SERVICED APARTMENT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025 - 2032)

Global Serviced Apartment Market Size and Forecast – 2025-2032  

The Global Serviced Apartment Market is estimated to be valued at USD 124.16 Bn in 2025 and is expected to reach USD 284.93 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 12.6% from 2025 to 2032.

Key Takeaways of the Serviced Apartment Market

• The luxury serviced apartments segment is expected to hold a 37.6% share of the market in 2025, driven by the rising demand for premium accommodations offering home-like comfort and high-end amenities
• The business travelers segment is projected to lead the global serviced apartment market in 2025 with a 36.5% share, propelled by corporate professionals’ demand for flexible, convenient, and cost-effective stays that enhance productivity on the road
• The direct booking segment is expected to account for 42.6% of the global serviced apartment market in 2025, fueled by travelers’ preference for more control, personalized experiences, and better value
• North America is set to lead the global serviced apartment market in 2025 with a 38.8% share, driven by the increasing demand for flexible and cost-effective accommodation solutions from business travelers and long-term stays. Asia Pacific, with a 11.5% share in 2025, will be the fastest-growing region, fueled by rising disposable incomes, rapid urbanization, and the growing popularity of serviced apartments in key cities like Singapore, Tokyo, and Sydney.

Market Overview

Key trends shaping the serviced apartment market include the shift towards flexible and cost-effective accommodation options, enhanced by technological advancements such as contactless check-ins and smart home features. Moreover, the growing preference for homely environments over traditional hotels, coupled with rising remote working cultures, accelerates demand. Sustainability initiatives and tailored services, such as customizable amenities and health-centric facilities, further position serviced apartments as a preferred choice in the evolving hospitality landscape.

Current Events and Its Impact

Uncover macros and micros vetted on 75+ parameters: Get instant access to report

Segmental Insights

To learn more about this report, Request sample copy

Serviced Apartment Market Insights, By Type - Luxury Serviced Apartments Segment Dominates due to Premium Experience and Elite Clientele

The luxury serviced apartments segment is expected to contribute 37.6% share of the global serviced apartment market in 2025, primarily fueled by the growing demand for premium living accommodations that combine the comforts of home with upscale hotel-like amenities. Affluent travelers and corporate executives prioritize exclusivity, privacy, and superior quality, which luxury serviced apartments are uniquely positioned to deliver. These apartments often feature expansive living spaces, state-of-the-art facilities, bespoke interior designs, and high-end services such as personalized concierge support, private gyms, and gourmet kitchens, catering to the sophisticated preferences of their clientele.

Serviced Apartment Market Insights, By Application - The Business Travelers Segment Leads the Market, Driven by the Availability of Cost-effective Accommodation Solutions that Enhance Productivity while on the Move

The business travelers segment is projected to dominate the global serviced apartment market in 2025, having 36.5% share of the market, driven by the evolving needs of corporate professionals seeking flexible, convenient, and cost-efficient accommodation options that support productivity during travel. Increasing global business activities, cross-border assignments, and temporary project deployments require lodging solutions that offer more than just a room—they demand a living environment conducive to work and rest.

Serviced apartments meet this demand by providing comprehensive facilities such as dedicated workspaces, reliable high-speed internet, and fully equipped kitchens, enabling business travelers to maintain their routines and comfort levels while on the move.

Serviced Apartment Market Insights, By Booking Mode - Direct Booking’s Dominance is Fueled by Enhanced Customer Trust and Control

The direct booking segment is projected to hold 42.6% share within the global serviced apartment market in 2025, driven by travelers’ preference for greater control, personalized service, and cost-effectiveness. Direct booking channels typically facilitate direct engagement between guests and property managers or owners, fostering trust and transparent communication often absent in third-party booking platforms. This direct relationship enables travelers to negotiate customized packages, secure best available rates without intermediaries, and gain assurance over specific room preferences and special requests.

Regional Insights

To learn more about this report, Request sample copy

North America Serviced Apartment Market Analysis and Trends

The North America region is projected to lead the market with a 38.8% share in 2025, which stems from a mature hospitality ecosystem fueled by robust business travel and prolonged stay demand. The region benefits from a well-established network of corporate clients, expatriates, and domestic travelers looking for flexible lodging solutions.

Government policies supporting tourism and business infrastructure investments have further enhanced market stability. Key industry players, such as Marriott International (with its Element and Residence Inn brands), Oakwood Worldwide, and Aimbridge Hospitality, have expanded their serviced apartment portfolios, contributing significantly to market penetration. Additionally, the presence of major financial and technology hubs in cities like New York, San Francisco, and Toronto sustains strong demand for serviced apartments, establishing North America as the leading region.

Asia Pacific Serviced Apartment Market Analysis and Trends

The Asia Pacific region is expected to exhibit the fastest growth in the market contributing 11.5% share in 2025 driven by rapid urbanization, increasing foreign direct investment, rising expatriate population, and growing middle-class affluence. Market dynamics are further bolstered by government initiatives promoting tourism and foreign business establishment, notably in countries such as China, India, Japan, South Korea, and Southeast Asia. The evolving corporate culture and increasing frequency of long-term business assignments create strong demand for flexible and cost-effective accommodation options.

Notable companies like Ascott Limited (a CapitaLand subsidiary), Oakwood Asia Pacific, and Frasers Hospitality are aggressively expanding their serviced apartment offerings across major cities like Shanghai, Singapore, Tokyo, and Mumbai, capitalizing on the burgeoning demand. Trade liberalization and the expansion of multinational enterprises in the region also drive the adoption of serviced apartments as preferred lodging alternatives to traditional hotels.

Global Serviced Apartment Market Outlook for Key Countries

U.S. Serviced Apartment Market Trends

The U.S. serviced apartment market is characterized by a high level of sophistication supported by a diverse range of players offering fully furnished apartments catering to business travelers, relocating professionals, and leisure tourists. Marriott International and Aimbridge Hospitality dominate with extensive portfolios, especially in metropolitan areas such as New York, Los Angeles, and Chicago. The country's favorable business climate and steady demand from technology and financial sectors secure continued interest in serviced apartments, complemented by well-established online booking platforms improving accessibility and convenience.

China Serviced Apartment Market Trends

China continues to lead Asia Pacific’s expansion through rapid urbanization and increasing domestic travel alongside foreign investment inflows. Major operators like Ascott Limited and Oakwood capitalize on demands in cities including Shanghai, Beijing, and Guangzhou by providing high-quality serviced apartments designed to attract business travelers and expatriate communities. Government support for infrastructure and tourism development further strengthens the market environment, while rising disposable incomes increase popular adoption for longer stays in major urban centers.

U.K. Serviced Apartment Market

The U.K. serviced apartment market benefits from its strategic location as a global financial and business hub, especially within London. Strong demand from corporate clients, including relocating professionals and consultants, sustains growth. Companies, such as The Serviced Apartment Company (SACO) and Quest Apartment Hotels, have substantial market presence offering flexible living spaces meeting the needs of international travelers. Post-Brexit regulatory modifications have not deterred demand but rather prompted adaptation focusing on personalized service and extended stay offerings.

India Serviced Apartment Market

India serviced apartment market is emerging vigorously, fueled by expanding multinational corporations and increasing numbers of business travelers requiring medium to long-term accommodations. Key markets like Mumbai, Bengaluru, and New Delhi see dominant activity from players such as Ascott Limited and The Lalit Suri Hospitality Group. Government initiatives promoting ease of doing business and investments in commercial infrastructure support this growth. The evolving consumer preference for independent living spaces with hotel-like amenities positions serviced apartments as preferred options versus traditional hotels.

Microeconomic and Macroeconomic Factors Both Significantly Impact on Serviced Apartment Market

Macroeconomic factors include

• GDP growth: Economic expansion increases business travel and relocation, boosting the demand for serviced apartments.
• Consumer confidence: Higher confidence encourages both business and leisure travel, supporting occupancy rates.
• Inflation: Rising costs for utilities, furniture, and services have squeezed profit margins and increased rates for serviced apartments, especially since 2022.
• Urbanization: Rapid urban growth and infrastructure development in cities like Shanghai, Mumbai, Tokyo, and Sydney drive the demand for flexible accommodation solutions.
• Global business travel: Business travel spending rose by 47% to USD 1.03 trillion in 2022, with further growth forecasted, directly supporting serviced apartment demand.
• Regulatory environment: Stringent health, safety, and zoning regulations can increase operational costs and affect market entry.

Microeconomic factors include

• Location: Proximity to business hubs, transport, and amenities strongly influences occupancy and pricing.
• Property features: Apartments with modern amenities, flexible lease terms, and smart technology attract higher demand.
• Customer segments: Business travelers, expats, digital nomads, and tourists each have distinct needs, affecting length of stay and service requirements.
• Competitive landscape: Operators offering direct booking, flexible contracts, and value-added services gain market share.
• Supply and demand: The balance of available units versus incoming supply directly impacts pricing and occupancy rates.

