Europe Serviced Apartment Market 2025 – 2034

Reports Description

As per the Europe Serviced Apartment Market analysis conducted by the CMI team, the Europe serviced apartment market is expected to record a CAGR of 13.15% from 2025 to 2034. In 2025, the market size was USD 40.36 Billion. By 2034, the valuation is anticipated to reach USD 122.21 Billion.

Overview

The key factors shaping the Europe serviced apartment market are inclusive of a shift toward cost-effective and flexible accommodation options improved by technological advancements like smart home features and contactless check-ins. Also, rising preference for homely environments over conventional hotels coupled with an increase in remote working cultures accelerates the demand. Tailored services like health-centric facilities and customizable amenities and sustainability initiatives are further positioning the service apartments as one of the preferred choices in evolving the hospitality landscape.

Rise in the frequency of corporate travel does drive expansion of the market, as demand for flexible, long-term, and cost-effective accommodations is increasing. Business travel, as per the Global Business Travel Association (GBTA), did account for 47% of the travel expenditures at the global level. It further states that the spending reached US$ 1.4 Tn by 2024, thereby surpassing the pre-pandemic levels.

Key Trends & Drivers

• Rise in Demand for Flexible Accommodation Options

The consumers’ preference is shifting in the direction of flexible accommodation solutions, which is basically driving the Europe serviced apartment market. The travellers, millennials and business professionals in particular, are now prioritizing convenience in combination with comforts of home over conventional hotel stays.

Serviced apartments do offer flexibility related to longer stays with amenities like separate living areas, fully equipped kitchens, and laundry facilities, thereby addressing varied lengths of the visits from some days to numerous months. Plus, the rise in demand for digital nomadism and remote work has fuelled the requirement for adaptable living arrangements that do accommodate a blend of leisure and work.

Key business hubs such as London call for service apartments for extended stays, such as hotel-like services.

What's trending in the Europe Serviced Apartment Market?

Oakwood and Marriott’s Residence are leading the innovations pertaining to serviced apartments, thereby providing amenities catering to the long-term stays while keeping up with comforts at home.

Conferences such as the Business Travel Show Europe (2022) and Global Serviced Apartments Summit (2023) have harped on the travelers’ evolving needs, thereby highlighting the successful strategies for improving guest experience. Such events are showcasing the examples of the way serviced apartments are adapting to the hybrid work models, thereby providing not only accommodation but also dedicated workspaces.

What would be Business Impact of the U.S. tariffs on the Europe Services Apartment Market?

The U.S. tariffs are likely to lower the overall growth of Europe's serviced apartment market due to weaker exports. This could translate into lower inflation and more spare capacity. The impactful routes through which inflation could increase would be through European retaliatory tariffs with lower currencies uplifting the import prices in a more general manner. In other words, the impact of U.S. tariffs could be a mixed bag, the outcome could be gauged within the next few months.

Key Threats

• Higher Operational Costs

One of the major restraining factors for Europe's serviced apartment market is the higher price tag involved for keeping them running. They need continual maintenance (unlike regular hotels), management, and cleaning to stay in tip-top position in the long run. All the costs such as housekeeping, utilities, and paying the staff could actually add up, particularly in the hotspots. This does put monetary pressure on property operators and owners, thereby making it difficult to expand or offer competitive prices.

Opportunities

Dublin and Lisbon are being looked upon as prime markets beyond Paris and London. As such, they are seeing a rise in demand for the supply of serviced apartments. Also, southern European countries such as Italy, Spain, and Portugal have been identified as the key expansion targets for several operators. Germany’s Cologne, Hamburg, and Nuremberg are showing notable unit potential.

The other opportunity lies in the redevelopment of existing buildings, which is seen as being more aligned with sustainability goals as compared to new developments. Operators are also increasingly making use of management agreements and exploring the models for growing their portfolios efficiently. Also, collaboration with short-term rental platforms and online travel agencies could improve accessibility for a wider consumer base.

Category Wise Insights

By Type

• Long-term [>30 Nights]

The present scenario is such that there is a rise in preference for serviced apartments pertaining to long-term stays owing to them providing hotel-like amenities and home-like comfort simultaneously. The serviced apartments are reported to offer more privacy, space, and flexibility in comparison with conventional hotels. The features include separate living areas and fully equipped kitchens. Also, they do prove to be cost-effective for longer duration as rates turn out to be more competitive as compared to hotels.

