Serviced Apartment Market Size & Forecasts 2026-2035, By Segments (Type, End-use, Booking Mode), Growth Opportunities, Innovation Landscape, Regulatory Shifts, Strategic Regional Insights (U.S., Japan, China, South Korea, UK, Germany, France), and Competitive Dynamics (Marriott, Hilton, Accor, Hyatt, Ascott)

Market Outlook

Serviced Apartment Market size is expected to advance from USD 137.7 billion in 2025 to USD 447.16 billion by 2035, registering a CAGR of more than 12.5% across 2026-2035. By 2026, the industry is anticipated to generate USD 153.07 billion in revenue.

• Base Year Value (2025): USD 137.7 Billion
• CAGR (2026-2035): 12.5%
• Forecast Year Value (2035): USD 447.16 Billion
• Historical Data Period: 2021-2025
• Largest Region: Asia Pacific
• Forecast Period: 2026-2035

Key Takeaways

• Asia Pacific region captured more than 41.2% revenue share in 2025, propelled by urbanization and tourism growth.
• Asia Pacific region will achieve around 14% CAGR from 2026 to 2035, fueled by business and leisure travel demand.
• The short-term (<30 nights) segment recorded 58.8% revenue share in 2025, impelled by tourism drives short-term apartment demand.
• Achieving 49.5% share in 2025, Corporate/Business traveler segment maintained its lead, sustained by business travel drives corporate demand.
• In 2025, direct booking segment captured 46.35% serviced apartment market share, propelled by consumer preference for direct control drives bookings.
• Leading organizations shaping the serviced apartment market include Marriott (USA), Hilton (USA), Accor (France), Hyatt (USA), Ascott (Singapore), Oakwood (USA), Staybridge Suites (USA), Residence Inn (USA), Fraser Hospitality (Singapore), Adina Apartment Hotels (Australia).

Market Dynamics

Increasing Demand for Serviced Apartments in Urban and Business Hubs

The serviced apartment market is witnessing a notable surge in demand, particularly in urban and business-centric locations. This trend is largely driven by the evolving preferences of travelers who increasingly seek flexibility and home-like amenities during their stays. According to the Global Business Travel Association, the rise of remote work and the blending of leisure and business travel have led to a greater inclination towards accommodations that offer both comfort and convenience. As a result, serviced apartments are becoming the preferred choice for corporate travelers, providing a compelling alternative to traditional hotels. Established players in the market can seize this opportunity by enhancing their offerings to cater to this demographic, while new entrants can focus on niche markets such as long-term stays or tailored experiences for business professionals.

Expansion of Serviced Apartment Networks and Global Chains

The growth of the serviced apartment market is significantly bolstered by the strategic expansion of established networks and global chains. Major players like Marriott International and Accor have been actively increasing their footprint in this sector, recognizing the potential for revenue diversification and brand loyalty. The International Hotel & Restaurant Association highlights that these expansions are not merely geographical but also encompass the development of diverse product offerings that appeal to various consumer segments. This competitive dynamic creates opportunities for both established brands to fortify their market position and for new entrants to innovate with unique concepts that differentiate them from traditional hospitality models. As these networks continue to grow, they are likely to leverage economies of scale, enhancing operational efficiencies and service quality.

Development of Premium, Tech-Enabled, and Sustainable Serviced Apartments

The serviced apartment market is increasingly influenced by the development of premium, tech-enabled, and sustainable offerings, reflecting a broader shift towards environmentally responsible and technologically integrated living spaces. Companies like Oakwood Worldwide are pioneering this trend by incorporating smart home technologies and eco-friendly practices into their designs, catering to environmentally conscious consumers. The World Travel & Tourism Council emphasizes that sustainability is becoming a key decision factor for travelers, particularly millennials and Gen Z, who prioritize eco-friendly accommodations. This shift presents strategic opportunities for both established players to innovate within their existing frameworks and for new entrants to capture market share by focusing on sustainability as a core value proposition. As consumer preferences evolve, the demand for such offerings is expected to shape the future landscape of the serviced apartment market.

