serviced apartment market report size, share, growth drivers, trends, opportunities & forecast 2025–2030
Description
Serviced Apartment Market Overview
The serviced apartment market is valued at USD 124 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for flexible accommodation options among business travelers and tourists, as well as the rise in remote work and digital nomadism. The market has seen a significant shift towards longer stays, with serviced apartments offering amenities that cater to both leisure and corporate clients. Recent trends also highlight the adoption of smart technologies, sustainability initiatives, and a growing preference for home-like environments over traditional hotels, further accelerating demand .
Key players in this market include major cities such as London, New York, and Singapore, which dominate due to their status as global business hubs and tourist destinations. The concentration of multinational corporations, coupled with a high influx of international travelers, has led to robust demand for serviced apartments in these regions, making them attractive for investment and development. North America continues to lead the market, supported by a mature hospitality ecosystem and strong corporate travel demand .
In 2023, the government of Singapore implemented regulations to enhance the serviced apartment sector, mandating that all serviced apartments must register with the Urban Redevelopment Authority under the Planning (Serviced Apartments) Rules 2023 issued by the Urban Redevelopment Authority. This regulation requires operators to comply with prescribed safety standards, maintain minimum operational requirements, and ensure regular inspections, thereby enhancing the overall guest experience and maintaining the integrity of the market.
Serviced Apartment Market Segmentation
By Type:
The serviced apartment market can be segmented into various types, including luxury serviced apartments, mid-range serviced apartments, budget serviced apartments, extended stay hotels, boutique serviced apartments, on-site managed serviced apartments, and off-site managed serviced apartments. Each type caters to different consumer preferences and price points. Luxury and boutique options are increasingly favored by affluent travelers seeking premium amenities, privacy, and personalized services, while budget and mid-range options remain attractive to cost-conscious guests and long-term stayers. The integration of smart technologies and customizable services is becoming a key differentiator in the luxury and boutique segments .
By End-User:
The end-user segmentation of the serviced apartment market includes corporate/business travelers, leisure travelers, expats and relocators, and families. Corporate travelers are the largest segment, driven by the need for flexible accommodation solutions that provide a home-like environment during business trips. Leisure travelers also contribute significantly, seeking comfortable and spacious options for vacations, while expats and families look for longer-term stays with amenities that cater to their specific needs. The rise in remote work and project-based assignments has further increased demand among business travelers and relocating professionals .
Serviced Apartment Market Competitive Landscape
The serviced apartment market is characterized by a dynamic mix of regional and international players. Leading participants such as Marriott International, Inc., The Ascott Limited, Oakwood Worldwide, Frasers Hospitality, Stay
idge Suites (IHG), Hilton Worldwide Holdings Inc., InterContinental Hotels Group (IHG), Accor S.A., Residence Inn by Marriott, Adina Apartment Hotels (TFE Hotels), Quest Apartment Hotels, SACO (The Serviced Apartment Company), The Apartment Service,
idgeStreet Global Hospitality, TFE Hotels contribute to innovation, geographic expansion, and service delivery in this space.
Marriott International, Inc.
1927
Bethesda, Maryland, USA
The Ascott Limited
1984
Singapore
Oakwood Worldwide
1960
Los Angeles, California, USA
Frasers Hospitality
1998
Singapore
Stay
idge Suites (IHG)
1997
Denham, Buckinghamshire, UK
Company
Establishment Year
Headquarters
Geographic Presence (Countries/Regions)
Occupancy Rate (%)
Average Daily Rate (ADR, USD)
Revenue Per Available Room (RevPAR, USD)
Customer Satisfaction Score (e.g., Net Promoter Score)
Length of Stay (Average Nights)
Serviced Apartment Market Industry Analysis
Growth Drivers
Increasing Demand for Flexible Accommodation:
The serviced apartment sector is experiencing a surge in demand, driven by a shift towards flexible living arrangements. In the future, the global demand for flexible accommodation is projected to reach 1.5 million units, reflecting a 20% increase from the previous year. This trend is fueled by changing consumer preferences, with 60% of travelers seeking accommodations that offer both comfort and convenience, particularly for extended stays, according to industry reports.
Rise in Corporate Travel and Relocation:
Corporate travel is expected to rebound significantly in the future, with business travel spending projected to reach $1.5 trillion globally. This resurgence is driving demand for serviced apartments, which provide a cost-effective solution for companies relocating employees. Approximately 70% of corporations are opting for serviced apartments over traditional hotels, as they offer more space and amenities, catering to the needs of traveling professionals.
