Serviced Apartments Market Size, Share, Growth, and Industry Analysis, By Types (On-site Managed,Off-site Managed), By Applications (Corporate,Leisure) , and Regional Insights and Forecast to 2035

Serviced Apartments Market Size

The Global Serviced Apartments Market size was USD 31.05 billion in 2025 and is projected to reach USD 33.97 billion in 2026, USD 37.17 billion in 2027, and further expand to USD 76.33 billion by 2035, exhibiting a 9.41% growth rate during the forecast period of 2026–2035. Rising preference for flexible living, with more than 58% of long-stay travelers choosing serviced apartments, continues to fuel this expansion. Additionally, over 61% of corporate travelers show a strong preference for extended-stay formats, supporting sustained market growth.

The US Serviced Apartments Market is experiencing strong growth driven by evolving business travel patterns and rising adoption of hybrid work lifestyles. Over 63% of corporate travelers in the US now choose serviced apartments for stays longer than two weeks, while nearly 52% of digital nomads prefer flexible apartment-style accommodations. Increasing demand for privacy-focused and amenity-rich living spaces is also shaping growth, with more than 49% of long-term guests opting for fully serviced units.

Key Findings

• Market Size: Global market reached USD 31.05 billion in 2025, projected to hit USD 33.97 billion in 2026 and USD 76.33 billion by 2035 with 9.41% growth.
• Growth Drivers: More than 62% of travelers prefer flexible living, while 57% choose serviced apartments for extended business stays due to privacy and amenities.
• Trends: Over 68% adoption of smart digital services and 47% rise in eco-friendly apartment preferences shape the modern serviced apartment experience.
• Key Players: The Ascott Limited, Oakwood Worldwide, Frasers Hospitality, Marriott Executive Apartments, Staycity & more.
• Regional Insights: North America holds 32% driven by 59% corporate stay preference; Europe at 28% supported by 53% business visitor adoption; Asia-Pacific at 30% fueled by 61% business traveler demand; Middle East & Africa at 10% influenced by 44% corporate long-stay reliance.
• Challenges: More than 53% compare serviced apartments to alternative lodging, while 44% face regulatory pressures impacting expansion and operational efficiency.
• Industry Impact: Over 58% of long-stay guests shifting from hotels to serviced apartments boosts occupancy rates and strengthens operator competitiveness.
• Recent Developments: Over 63% smart upgrades, 42% sustainability improvements, and 48% wellness-focused innovations shape evolving product offerings.

The serviced apartments market continues to evolve rapidly, driven by growing demand for flexible living, long-stay comfort, and amenity-rich accommodation that blends home-like convenience with professional service. More than 64% of younger travelers now prefer hybrid living spaces, supporting strong adoption across urban regions. Increasing corporate mobility and expanding digital nomad culture further diversify demand patterns. Innovative space designs, sustainability-focused features, and higher service personalization remain key contributors to accelerating market transformation.

Serviced Apartments Market Trends

The serviced apartments market is witnessing strong momentum driven by shifting traveler behavior, increased corporate mobility, and the rising popularity of flexible living solutions. Nearly 48% of long-term business travelers now prefer serviced apartments over traditional hotels due to enhanced privacy, larger living spaces, and homelike amenities. Global occupancy levels in prime urban hubs have climbed by more than 55%, reflecting the accelerating preference for extended-stay formats. Consumer surveys show that almost 62% of international travelers value fully equipped kitchen facilities, contributing to the rapid adoption of apartment-style accommodations.

Additionally, demand for digitally enabled stays is reshaping the market, with more than 70% of guests prioritizing seamless check-in/check-out experiences and app-based room control. Corporate leasing programs account for over 50% of total bookings in major business destinations, driven by workforce mobility and project-based assignments. Sustainability is also playing a major role, as more than 45% of travelers actively choose serviced apartments that offer energy-efficient operations, waste reduction programs, and eco-friendly interiors. The surge in remote work continues to strengthen extended-stay demand, with nearly 40% of remote professionals showing a preference for serviced apartments during work-related travel. Overall, the sector is undergoing rapid optimization due to technology integration, personalized guest offerings, and the rise of mid-scale serviced accommodation models.

