Serviced Apartment Market size is projected to grow from USD 125.27 billion in 2024 to USD 403.19 billion by 2034, with a CAGR surpassing 12.4% throughout the forecast period (2025-2034). The industry revenue for 2025 is anticipated to be USD 139.59 billion.
Growth Drivers & Challenge
The serviced apartment market is experiencing significant growth due to the increasing demand for flexible, comfortable, and cost-effective accommodation among business and leisure travelers. One of the primary growth drivers is the rapid expansion of the global business travel sector. As companies seek long-term accommodation options for employees on extended assignments, serviced apartments offer a more home-like environment compared to traditional hotels, with amenities such as fully equipped kitchens, separate living areas, and housekeeping services. These features make serviced apartments a preferred choice for corporate travelers who require convenience, privacy, and the ability to maintain their daily routines while away from home.
Another major growth driver is the changing preferences of millennial and Gen Z travelers who prioritize personalized experiences and value-driven stays. This demographic prefers accommodations that combine comfort with affordability, particularly during long stays or digital nomad lifestyles. Serviced apartments cater to these preferences by offering flexible stay durations, high-speed internet, and access to local communities, making them an attractive option for both business and leisure travel. The rise of remote work and the blending of business and leisure travel, or “bleisure,” has also led to increased demand for accommodations that can support work-life balance, further propelling market growth.
However, the market faces a significant challenge in the form of regulatory inconsistencies and zoning laws, especially in urban centers. In many cities, the rapid proliferation of serviced apartments has prompted regulatory scrutiny due to concerns about competition with traditional rental housing and potential impacts on local communities. Inconsistent regulations and licensing requirements across jurisdictions can pose operational difficulties for providers, potentially limiting expansion opportunities. Additionally, managing occupancy rates and maintaining service standards across multiple properties can be complex, especially during economic downturns or off-peak travel seasons.
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Regional Analysis
North America
North America remains one of the most developed regions in the serviced apartment market, led by strong demand from corporate travelers and international visitors. The United States and Canada have witnessed significant investment in serviced apartment chains, particularly in major business hubs such as New York, Toronto, San Francisco, and Chicago. The region benefits from a mature real estate market, high urbanization rates, and strong infrastructure, making it conducive for the growth of flexible living options. Additionally, a growing number of startups and technology firms are driving demand for extended-stay accommodations for relocating employees and visiting teams.
Europe
Europe holds a substantial share of the serviced apartment market, supported by a strong tourism sector and a well-established network of corporate clients. Key cities such as London, Paris, Berlin, and Amsterdam are seeing a surge in demand for serviced apartments due to high hotel costs and the need for longer-term stays. The region also benefits from a cultural inclination toward apartment living, which aligns with the serviced apartment model. European travelers often seek accommodations with more space and amenities for family travel, contributing to increased adoption. Furthermore, government support for tourism infrastructure and favorable business travel trends are bolstering market expansion across Western and Central Europe.
Asia Pacific
Asia Pacific is emerging as the fastest-growing region in the serviced apartment market, fueled by rapid urbanization, expanding middle-class populations, and the growing presence of multinational corporations. Cities such as Singapore, Hong Kong, Tokyo, and Bangalore are witnessing heightened demand for serviced apartments among business professionals, expatriates, and medical tourists. The region’s booming real estate and hospitality industries are also encouraging developers to invest in mixed-use properties that include serviced apartments. As travel within Asia continues to increase and intra-regional business ties strengthen, the demand for flexible and comfortable lodging options is expected to rise further. However, disparities in infrastructure development and regulatory barriers still present challenges in some emerging markets.
Segmentation Analysis
By Type
The serviced apartment market is segmented by type into studio apartments, one-bedroom, and multi-bedroom apartments. Studio apartments are popular among solo travelers and short-term business guests due to their affordability and compact design. One-bedroom units cater to individuals or couples who require a bit more space for longer stays, offering separate living and sleeping areas. Multi-bedroom serviced apartments are typically chosen by families, groups, or business teams requiring extended accommodation. These units offer greater privacy, more amenities, and flexibility, making them suitable for long-duration stays in both leisure and corporate segments.
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By End-Use
In terms of end-use, the market is categorized into corporate and leisure segments. The corporate segment accounts for a significant portion of the demand, as companies increasingly seek cost-effective alternatives to traditional hotels for employee relocation, project assignments, and extended business trips. Serviced apartments offer reduced per-night costs over longer stays and enhance employee satisfaction through better living standards. The leisure segment is also growing steadily, driven by tourists who prefer apartment-style accommodations for family vacations or extended holidays. This trend is particularly strong in metropolitan and tourist-heavy cities, where travelers seek convenience, affordability, and localized experiences.
By Booking Mode
Based on booking mode, the market is segmented into online and offline channels. Online booking platforms are dominating the segment due to the digital transformation of the hospitality sector and the rise of aggregator websites, mobile apps, and direct booking channels. Consumers are increasingly relying on digital tools for researching, comparing, and reserving serviced apartments, thanks to user reviews, flexible pricing, and ease of access. Offline booking, though still relevant, is primarily used by corporate clients and travel agencies that require customized arrangements, invoicing, and long-term contracts. The integration of artificial intelligence and data analytics in online platforms is further enhancing the customer experience and boosting the popularity of digital bookings.
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