Growth in Tourism and Leisure Travel:
The tourism sector is anticipated to grow, with international tourist arrivals expected to hit 1.8 billion in the future, a 15% increase from the previous year. This growth is bolstering the serviced apartment market, as travelers increasingly prefer accommodations that provide a home-like experience. Notably, 55% of leisure travelers are choosing serviced apartments for their unique offerings, which include kitchen facilities and living spaces, enhancing their overall travel experience.
Market Challenges
High Competition from Traditional Hotels:
The serviced apartment market faces intense competition from traditional hotels, which are well-established and often preferred by travelers. In the future, the hotel industry is projected to generate $1 trillion in revenue, overshadowing serviced apartments. This competition pressures serviced apartment operators to innovate and differentiate their offerings, as 40% of consumers still favor hotels for their perceived reliability and service quality.
Regulatory Hurdles and Compliance Issues:
Serviced apartment operators are increasingly confronted with regulatory challenges, including licensing and zoning laws. In the future, over 30% of serviced apartments are expected to face compliance issues, particularly in urban areas where regulations are tightening. This can lead to increased operational costs and potential fines, impacting profitability and market entry for new players in the industry.
Serviced Apartment Market Future Outlook
The serviced apartment market is poised for significant transformation in the coming years, driven by evolving consumer preferences and technological advancements. As urbanization continues, the demand for flexible living solutions will likely increase, particularly in metropolitan areas. Additionally, the integration of smart technology in serviced apartments will enhance guest experiences, making them more appealing. Companies that adapt to these trends and focus on sustainability will be well-positioned to capture market share and drive growth in this dynamic sector.
Market Opportunities
Growth in Long-Term Stays and Serviced Living:
The trend towards long-term stays is creating opportunities for serviced apartments, with a projected increase of 25% in long-term bookings in the future. This shift is driven by remote work and digital nomadism, allowing operators to cater to a growing segment of travelers seeking extended accommodations.
Technological Advancements in Property Management:
The adoption of advanced property management systems is set to enhance operational efficiency in serviced apartments. In the future, 40% of serviced apartment operators are expected to implement AI-driven solutions, improving guest services and streamlining operations, which can significantly boost profitability and customer satisfaction.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
The serviced apartment market is valued at USD 124 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for flexible accommodation options among business travelers and tourists, as well as the rise in remote work and digital nomadism. The market has seen a significant shift towards longer stays, with serviced apartments offering amenities that cater to both leisure and corporate clients. Recent trends also highlight the adoption of smart technologies, sustainability initiatives, and a growing preference for home-like environments over traditional hotels, further accelerating demand .
Key players in this market include major cities such as London, New York, and Singapore, which dominate due to their status as global business hubs and tourist destinations. The concentration of multinational corporations, coupled with a high influx of international travelers, has led to robust demand for serviced apartments in these regions, making them attractive for investment and development. North America continues to lead the market, supported by a mature hospitality ecosystem and strong corporate travel demand .
In 2023, the government of Singapore implemented regulations to enhance the serviced apartment sector, mandating that all serviced apartments must register with the Urban Redevelopment Authority under the Planning (Serviced Apartments) Rules 2023 issued by the Urban Redevelopment Authority. This regulation requires operators to comply with prescribed safety standards, maintain minimum operational requirements, and ensure regular inspections, thereby enhancing the overall guest experience and maintaining the integrity of the market.
Serviced Apartment Market Segmentation
By Type:
The serviced apartment market can be segmented into various types, including luxury serviced apartments, mid-range serviced apartments, budget serviced apartments, extended stay hotels, boutique serviced apartments, on-site managed serviced apartments, and off-site managed serviced apartments. Each type caters to different consumer preferences and price points. Luxury and boutique options are increasingly favored by affluent travelers seeking premium amenities, privacy, and personalized services, while budget and mid-range options remain attractive to cost-conscious guests and long-term stayers. The integration of smart technologies and customizable services is becoming a key differentiator in the luxury and boutique segments .
By End-User:
The end-user segmentation of the serviced apartment market includes corporate/business travelers, leisure travelers, expats and relocators, and families. Corporate travelers are the largest segment, driven by the need for flexible accommodation solutions that provide a home-like environment during business trips. Leisure travelers also contribute significantly, seeking comfortable and spacious options for vacations, while expats and families look for longer-term stays with amenities that cater to their specific needs. The rise in remote work and project-based assignments has further increased demand among business travelers and relocating professionals .