• Short-term [<30 Nights]

Serviced apartments that are meant for short-term stays account for more than 60% of the market share. This could be credited to the flexibility and convenience offered on their part as compared to hotels. In other words, they do offer homelike amenities for business professionals, travellers, or temporary relocators. Plus, the serviced apartments do come with various housekeeping services, thereby providing a ready-to-live option for those who are categorized as short-term visitors.

By Booking Mode

• Direct Booking

Direct booking accounts for more than 40% of the market share. This could be reasoned with the fact that a direct approach allows for competitive pricing by eliminatingintermediary commissions, thereby raising profit margins. Plus, direct bookings do enable improved customer data acquisition, which enables customized marketing strategies with personalized service offerings. These measures do boost repeat business out of customer loyalty.

• Online Travel Agencies

Online travel agencies (OTAs) provide customers with transparency and better choices. They also address demand from remote workers and digital nomads for the longer-term stays. OTAs do allow independent and small serviced apartment providers to reach global travelers and compete with the bigger hotel chains, thereby driving expansion across Europe. While the serviced apartment operators are increasingly investing in technology, the OTAs emphasize sophisticated research, booking tools, and comparison to improve overall functionality and appeal of such accommodations.

• Corporate Contracts

Sales through corporate contracts are likely to witness a CAGR of 14.2% during the forecast period. Use of corporate contractors for booking the serviced apartments is catalysed by numerous business imperatives. It lets companies negotiate the preferential terms and rates through volume bookings, thereby optimizing the cost-efficiency in relocation budgets and corporate travel. Such contractors do provide centralized billing systems and streamlined booking processes, reducing administrative overheads for travel management and HR departments and improving operational efficiency.

By End-use

• Corporate/Business Travelers

Serviced apartments for corporate/business travelers hold over 50% of the market share. This could be credited to the market benefiting from an increase in ‘bleisure travel’, wherein the professionals do combine trips with leisure, thereby necessitating well-equipped and spacious lodgings. Market expansion is also inclusive of rising preference for self-contained living spaces and growing adoption of remote work policies for the extended stays.

• Leisure Travelers

Leisure travellers are known for staying in serviced apartments during short trips and vacations, particularly in the tourist areas. They are flexible, affordable, and offer greater space as compared to hotels. Such apartments are ideal for groups or families, with home-like features such as living rooms and kitchens. Also, a heightened emphasis on safety, health, and privacy in the post-pandemic era has rendered serviced apartments one of the preferred options for travellers seeking better control over their environment.

• Expats and Relocators

Demand for serviced apartments for expats and relocators is expected to witness a CAGR of ~15% during the forecast period. Such accommodations do offer one of the seamless transitions to a new location, thereby providing a home-like environment with convenience provided by the hotel services. Such apartments generally come 100% furnished with kitchens, which does reduce logistical challenges and setup costs for newcomers. Furthermore, provision of housekeeping, utilities, and localized cultural orientation services improves their appeal.

How is AI impacting the Europe Serviced Apartment Market?

AI-powered chatbots and customized recommendations help in raising the guest satisfaction quotient in the Europe serviced apartment market. The operational advantages encompass smart energy usage, predictive maintenance, automated routine tasks, and decision-making that is data-driven. Even though the benefits are notable, the operators need to navigate the evolving data privacy regulations like the AI Act of the EU, so as to ascertain successful and compliant AI adoption.

Report Scope

Key Developments

The Europe serviced apartment market is witnessing a significant organic and inorganic expansion. Some of the key developments include -

• In August 2024, Ascott Limited did announce that it would be expanding in India, thereby adhering to its commitment of improving its footprint herein.

• In August 2024, Frasers Hospitality did announce its ambitious plan of opening 20 new properties over the subsequent four years, thereby reflecting commitment toward expansion of its global footprint. The expansion is expected to target key markets all across Europe, Asia Pacific, and the Americas.

• In July 2024, Ascott Limited did announce a partnership at the global level with Chelsea FC, thereby improving its brand visibility as well as engagement throughout the world.

Leading Players

The Europe serviced apartment market is highly competitive, with a large number of service providers globally. Some of the key players in the market include:

• The Ascott Limited
• Frasers Hospitality
• The Serviced Apartment Company
• Staycity Ltd.
• Habicus Group
• adiahotels.com
• Viridian Apartments
• Adagio
• Marriott International Inc.
• Others

These firms apply a plethora of strategies to enter the market, including innovations, mergers and acquisitions, and collaboration. The Europe serviced apartment market is shaped by the presence of diversified players that compete based on product innovation, vertical integration, and cost efficiency.

Regional Coverage:

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe