Global Serviced Apartment Market - Industry Dynamics, Size, And Opportunity Forecast To 2032

The Serviced Apartment Market is experiencing robust expansion, with market size projected to increase from (121.31 Billion) 2024 to (248.93 Billion) 2032, demonstrating a consistent year-over-year growth rate of 12.8%. Serviced Apartment Market Size, Share, Competitive Landscape and Trend Analysis Report, by Types (On-site Managed, Off-site Managed), by Applications (Leisure, Corporate/Business Traveler, Expats and Relocators) , by Booking Mode (Direct Booking, Online Travel Agencies, Corporate Contracts) And Regions (North America (United States, Canada, Mexico), South America (Brazil, Argentina, Chile, Rest of South America), Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA (Middle East, Africa)) : Industry Forecast and Opportunity Analysis for 2024 - 2032

The serviced apartment industry is defined as offering fully furnished apartments, with a mix of hotel-like services and home-like comfort, for short-term or long-term rentals. Units generally have features of housekeeping, laundry, Wi-Fi, and round-the-clock reception as part of the daily experience, which allows for an easy and vacation-friendly lodging supplement for business and leisure travelers. The market is fueled by a number of drivers such as corporate travel expansion, the rise of the sharing economy, and growing demand for flexible and lean accommodation options. Major players in the market are hotel brands, niche serviced apartment operators, and online booking services.

Serviced Apartment Report Highlights

Report Metrics	Details
Forecast period	2019-2032
Base Year Of Estimation	2024
Growth Rate	CAGR of 12.8%
Forecast Value (2032)	USD 248.93 Billion
By Product Type	On-site Managed, Off-site Managed
Key Market Players	THE SQUA.RE SERVICED APARTMENTS Viridian Apartments Adagio Habicus Group Marriott International Inc. The Ascott Limited The Serviced Apartment Company Staycity Ltd Frasers Hospitality adiahotels.com
By Region	North America (United States, Canada, Mexico) South America (Brazil, Argentina, Chile, Rest of South America) Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe) Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific) MEA (Middle East, Africa)

Serviced Apartment Market Trends

The serviced apartment market is experiencing several key trends. On the one hand, there is an increasing emphasis on technology integration, including smart home appliances, contactless registration, and virtual tours. Second, sustainability is becoming increasingly significant, and operators are encouraging environmentally responsible behavior as well as sustainable provision of facilities. Last, the market is beginning to embrace personalized experiences where operators are modifying services and facilities to the individual needs of guests. These include flexible stay options, personalized packages, personalized concierge facilities, etc.

Serviced Apartment Market Leading Players

The key players profiled in the report are THE SQUA.RE SERVICED APARTMENTS, The Ascott Limited, Viridian Apartments, The Serviced Apartment Company, Habicus Group, Staycity Ltd, Marriott International Inc., Adagio, Frasers Hospitality, adiahotels.com

Growth Accelerators

With an increasing number of companies reaching a global market, people need long-term stays with the home-like feeling of a personal house, including kitchen facilities, living areas, and convenient access to basic services. This trend has also been boosted by the popularity of telecommuting and by the increasing demand for corporate housing, which offer more privacy and better comfort than conventional hotel rooms. Furthermore, the expansion of the tourism and leisure industry is a major force behind the serviced apartment market. As travelers look for larger and more homely options than hotels, in particular, longer stays, serviced apartments combine comfort as well as being price competitive with the extended stay benefit of being able to be in one location. The growth of digital nomadism, the "workcation" trend, in which travel and remote work are blended, is among the factors driving the appetite for serviced apartments.

Serviced Apartment Market Segmentation analysis

The Global Serviced Apartment is segmented by Type, Application, and Region.
By Type, the market is divided into Distributed On-site Managed, Off-site Managed . The Application segment categorizes the market based on its usage such as Leisure, Corporate/Business Traveler, Expats and Relocators. Geographically, the market is assessed across key Regions like North America (United States, Canada, Mexico), South America (Brazil, Argentina, Chile, Rest of South America), Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA (Middle East, Africa) and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

Competitiveness in the serviced apartment market is turbulent between global hotel corporates, small and medium local operators, and property management companies. Leading global hotel companies, including Marriott, Hilton, and Accor, have also started to dominate the serviced apartment market on the back of their fame of providing luxury and excellent customer service to business and leisure travelers. Big players are usually providing a consistent, high-quality, and well-equipped experience that includes lots of services with facilities, which are all appealing to corporate clients and expatriates who are searching for a long-term stay in a reasonable place. In contrast, local providers concentrate on more specific, area-based solutions that may be priced competitively and feature personalized services to target underserved markets, for example, family holidays or low-cost vacationers.