Serviced Apartment Market Competitive Landscape
The serviced apartment market is characterized by a dynamic mix of regional and international players. Leading participants such as Marriott International, Inc., The Ascott Limited, Oakwood Worldwide, Frasers Hospitality, Stay
idge Suites (IHG), Hilton Worldwide Holdings Inc., InterContinental Hotels Group (IHG), Accor S.A., Residence Inn by Marriott, Adina Apartment Hotels (TFE Hotels), Quest Apartment Hotels, SACO (The Serviced Apartment Company), The Apartment Service,
idgeStreet Global Hospitality, TFE Hotels contribute to innovation, geographic expansion, and service delivery in this space.
Marriott International, Inc.
1927
Bethesda, Maryland, USA
The Ascott Limited
1984
Singapore
Oakwood Worldwide
1960
Los Angeles, California, USA
Frasers Hospitality
1998
Singapore
Stay
idge Suites (IHG)
1997
Denham, Buckinghamshire, UK
Company
Establishment Year
Headquarters
Geographic Presence (Countries/Regions)
Occupancy Rate (%)
Average Daily Rate (ADR, USD)
Revenue Per Available Room (RevPAR, USD)
Customer Satisfaction Score (e.g., Net Promoter Score)
Length of Stay (Average Nights)
Serviced Apartment Market Industry Analysis
Growth Drivers
Increasing Demand for Flexible Accommodation:
The serviced apartment sector is experiencing a surge in demand, driven by a shift towards flexible living arrangements. In the future, the global demand for flexible accommodation is projected to reach 1.5 million units, reflecting a 20% increase from the previous year. This trend is fueled by changing consumer preferences, with 60% of travelers seeking accommodations that offer both comfort and convenience, particularly for extended stays, according to industry reports.
Rise in Corporate Travel and Relocation:
Corporate travel is expected to rebound significantly in the future, with business travel spending projected to reach $1.5 trillion globally. This resurgence is driving demand for serviced apartments, which provide a cost-effective solution for companies relocating employees. Approximately 70% of corporations are opting for serviced apartments over traditional hotels, as they offer more space and amenities, catering to the needs of traveling professionals.
Growth in Tourism and Leisure Travel:
The tourism sector is anticipated to grow, with international tourist arrivals expected to hit 1.8 billion in the future, a 15% increase from the previous year. This growth is bolstering the serviced apartment market, as travelers increasingly prefer accommodations that provide a home-like experience. Notably, 55% of leisure travelers are choosing serviced apartments for their unique offerings, which include kitchen facilities and living spaces, enhancing their overall travel experience.
Market Challenges
High Competition from Traditional Hotels:
The serviced apartment market faces intense competition from traditional hotels, which are well-established and often preferred by travelers. In the future, the hotel industry is projected to generate $1 trillion in revenue, overshadowing serviced apartments. This competition pressures serviced apartment operators to innovate and differentiate their offerings, as 40% of consumers still favor hotels for their perceived reliability and service quality.
Regulatory Hurdles and Compliance Issues:
Serviced apartment operators are increasingly confronted with regulatory challenges, including licensing and zoning laws. In the future, over 30% of serviced apartments are expected to face compliance issues, particularly in urban areas where regulations are tightening. This can lead to increased operational costs and potential fines, impacting profitability and market entry for new players in the industry.
Serviced Apartment Market Future Outlook
The serviced apartment market is poised for significant transformation in the coming years, driven by evolving consumer preferences and technological advancements. As urbanization continues, the demand for flexible living solutions will likely increase, particularly in metropolitan areas. Additionally, the integration of smart technology in serviced apartments will enhance guest experiences, making them more appealing. Companies that adapt to these trends and focus on sustainability will be well-positioned to capture market share and drive growth in this dynamic sector.
Market Opportunities
Growth in Long-Term Stays and Serviced Living:
The trend towards long-term stays is creating opportunities for serviced apartments, with a projected increase of 25% in long-term bookings in the future. This shift is driven by remote work and digital nomadism, allowing operators to cater to a growing segment of travelers seeking extended accommodations.