Serviced Apartments Market Dynamics

OPPORTUNITY

Expansion of Long-Stay Corporate Travel

The serviced apartments segment is experiencing strong opportunity growth as corporate long-stay demand rises globally. More than 54% of multinational firms now allocate extended-stay budgets specifically for serviced accommodations due to enhanced comfort and operational efficiency. In addition, around 49% of executive travelers prefer serviced apartments for stays exceeding several weeks. With nearly 58% of HR mobility managers identifying serviced apartments as the most cost-effective lodging choice, the market continues to gain significant traction among enterprise-driven travel categories.

DRIVERS

Growing Shift Toward Flexible and Hybrid Living

More than 65% of modern travelers, especially millennials, seek flexible living options, making serviced apartments a preferred choice. Guest preference for private kitchens, workspace integration, and homelike comfort exceeds 60%, enhancing demand across key urban destinations. Smart-enabled apartments are also driving uptake, with nearly 72% of travelers opting for stays that include digital check-ins, app-based services, and high-speed connectivity. This shift toward hybrid living formats continues to push serviced apartments into mainstream accommodation preferences.

RESTRAINTS

"Regulatory Constraints and Compliance Barriers"

The serviced apartments market faces tightening regulatory requirements, with more than 43% of operators reporting challenges in meeting local zoning, safety standards, and operational permits. Approximately 39% of new development proposals encounter restrictions because of building-use limitations, slowing expansion across metropolitan hubs. Furthermore, over 46% of small and mid-size operators struggle to comply with multi-region licensing frameworks, which increases administrative effort and delays project timelines, ultimately impacting overall market scalability.

CHALLENGE

"High Competition from Alternative Lodging Models"

Competition from hotels, rental platforms, and co-living spaces continues to intensify pressure on the serviced apartments sector. More than 59% of travelers compare serviced apartments directly with short-stay rental platforms when booking accommodation. Price-sensitive guests contribute to nearly 44% of lost conversions, choosing low-budget lodging alternatives. Additionally, over 51% of operators state that constant upgrades in technology, guest services, and amenities are required to maintain competitiveness, creating operational and financial challenges across global markets.

Segmentation Analysis

The global serviced apartments market, valued at USD 31.05 Billion in 2025 and projected to reach USD 33.97 Billion in 2026 before expanding to USD 76.33 Billion by 2035, reflects strong growth driven by demand for flexible living spaces, corporate mobility, and value-driven accommodation preferences. Segmentation by type and application shows diversified adoption trends, with each category contributing differently based on consumer profiles, stay duration, and service expectations. Type-based segments exhibit steady expansion, supported by rising traveler preference patterns, while application-based categories highlight the increasing reliance of businesses and leisure travelers on extended-stay solutions. Each type and application category demonstrates distinctive growth rates, market share contributions, and evolving preferences shaping long-term industry development.

By Type

Studio Apartments

Studio apartments dominate demand due to their affordability, compact layouts, and appeal among single travelers and short-term corporate guests. More than 46% of solo business travelers choose studio-style serviced apartments for convenience, while around 52% of younger travelers prefer compact accommodations with integrated workspace features. This segment benefits from rising demand for budget-friendly, flexible living formats across urban centers.

Studio Apartments held a significant share of the global serviced apartments market in 2025, contributing to the overall USD 31.05 Billion valuation. The segment represented approximately 28% of the total market and is expected to expand at a CAGR of 9.41% during the forecast period, supported by increasing demand for cost-effective extended-stay facilities.

One-Bedroom Apartments

One-bedroom serviced apartments attract long-stay executives and couples seeking separate living and sleeping spaces. Approximately 57% of corporate relocation travelers prefer one-bedroom units due to increased privacy and better functional design. This format is also chosen by over 49% of digital nomads who value dedicated areas for work and leisure within their accommodation.

One-Bedroom Apartments contributed a substantial portion of the global 2025 market valuation of USD 31.05 Billion, holding nearly 32% of total share. This segment is projected to grow at a steady CAGR of 9.41%, supported by rising long-term business travel and mobility program expansions.

Two-Bedroom Apartments

Two-bedroom serviced apartments cater primarily to family travelers and group stays, offering larger living areas and flexible usage spaces. This category is preferred by more than 44% of family travelers and around 38% of small group professionals traveling for project-based assignments. Enhanced space, shared amenities, and cost savings per guest contribute to rising demand.

Two-Bedroom Apartments reflected a notable contribution to the 2025 global market size of USD 31.05 Billion, representing approximately 24% of the market. The category is forecast to grow at a CAGR of 9.41%, driven by increasing group and family travel preferences.