Market Players, Key Development, and Competitive Intelligence

To learn more about this report, Request sample copy

Key Developments

• In August 2024, Ascott Limited announced plans to expand its operations in India, reinforcing its commitment to strengthening its presence in the country. The company intends to launch several new properties across major cities, tapping into the rising demand for serviced apartments fueled by business travel and extended stays. This strategic expansion is part of Ascott’s broader growth agenda to seize opportunities in India’s rapidly developing market and build a more robust foothold in one of the world’s fastest-growing economies.
• In July 2024, Ascott Limited unveiled a global partnership with Chelsea FC, aimed at boosting brand visibility and engagement through the exclusive Chelsea FC Global Hotels Partnership. This collaboration is designed to harness Chelsea FC’s worldwide fanbase to promote Ascott’s serviced apartments and broaden its market reach. The alliance will feature co-branded marketing campaigns and special benefits for Chelsea FC supporters, reinforcing Ascott’s leadership in the global serviced apartment industry while connecting with one of football’s most prominent audiences.
• In August 2024, Frasers Hospitality revealed plans to open 20 new properties over the next four years, highlighting its dedication to expanding its international presence. This strategic initiative seeks to capitalize on the post-pandemic rebound and surging demand for serviced apartments. The expansion will focus on key destinations across Asia Pacific, Europe, and the Americas, with the goal of consolidating Frasers Hospitality’s competitive position and meeting the growing need for flexible, premium accommodation solutions.

Top Strategies Followed by Global Serviced Apartment Market Players

• Established players maintain a dominant position by investing heavily in research and development (R&D) to continuously innovate high-performance products that meet evolving consumer demands and enhance guest experiences. Their R&D efforts often focus on integrating advanced technologies, sustainable materials, and smart features that appeal to modern travelers seeking comfort and convenience.
  • For example, The Ascott Limited has dedicated substantial R&D resources to develop Lyf-branded co-living spaces, integrating smart home automation systems, app-based access, and energy-efficient designs that resonate with millennial and Gen Z travelers.

• Mid-level players in the serviced apartment market adopt a distinctly cost-conscious approach, focusing on delivering value-driven solutions that balance quality with affordability. Understanding the price sensitivity of a significant segment of travelers, especially budget-conscious business professionals and long-stay tourists, these companies tailor their offerings to optimize cost efficiency without sacrificing essential amenities.
  • For instance, Oakwood Management, a mid-tier provider, offers fully furnished units with essential amenities like kitchenettes and workspaces, but without the extensive luxury add-ons of premium brands. Recognizing the price sensitivity of budget-conscious business professionals and long-stay tourists, these companies optimize operating costs through standardized designs and partnerships with regional suppliers to secure favorable pricing on furnishings and utilities.

• Small-scale players, often characterized by their agility and innovation, carve out niche markets by focusing on specialized features or introducing novel products tailored to specific regional demands or customer preferences.
  • For example, Zoku in Amsterdam, has embraced eco-friendly construction and modular interiors to attract sustainability-minded guests. Its strategic emphasis lies in adopting cutting-edge technologies—like IoT-enabled lighting, voice-controlled amenities, or personalized guest services—allowing them to compete effectively despite limited resources.

Market Report Scope

Serviced Apartment Market Report Coverage

Serviced Apartment Market Dynamics

To learn more about this report, Request sample copy

Serviced Apartment Market Driver - Increasing Demand for Flexible Accommodation Options

The shift in consumer preference towards flexible accommodation solutions is significantly driving the growth of the serviced apartment market globally. Travelers, especially business professionals and millennials, now prioritize convenience combined with the comforts of home over traditional hotel stays, business tourism. Serviced apartments offer the flexibility of longer stays with amenities such as fully equipped kitchens, separate living areas, and laundry facilities, catering to varied lengths of visits from a few days to several months. Additionally, the rise of remote work and digital nomadism has further fueled the need for adaptable living arrangements that accommodate a blend of work and leisure.

For instance, companies, such as The Ascott Limited and Frasers Hospitality, have expanded their portfolios to include serviced apartments with fully equipped kitchens, separate living areas, and dedicated workspaces to cater to long-stay guests and remote workers. In key business hubs like London, Singapore, and New York, serviced apartments are increasingly favored by project-based consultants, relocating employees, and digital nomads who require extended stays with hotel-like services.

Serviced Apartment Market Opportunity - Expansion in Emerging Markets with Rising Disposable Incomes

The global serviced apartment market presents a significant opportunity through its expansion into emerging markets characterized by rapidly increasing disposable incomes and evolving consumer preferences. Countries in regions, such as Asia Pacific, Latin America, and parts of Africa, are witnessing substantial economic growth, urbanization, and a burgeoning middle class with greater spending power. This demographic shift is driving the demand for flexible, cost-effective, and comfortable accommodation solutions, particularly among business travelers, online travel, expatriates, and long-stay tourists who seek alternatives to traditional hotels.