Technological Advancements in Property Management:
The adoption of advanced property management systems is set to enhance operational efficiency in serviced apartments. In the future, 40% of serviced apartment operators are expected to implement AI-driven solutions, improving guest services and streamlining operations, which can significantly boost profitability and customer satisfaction.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
Table of Contents
97 Pages
- 1. serviced apartment size, share, growth drivers, trends, opportunities & – Market Overview
- 1.1. Definition and Scope
- 1.2. Market Taxonomy
- 1.3. Market Growth Rate
- 1.4. Market Segmentation Overview
- 2. serviced apartment size, share, growth drivers, trends, opportunities & – Market Size (in USD Bn), 2019–2024
- 2.1. Historical Market Size
- 2.2. Year-on-Year Growth Analysis
- 2.3. Key Market Developments and Milestones
- 3. serviced apartment size, share, growth drivers, trends, opportunities & – Market Analysis
- 3.1. Growth Drivers
- 3.1.1. Increasing demand for flexible accommodation
- 3.1.2. Rise in corporate travel and relocation
- 3.1.3. Growth in tourism and leisure travel
- 3.1.4. Expansion of urban areas and infrastructure
- 3.2. Restraints
- 3.2.1. High competition from traditional hotels
- 3.2.2. Regulatory hurdles and compliance issues
- 3.2.3. Fluctuating demand due to economic conditions
- 3.2.4. Managing operational costs and profitability
- 3.3. Opportunities
- 3.3.1. Growth in long-term stays and serviced living
- 3.3.2. Technological advancements in property management
- 3.3.3. Partnerships with travel agencies and corporations
- 3.3.4. Expansion into emerging markets
- 3.4. Trends
- 3.4.1. Increasing focus on sustainability and eco-friendly practices
- 3.4.2. Integration of smart technology in serviced apartments
- 3.4.3. Customization of services for diverse clientele
- 3.4.4. Growth of online booking platforms
- 3.5. Government Regulation
- 3.5.1. Licensing requirements for serviced apartments
- 3.5.2. Taxation policies affecting short-term rentals
- 3.5.3. Health and safety regulations
- 3.5.4. Zoning laws impacting property usage
- 3.6. SWOT Analysis
- 3.7. Stakeholder Ecosystem
- 3.8. Competition Ecosystem
- 4. serviced apartment size, share, growth drivers, trends, opportunities & – Market Segmentation, 2024
- 4.1. By Type (in Value %)
- 4.1.1. Luxury Serviced Apartments
- 4.1.2. Mid-Range Serviced Apartments
- 4.1.3. Budget Serviced Apartments
- 4.1.4. Extended Stay Hotels
- 4.1.5. Others
- 4.2. By End-User (in Value %)
- 4.2.1. Corporate/Business Travelers
- 4.2.2. Leisure Travelers
- 4.2.3. Expats and Relocators
- 4.2.4. Families
- 4.3. By Application (in Value %)
- 4.3.1. Short-Term Rentals
- 4.3.2. Long-Term Rentals
- 4.4. By Pricing Strategy (in Value %)
- 4.4.1. Premium Pricing
- 4.4.2. Competitive Pricing
- 4.4.3. Value-Based Pricing
- 4.5. By Investment Source (in Value %)
- 4.5.1. Private Investments
- 4.5.2. Institutional Investments
- 4.5.3. Public-Private Partnerships
- 4.6. By Region (in Value %)
- 4.6.1. North India
- 4.6.2. South India
- 4.6.3. East India
- 4.6.4. West India
- 4.6.5. Central India
- 4.6.6. Northeast India
- 4.6.7. Union Territories
- 5. serviced apartment size, share, growth drivers, trends, opportunities & – Market Cross Comparison
- 5.1. Detailed Profiles of Major Companies
- 5.1.1. Marriott International, Inc.
- 5.1.2. The Ascott Limited
- 5.1.3. Oakwood Worldwide
- 5.1.4. Frasers Hospitality
- 5.1.5. Staybridge Suites (IHG)
- 5.2. Cross Comparison Parameters
- 5.2.1. Number of Properties/Units Managed
- 5.2.2. Geographic Presence (Countries/Regions)
- 5.2.3. Occupancy Rate (%)
- 5.2.4. Average Daily Rate (ADR, USD)
- 5.2.5. Revenue Per Available Room (RevPAR, USD)
- 6. serviced apartment size, share, growth drivers, trends, opportunities & – Market Regulatory Framework
- 6.1. Building Standards
- 6.2. Compliance Requirements and Audits
- 6.3. Certification Processes
- 7. serviced apartment size, share, growth drivers, trends, opportunities & – Market Future Size (in USD Bn), 2025–2030
- 7.1. Future Market Size Projections
- 7.2. Key Factors Driving Future Market Growth
- 8. serviced apartment size, share, growth drivers, trends, opportunities & – Market Future Segmentation, 2030
- 8.1. By Type (in Value %)
- 8.2. By End-User (in Value %)
- 8.3. By Application (in Value %)
- 8.4. By Pricing Strategy (in Value %)
- 8.5. By Investment Source (in Value %)
- 8.6. By Region (in Value %)
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