Challenges In Serviced Apartment Market

The major problem in the serviced apartment sector is fiercer competition with other forms of accommodation, such as short-term rental sites (e.g., Airbnb). These platforms also share comparable flexibility and are usually cheaper, and this can erode the attraction of serviced apartments, especially in competitive urban markets. Other major challenges are non-stationary demand, especially in the context of the global economic order and events such as the coronavirus disease 2019 (COVID-19), which has the potential of sharply diminishing business and leisure trips in an instant. Serviced apartments largely depend on consistently high occupancies, and a decline in touristic or corporate travel generates reduced revenues. Additionally, maintaining high operational standards and operational consistency across various sites involves a significant investment of property management and quality control, increasing the financial burden that service providers face in a competitive market.

Risks & Prospects in Serviced Apartment Market

The serviced apartment segment offers a variety of growth and innovative opportunities. With the growing need for flexible and affordable lodging options, such as for business travelers and digital nomads, there is a clear market for serviced apartments. Additionally, the combination of technology (online reservation websites and smart home applications) can improve the guest experience and improve or automate operations, opening up new paths for growth and differentiation. Moreover, the popularity of the work-from-anywhere lifestyle and global movement trend has broadened the market area, opening up opportunities in the field of leisure tourism and the short-term rental industry. Growing disposable incomes and a changing desire for more luxurious and bespoke travel experiences also drive a need for premium serviced apartments, particularly in aspirational areas. As urbanization, international tourism, and an increase in alternative lodging markets expand, the market is projected to continue to flourish and attract investors and hospitality service providers looking to capitalize on these factors.

Key Target Audience

, The primary target market for the serviced apartment sector is business travelers, expats, and professionals looking for temporary accommodation with the freedom and feeling of home. Patients in this group frequently require short-to-medium-term admissions, e.g., due to being on assignment, moving, or on a project. Serviced apartments provide them with things such as fully fitted apartments, kitchens, and cleaning services, making them an appealing option over a standard hotel., Moreover, the market for serviced apartments is attractive for tourists and holidaymakers who seek a more spacious and budget-friendly option to hotels. Families or groups on long-term stays appreciate the homely environment as well as the benefit of self-catering facilities. The market also targets individuals seeking temporary housing during home renovations, medical treatments, or other life transitions.

Merger and acquisition

The serviced apartment sector has been bustling with a number of landmark mergers and acquisitions with the objective to increase portfolios and improve service specifications. In January 2024 NUMA Group revealed the purchase of Native Places, a UK lifestyle apartment hotel group, which will augment NUMA's property portfolio to more than 7,300 units in Europe. This strategic acquisition enables NUMA to further consolidate its position in the UK market and use Native Places' existing brand notoriety and corporate distribution network to meet the needs of leisure and business passengers looking for adaptable accommodation. Furthermore, Emperor Entertainment Hotel Ltd. has attracted public attention for the reason of buying the HK$90 million serviced apartment building in Hong Kong. This acquisition is a step in the emperor's plan to build up its portfolio of assets as a result of increasing demand for serviced apartments stimulated by government policies. Other notable transactions include Round Hill Capital's acquisition of a serviced apartment asset in Madrid, reflecting a broader trend where companies are consolidating resources to meet the increasing demand for flexible living spaces in urban centers globally. >

Analyst Comment

"The serviced apartment market is experiencing significant growth, driven by factors such as the rise of business travel, the increasing demand for flexible and cost-effective accommodation options, and the growth of the sharing economy. Key players in the market include hotel chains, specialized serviced apartment operators, and online booking platforms. The market is characterized by ongoing innovation, with a focus on providing enhanced guest experiences through personalized services, advanced technology, and unique amenities."