encompasses corporate, leisure, and other use cases. Corporates represent a significant portion of the demand, with companies opting for serviced apartments for their employees on business assignments, recognizing the cost-effectiveness and comfort they provide compared to conventional hotels. The leisure segment is also gaining traction, particularly among families and groups looking for flexible accommodation options that allow for cooking and entertaining. Among these sub-segments, the corporate end-use is expected to experience the fastest growth due to the increasing trend of globalization and the expansion of multinational corporations, which necessitate extended stays for staff on business trips.

Booking Mode Segment

In the booking mode segment, the serviced apartment market can be classified into online bookings and offline bookings. Online booking platforms, including travel agencies and specialized serviced apartment portals, have revolutionized the way travelers secure accommodation, offering convenience and competitive pricing. The offline booking method, which involves direct contacts with property owners or agents, still holds relevance, especially in niche markets where personal service is valued. As technology continues to advance, the online booking segment is poised to grow rapidly, capturing a larger share of the market due to enhanced user experiences and the proliferation of mobile booking applications. This shift is fundamental in catering to the tech-savvy traveler who values ease of booking as an essential part of their travel experience.

Competitive Landscape:

The serviced apartment market is characterized by a competitive landscape that has evolved significantly over the past few years. With a growing preference for flexible accommodation options among both business and leisure travelers, the market has seen the emergence of numerous players ranging from established hotel brands to niche providers. Key drivers of competition include the differentiation of service offerings, geographical expansion, and the integration of technology to enhance the guest experience. Companies are increasingly focusing on providing amenities such as fully equipped kitchens, laundry services, and communal spaces to attract a diverse clientele. Additionally, the rise of online booking platforms has intensified competition, enabling customers to compare offerings and prices easily.

Top Market Players

1. The Ascott Limited

2. Oakwood Worldwide

3. Marriott International

4. InterContinental Hotels Group (IHG)

5. AccorHotels

6. Frasers Hospitality

7. BridgeStreet Global Hospitality

8. Harrys Hotel Group

9. Staycity Aparthotels

10. Sykes Holiday Cottages