Growth Driver Assessment Framework
Growth Driver	Impact On CAGR	Regulatory Influence	Geographic Relevance	Adoption Rate	Impact Timeline
Increasing demand for serviced apartments in urban and business hubs	4.50%	Short term (≤ 2 yrs)	North America, Europe (spillover: Asia Pacific)	Medium	Fast
Expansion of serviced apartment networks and global chains	4.00%	Medium term (2–5 yrs)	Asia Pacific, North America (spillover: Europe)	Low	Moderate
Development of premium, tech-enabled, and sustainable serviced apartments	4.00%	Long term (5+ yrs)	Europe, Asia Pacific (spillover: North America)	Low	Slow

Industry Restraints:

Regulatory Compliance Burdens

The serviced apartment market faces significant challenges stemming from stringent regulatory compliance requirements that vary widely across jurisdictions. These regulations often encompass zoning laws, health and safety standards, and licensing requirements, which can create operational inefficiencies and slow down market entry for new operators. For instance, in cities like New York and San Francisco, local regulations have restricted the number of short-term rental licenses available, leading to a competitive disadvantage for operators who are unable to comply with evolving legislation. The World Bank has noted that such regulatory frameworks can hinder economic growth in the hospitality sector by imposing high entry barriers and operational costs, which in turn dampens consumer interest and investment in serviced apartments. As regulations become increasingly complex, both established companies and new entrants must allocate substantial resources to navigate compliance, affecting profitability and market agility.

Sustainability Pressures

The rising emphasis on sustainability is reshaping the serviced apartment market, as consumers increasingly prioritize eco-friendly practices in their accommodation choices. This shift is not merely a trend; according to the Global Sustainable Tourism Council, 73% of travelers are willing to pay more for sustainable options. However, many serviced apartment providers struggle to implement sustainable practices due to high initial costs and operational challenges. For example, integrating energy-efficient systems and sustainable materials often requires significant upfront investment, which can deter smaller operators from entering the market. Furthermore, established players may find it difficult to retrofit existing properties to meet these standards, leading to potential reputational risks and customer dissatisfaction. As sustainability continues to be a focal point for consumers and regulatory bodies alike, market participants will need to innovate and adapt their business models to remain competitive, suggesting that those who fail to prioritize sustainability may face declining market share in the coming years.

Regional Forecast

Asia Pacific Market Statistics:

Asia Pacific dominates the serviced apartment market, capturing over 41.2% of the global share in 2025, while also being the fastest-growing region with a projected CAGR of 14%. This leadership is driven by robust urbanization and tourism growth, which have significantly shifted consumer preferences toward flexible and long-term lodging solutions. As travelers increasingly seek home-like amenities coupled with business conveniences, serviced apartments have become the preferred choice for both leisure and corporate stays. The region’s economic resilience, bolstered by technological advancements and evolving spending patterns, further enhances its appeal. According to the Asia-Pacific Economic Cooperation (APEC), the region's commitment to sustainable tourism practices and efficient regulatory frameworks has positioned it favorably against global competitors, presenting substantial opportunities for investors and operators in the serviced apartment market.

Japan is positioned as a pivotal hub in Asia Pacific, significantly influencing the serviced apartment market through its unique blend of cultural dynamics and consumer demand. The country's well-established tourism sector has seen a surge in visitors, particularly from neighboring countries, leading to increased demand for serviced apartments that cater to both short-term and long-term stays. The Japan National Tourism Organization highlights that the influx of international tourists is driving operators to innovate their offerings, integrating local cultural experiences into their services. This strategic alignment with consumer preferences allows serviced apartments to thrive in a competitive landscape. Additionally, Japan's regulatory environment, which supports sustainable development in tourism, further enhances the market's attractiveness. As such, Japan's growth trajectory not only reinforces its national market but also contributes significantly to the overall opportunities within the Asia Pacific serviced apartment sector.

China plays a crucial role in the Asia Pacific serviced apartment market, characterized by rapid urbanization and a burgeoning middle class that increasingly values convenience and quality in accommodation. The National Bureau of Statistics of China reports that urban areas are expanding, prompting a shift in housing preferences towards serviced apartments, especially in major cities like Beijing and Shanghai. This trend is complemented by rising disposable incomes and changing lifestyles, where consumers prioritize flexible living arrangements that serviced apartments provide. Furthermore, the competitive strategies adopted by local and international operators, such as enhancing digital services and personalized experiences, are effectively meeting the evolving expectations of modern travelers. China's dynamic market not only strengthens its position within the region but also underscores the broader opportunities for growth in the Asia Pacific serviced apartment sector.