For instance, according to the World Bank's 2022 data, India's GDP per capita increased by 8.7% in 2021-22, reaching USD 2,389, while Vietnam recorded a 6.0% increase to USD 4,110 per capita. This economic prosperity is fundamentally altering consumer behavior, with professionals and families increasingly seeking flexible, premium accommodation solutions that offer the comfort of home combined with hotel-like amenities.

Analyst Opinion (Expert Opinion)

• The serviced apartment market is poised for substantial growth, driven by the rising demand for flexible living solutions among business travelers and remote workers. Companies like Marriott’s Residence Inn and Oakwood are leading innovations in this space, offering amenities that cater to long-term stays while maintaining the comforts of home.
• Recent conferences, such as the Global Serviced Apartments Summit (2023) and the Business Travel Show Europe (2022), have underscored the evolving needs of travelers, highlighting successful strategies for integrating technology and enhancing guest experiences. These events have showcased examples of how serviced apartments are adapting to hybrid work models, providing not just accommodation but also dedicated workspaces. As the trend toward remote work and longer stays continues, the serviced apartment market is well-positioned for significant expansion, driven by innovations that meet the changing preferences of modern travelers.

Market Segmentation

•  Type Insights (Revenue, USD Bn, 2020 - 2032)
  • Luxury Serviced Apartments
  • Mid-Range Serviced Apartments
  • Budget Serviced Apartments
  • Others
•  Application Insights (Revenue, USD Bn, 2020 - 2032)
  • Business Travelers
  • Leisure Travelers
  • Long-Term Stay
  • Others
•  Booking Mode Insights (Revenue, USD Bn, 2020 - 2032)
  • Direct Booking
  • Online Travel Agencies
  • Corporate Contracts
  • Online
•  Lease Duration Insights (Revenue, USD Bn, 2020 - 2032)
  • Long-Term (More Than 30 Nights)
  • Short-Term (Less Than 30 Nights)
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Marriott International, Inc.
  • The Ascott Limited
  • Oakwood Worldwide
  • InterContinental Hotels Group (IHG)
  • Fraser Hospitality
  • Staybridge Suites
  • Citadines Apart'hotel
  • Residence Inn by Marriott
  • Hilton Worldwide Holdings Inc.
  • Accor S.A.
  • Sonder Holdings Inc.
  • Wyndham Hotels & Resorts
  • Blueground
  • Taj Hotels
  • Greet Hotels

Sources

Primary Research Interviews

• Regional Operations Director – Leading Serviced Apartment Operator
• Chief Revenue Officer – Global Extended Stay Brand
• Business Development Head – International Real Estate Developer
• Procurement Manager – Major Corporate Housing Provider

Stakeholders

• Operators and Management Companies
• Real Estate Developers and Investors
• End-use Sectors:
• Corporate Travel & Relocation Management Firms
• Tourism & Leisure Operators
• Healthcare & Medical Tourism Facilitators
• Property Management System Providers
• Online Booking Platforms and OTAs

Databases

• Real Capital Analytics – Global Investment Data
• UNWTO Tourism Statistics Database

Magazines

• Serviced Apartment News – Trends and Developments in Extended Stay
•  Business Traveler – Insights on Corporate Accommodation
•  Hotel Management Magazine – Serviced Apartments and Mixed-Use Developments
•  Hospitality Net – Global Market Insights and Operator Strategies
•  Global Lodging Forum – Industry Updates

Journals

• International Journal of Hospitality Management – Extended Stay Research and Consumer Behavior
• Journal of Tourism Management – Corporate and Leisure Demand Patterns
• Journal of Property Investment & Finance – Serviced Apartment Investment Models

Newspapers

• The Financial Times – Investment and M&A in Hospitality Assets
• The Wall Street Journal – Corporate Housing and Travel Policy Shifts
• The Guardian – Urban Development and Regulatory Trends
• South China Morning Post – Asia Pacific Expansion and Operator Strategies
• The New York Times – Lifestyle Shifts Driving Extended Stay Demand

Associations

• Global Serviced Apartment Industry Report (GSAIR) – The Apartment Service
• Urban Land Institute (ULI)
• European Serviced Apartment Providers Association (ESAPA)
• International Society of Hospitality Consultants (ISHC)
• American Hotel & Lodging Association (AHLA)

Public Domain Sources

• World Tourism Organization (UNWTO) – Tourism Arrivals and Stays
• OECD – International Mobility and Housing Studies
• European Commission – Short-term Accommodation Regulatory Frameworks
• U.S. Department of Commerce – Lodging and Travel Services Data

Proprietary Elements

• CMI Data Analytics Tool, Proprietary CMI Existing Repository of information for last 8 years.