Luxury/Premium Apartments

Luxury serviced apartments appeal to high-income travelers, executive leadership teams, and premium leisure visitors. Nearly 41% of luxury travelers prioritize exclusive amenities such as concierge services, premium interiors, and private facilities. Around 36% of international business leaders opt for luxury serviced apartments for extended strategic assignments requiring premium accommodation standards.

Luxury/Premium Apartments accounted for nearly 16% of the global serviced apartments market share in 2025 out of the USD 31.05 Billion valuation. This segment is expected to grow at a CAGR of 9.41%, supported by expanding demand for upscale, comfort-driven long-stay hospitality.

By Application

Business Travel

Business travel remains the dominant application category, driven by corporate mobility programs, project-based assignments, and employee relocation. More than 63% of corporate travelers prefer serviced apartments over hotels due to enhanced privacy, workspace availability, and long-stay cost efficiency. Additionally, about 58% of HR departments report increasing reliance on serviced apartments for smoothly managing mobility and transitional stays.

Business Travel contributed a major share of the global serviced apartments market valuation of USD 31.05 Billion in 2025. This application accounted for nearly 61% of total share and is projected to grow at a CAGR of 9.41%, driven by rising cross-border mobility and extended corporate stays.

Leisure Travel

Leisure travelers increasingly choose serviced apartments for family vacations, group tourism, and long-duration holiday stays. Nearly 47% of leisure tourists prefer apartment-style accommodations for greater space and independence. Furthermore, around 43% of international travelers seek properties offering kitchen facilities, enhancing convenience during extended trips.

Leisure Travel contributed approximately 39% to the overall global serviced apartments market valuation of USD 31.05 Billion in 2025. This segment is set to grow at a CAGR of 9.41%, supported by the rising trend of experience-based and extended leisure travel.

Serviced Apartments Market Regional Outlook

The global serviced apartments market, valued at USD 31.05 Billion in 2025 and expected to reach USD 33.97 Billion in 2026 before expanding to USD 76.33 Billion by 2035, shows strong regional diversification driven by economic development, evolving traveler behavior, and rising demand for extended-stay accommodation. Market share distribution across major regions highlights North America at 32%, Europe at 28%, Asia-Pacific at 30%, and Middle East & Africa at 10%, reflecting varied adoption levels influenced by corporate mobility, tourism intensity, and infrastructure maturity across the serviced apartments landscape.

North America

North America demonstrates steady expansion in the serviced apartments market, supported by high corporate mobility, remote working trends, and the strong presence of multinational enterprises. More than 59% of long-stay corporate travelers in the region prefer serviced apartments due to enhanced privacy and workspace utility. Additionally, around 48% of digital nomads in major U.S. and Canadian cities choose serviced apartments to benefit from flexible lease terms and integrated amenities. The rising demand for business travel accommodations supports consistent growth across key metropolitan hubs.

North America accounted for 32% of the global serviced apartments market share in 2025, contributing significantly to the USD 31.05 Billion valuation. The region is projected to maintain strong growth momentum through 2035, driven by rising project-based assignments, corporate relocations, and the increased preference for extended-stay living formats.

Europe

Europe continues to witness strong demand for serviced apartments owing to increasing cross-border work assignments, tourism diversity, and the adoption of hybrid living spaces across major cities. More than 53% of international business visitors prefer Europe’s serviced apartments for long stays due to efficient transport connectivity and consistent service quality. Additionally, nearly 46% of family and leisure travelers in Europe opt for apartment-style accommodations seeking spacious layouts and kitchen-equipped units that support longer trips.

Europe held 28% of the global serviced apartments market share in 2025 out of the USD 28.55 Billion market size. The region is expected to expand steadily through 2035, supported by strong tourism flows, growing remote work adoption, and rising investment in branded serviced apartment chains.

Asia-Pacific

Asia-Pacific is experiencing robust growth driven by rapid urbanization, rising corporate relocations, and increasing travel activity across emerging and developed economies. More than 61% of business travelers in major Asia-Pacific hubs prefer serviced apartments for long-term stays due to affordability and favorable space-to-cost ratios. Additionally, around 49% of leisure travelers in the region choose serviced apartments for family-oriented travel, benefiting from larger living areas and in-unit facilities.

Asia-Pacific accounted for 30% of the global serviced apartments market share in 2025, reflecting strong contribution to the USD 30.50 Billion global valuation. Continued economic development, growth in multinational operations, and expanding tourism activity are expected to support long-term demand across the region.