North America Market Analysis:

North America has emerged as the fastest-growing region in the serviced apartment market, driven by lucrative growth opportunities. The increasing demand for flexible and extended stay accommodations, particularly among business travelers and relocating professionals, is reshaping the landscape. As companies emphasize employee well-being and work-life balance, the preference for serviced apartments over traditional hotels has surged. This shift is further supported by the rise in remote work, which has prompted a reevaluation of travel needs and preferences. According to the American Hotel and Lodging Association, the serviced apartment sector is increasingly seen as a viable option for both short and long-term stays, aligning with evolving consumer expectations for comfort and convenience. The region's strong economic performance, coupled with a diverse demographic landscape, positions it favorably for sustained growth in this market.

The U.S. plays a pivotal role in the North American serviced apartment market, reflecting its status as a hub for international business and tourism. The demand for serviced apartments is particularly pronounced in urban centers like New York and San Francisco, where professionals seek accommodations that offer both comfort and proximity to work. Recent data from STR indicates that the extended stay segment has shown resilience, with occupancy rates rebounding as companies resume travel. Additionally, the U.S. regulatory environment is increasingly supportive of flexible lodging solutions, encouraging innovation and competition among providers. The emphasis on sustainability in the hospitality sector is also influencing consumer choices, with many opting for serviced apartments that prioritize eco-friendly practices. This trend not only enhances the appeal of serviced apartments but also aligns with broader societal values. As the U.S. continues to lead in technological advancements and operational efficiencies, it reinforces North America's competitive edge in the serviced apartment market, creating ample opportunities for growth and investment.

Europe Market Trends:

The serviced apartment market in Europe has maintained a significant share, driven by evolving consumer preferences and a robust demand for flexible accommodation solutions. This region's importance is underscored by its diverse economic landscape, which includes a mix of established markets and emerging destinations that cater to both business and leisure travelers. Factors such as increased mobility, a growing emphasis on sustainability, and advancements in technology have reshaped the market dynamics, leading to a heightened focus on quality service and operational efficiency. Recent insights from the European Union's tourism report highlight a notable shift towards longer stays, indicating a preference for serviced apartments over traditional hotels, further solidifying the region's competitive position. As the market continues to adapt to these changes, Europe presents substantial opportunities for investment and growth in the serviced apartment sector.

Germany plays a pivotal role in the serviced apartment market, characterized by its strong economic performance and increasing domestic and international travel. The country's commitment to sustainability and innovation has spurred demand for environmentally friendly accommodations, with companies like Adina Apartment Hotels reporting a rise in bookings from eco-conscious travelers. Regulatory frameworks supporting flexible housing solutions have also contributed to the growth of serviced apartments, positioning Germany as a leader in this segment. According to the German National Tourist Board, the trend of remote work has further boosted demand, as professionals seek longer stays in urban centers. This evolving landscape not only emphasizes Germany's strategic importance but also aligns with broader regional opportunities in Europe.

France, another key player in the European serviced apartment market, has experienced a surge in demand driven by its cultural appeal and business hubs. The country’s vibrant tourism sector, coupled with a strong influx of international business travelers, has led to a notable increase in serviced apartment offerings, particularly in cities like Paris and Lyon. The French government’s initiatives to promote tourism and support the hospitality industry have created favorable conditions for growth, as highlighted by the Ministry of Europe and Foreign Affairs. Additionally, the rise of digital platforms facilitating short-term rentals has intensified competition, prompting serviced apartment providers to enhance their service offerings. As France continues to attract diverse demographics, its role in the European serviced apartment market remains crucial, presenting significant prospects for stakeholders looking to capitalize on this growing trend.

Regional Market Attractiveness & Strategic Fit Matrix
Parameter	North America	Asia Pacific	Europe	Latin America	MEA
Innovation Hub	Advanced	Developing	Advanced	Developing	Developing
Cost-Sensitive Region	Low	Medium	Low	High	Medium
Regulatory Environment	Supportive	Neutral	Restrictive	Neutral	Supportive
Demand Drivers	Strong	Strong	Strong	Moderate	Moderate
Development Stage	Developed	Developing	Developed	Emerging	Emerging
Adoption Rate	High	High	High	Medium	Medium
New Entrants / Startups	Moderate	Dense	Moderate	Moderate	Moderate
Macro Indicators	Strong	Stable	Stable	Stable	Weak

Segmentation Analysis

 

Analysis by Type

The serviced apartment market is predominantly shaped by the short-term (<30 nights) segment, which held a commanding 58.8% share in 2025. This leadership is primarily fueled by the robust demand from tourism, as travelers increasingly seek flexible, home-like accommodations that enhance their experience. The rise in travel frequency, particularly in urban hotspots, has led to a surge in preferences for short-term stays, reflecting a shift towards experiential travel. Additionally, as sustainability becomes a priority, serviced apartments are adapting with eco-friendly practices that appeal to modern consumers. This segment presents strategic advantages for both established firms and new entrants, as they can capitalize on the growing traveler demographic seeking convenience and comfort. Looking ahead, the short-term segment is expected to maintain its relevance due to ongoing trends in travel and hospitality, ensuring a steady influx of visitors seeking these unique living arrangements.