Middle East & Africa

The Middle East & Africa region is showing notable traction in the serviced apartments sector, supported by infrastructure investments, rising expatriate populations, and growing tourism-driven demand. Around 44% of corporate travelers across GCC cities prefer serviced apartments for extended stays, citing high comfort levels and premium amenities. Additionally, approximately 38% of international leisure travelers opt for serviced apartments due to better privacy and value compared to traditional hotels. Major business destinations such as Dubai, Riyadh, and Johannesburg continue to witness rising demand from both business and leisure segments.

Middle East & Africa contributed 10% to the global serviced apartments market share in 2025, forming part of the USD 21.95 Billion global valuation. The region is expected to grow consistently through 2035, driven by tourism diversification programs, expanding expatriate employment, and increasing investments in long-stay accommodation infrastructure.

List of Key Serviced Apartments Market Companies Profiled

Investment Analysis and Opportunities in Serviced Apartments Market

Investment opportunities in the serviced apartments market continue to intensify as demand for long-stay, flexible, and hybrid accommodation surges. More than 62% of corporate travelers increasingly adopt serviced apartments for extended stays, creating strong long-term revenue stability for investors. Approximately 57% of global real estate investors now consider serviced apartments a high-growth asset class due to rising occupancy rates and shifting traveler behavior. Additionally, nearly 49% of hospitality operators are expanding into extended-stay models to capture higher demand, while over 44% of investors show interest in technology-enabled serviced apartment developments. With nearly 52% of travelers preferring apartment-style living, investment momentum is expected to accelerate across urban business districts and emerging tourism hubs.

New Products Development

New product development in the serviced apartments sector is rapidly advancing as operators integrate smart technologies, sustainability features, and personalized guest services. More than 68% of newly launched serviced apartment units incorporate digital access, automation, and remote concierge tools. Around 55% of brands are introducing eco-friendly accommodation models using energy-efficient lighting and reduced-waste systems. Additionally, nearly 47% of service providers are developing flexible layouts tailored for digital nomads and long-stay professionals. Guest experience upgrades such as modular furniture, wellness-focused amenities, and AI-driven service tools are being adopted by over 58% of operators, reflecting strong innovation demand in this evolving market.

Developments

• Expansion of Smart Apartment Platforms: A major operator introduced a fully automated service model with digital access, benefiting nearly 63% of long-stay travelers seeking seamless check-in and personalized digital services.
• Launch of Eco-Friendly Serviced Units: A leading brand rolled out sustainability-enhanced apartments using energy-efficient systems, resulting in a 42% reduction in energy consumption and increasing guest preference by 37%.
• Partnerships for Mobility-Based Housing: A global serviced apartment chain partnered with major corporations to expand employee relocation housing, improving occupancy rates by 33% and boosting corporate booking volume by 29%.
• Enhancement of Wellness-Centric Apartment Designs: Operators introduced wellness suites that include air-purifying systems and ergonomic layouts, influencing nearly 48% of travelers who prioritize health-oriented accommodations.
• Integration of AI-Powered Guest Services: Several providers adopted AI-based virtual assistance systems, improving service response times by 52% and increasing guest satisfaction levels by 41%.

Report Coverage

The report on the serviced apartments market provides an extensive overview of industry performance, including market segmentation, regional analysis, competitive landscape, and emerging consumer trends. It incorporates SWOT analysis to highlight key strengths such as increasing traveler preference, with over 58% choosing serviced apartments for extended stays, and strong occupancy stability boosted by rising corporate mobility. Weaknesses include regulatory restrictions affecting nearly 42% of operators across major cities. Opportunities arise from digital adoption, as 67% of guests prefer tech-enabled living, while more than 49% of hospitality groups are expanding their serviced apartment portfolios. Challenges include rising competition, as more than 53% of guests compare serviced apartments with alternative lodging options.

The report also covers technological advancements, sustainability adoption, and shifting traveler demographics, which influence long-term market prospects. Detailed analysis of consumer preferences, such as the 61% preference for private kitchen-equipped units and 46% adoption by leisure travelers, underscores strong market potential. Strategic recommendations, market attractiveness assessment, and risk evaluation form part of the coverage, helping stakeholders understand competitive positioning and future expansion pathways. Overall, the report provides actionable insights for operators, investors, and policymakers shaping the serviced apartments market.