Analysis by End-use

In the serviced apartment market, the corporate/business traveler segment captured over 49.5% of the market share in 2025, underscoring its significance. This segment's dominance is largely driven by the increasing volume of business travel, as companies prioritize extended stays to enhance productivity and employee satisfaction. The flexibility and amenities offered by serviced apartments align well with the needs of corporate clients, leading to a preference for these accommodations over traditional hotels. Moreover, as organizations embrace remote and hybrid work models, the demand for comfortable, well-equipped living spaces for traveling employees is on the rise. This segment offers substantial opportunities for established brands and emerging players alike, as they can tailor offerings to meet the evolving needs of corporate clients. The corporate/business traveler segment is poised to remain vital in the near term, bolstered by the recovery of global business travel and the ongoing emphasis on work-life balance.

Analysis by Booking Mode

The serviced apartment market is significantly influenced by the direct booking segment, which represented 46.4% of the overall market in 2025. This segment thrives as consumer preference for direct control over reservations continues to grow, allowing travelers to secure better rates and personalized experiences. The rise of digital platforms and improved user interfaces has streamlined the booking process, enhancing customer convenience and satisfaction. Additionally, as brands focus on building direct relationships with their clients, they are investing in loyalty programs and personalized marketing strategies that resonate with today's tech-savvy consumers. This trend creates strategic opportunities for both established companies and new entrants to capture market share through enhanced customer engagement. With the ongoing digital transformation in the hospitality industry, the direct booking segment is expected to remain crucial, adapting to evolving consumer behaviors and technological advancements.

Report Segmentation
Segment	Sub-Segment
Type	Long-Term (>30 Nights), Short-Term (<30 Nights)
End-use	Corporate/Business Traveler, Leisure Traveler, Expats and Relocators
Booking Mode	Direct Booking, Online Travel Agencies, Corporate Contracts

Competitive Landscape

Key players in the serviced apartment market include prominent brands such as Marriott, Hilton, Accor, and Hyatt, each commanding significant market presence through their extensive global networks. Ascott and Oakwood are also notable for their specialized offerings that cater to diverse customer needs, while Staybridge Suites and Residence Inn focus on providing homely environments for longer stays. Fraser Hospitality and Adina Apartment Hotels further differentiate themselves with a strong emphasis on local experiences, appealing to both business and leisure travelers. This diverse array of players underscores a competitive landscape characterized by varied positioning strategies that cater to distinct market segments.

The competitive environment within the serviced apartment sector is increasingly dynamic, driven by strategic initiatives that enhance market positioning and foster innovation. Collaborations among key players have led to enhanced service offerings and improved customer experiences, reflecting a commitment to adapting to evolving traveler preferences. Noteworthy developments include the introduction of technology-driven solutions that streamline booking processes and enhance guest interactions. Furthermore, mergers and acquisitions among these top-tier companies have resulted in expanded portfolios and geographic reach, enabling them to capture emerging trends and consumer demands effectively. Such initiatives not only bolster competitiveness but also pave the way for innovative service models that redefine the serviced apartment experience.

Strategic / Actionable Recommendations for Regional Players

In North America, fostering partnerships with local businesses can enhance guest experiences and create unique offerings that resonate with travelers seeking authentic experiences. Emphasizing the integration of smart technologies within properties can streamline operations and elevate customer service, positioning regional players as leaders in innovation. Targeting specific sub-segments such as remote workers or digital nomads through tailored packages will likely yield positive engagement and loyalty.

For players in the Asia Pacific region, leveraging the increasing demand for flexible living arrangements can be advantageous. Collaborating with tech startups to enhance digital platforms for seamless booking and customer engagement will create a competitive edge. Additionally, focusing on sustainability initiatives can attract environmentally conscious travelers, aligning with global trends while reinforcing brand reputation.

In Europe, responding to the competitive landscape by exploring alliances with travel and tourism entities can amplify visibility and attract diverse clientele. Investing in research to understand evolving consumer preferences will inform product development and service enhancements. Moreover, tapping into the growing trend of experiential travel by offering curated local experiences can differentiate regional offerings and deepen customer loyalty.