Serviced Apartment Market Size & Outlook, 2026-2034

Serviced Apartment Market Overview

The global serviced apartment market size was valued at USD 139.74 billion in 2025 and is estimated to reach USD 379.69 billion by 2034, growing at a CAGR of 11.85% during the forecast period (2026–2034). Key market drivers include the rising demand for flexible, long-term accommodations among business travelers and digital nomads, growth in corporate travel, increasing urbanization, preference for home-like amenities, and expansion of the luxury and midscale segments.

Key Market Trends & Insights

• North America held the largest market share, over 35% of the global market.
• Asia-Pacific is the fastest-growing region with a CAGR of 12.75%
• By Type, the long-term (>30 nights) segment is expected to witness the fastest CAGR of 13.76%.
• By End-Use, the corporate/business traveler segment held the highest market share of over 50%.
• By Booking Mode, the corporate contracts segment is expected to witness the fastest CAGR of 13.54%.
• The U.S. serviced apartment market was valued at USD 42.09 billion in 2024 and reached USD 47.50 billion in 2025.

Graph: The US Market Revenue Forecast (2023 – 2034)

Source: Straits Research

Market Size & Forecast

• 2025 Market Size: USD 74 billion
• 2034 Projected Market Size: USD 379.69 billion
• CAGR (2026-2034): 85%
• North America: Largest market in 2025
• Asia-Pacific: Fastest Growing Region

Serviced apartments are fully furnished, self-contained units offering hotel-like amenities such as housekeeping, Wi-Fi, and concierge services, catering to both short- and long-term stays. They are ideal for business travelers, expatriates, and tourists seeking flexible, home-like accommodation. Applications extend to corporate housing, relocation services, extended stays, and temporary housing for medical or educational purposes. These apartments combine the comfort and privacy of a residence with the convenience of hotel services, making them a popular choice in urban and high-demand areas.

The serviced apartment market is driven by the rising demand for flexible and cost-effective lodging solutions, especially among millennials and remote workers. Increasing urbanization and rising disposable incomes are expanding the market in key regions. Opportunities exist in developing eco-friendly and sustainable serviced apartments, integrating smart technologies for seamless guest experiences, and tapping into emerging markets in the Asia-Pacific and the Middle East. Moreover, luxury and premium segments are witnessing strong growth due to evolving lifestyle preferences.

Latest Market Trends

Growing Popularity of Fully Furnished Turnkey Apartments with Home-like Amenities

The demand for fully furnished apartments is rising as travelers increasingly seek accommodations that combine comfort with convenience. These apartments offer ready-to-move-in solutions, complete with furniture, appliances, and essential utilities, eliminating the hassle of setting up temporary living spaces and providing a seamless stay experience.

In addition to practical benefits, home-like amenities such as spacious living areas, modern décor, and personalized services enhance the overall guest experience. This trend caters to both business and leisure travelers who value privacy, flexibility, and a sense of “living at home” while away, making turnkey apartments a preferred alternative to traditional hotels.

Collaborations with Corporate Clients for Long-term Stays

The global serviced apartment market is witnessing a strong trend of collaborations with corporate clients to provide long-term stay solutions. Businesses increasingly prefer serviced apartments for relocating employees, extended project assignments, and business travel, as they offer flexibility, cost efficiency, and a homely environment compared to traditional hotels.

As per Straits Research, these partnerships are enabling operators to secure consistent occupancy and enhance revenue streams. By tailoring services to meet corporate needs, such as flexible lease terms, furnished accommodations, and added amenities, serviced apartments are positioning themselves as a preferred choice for business travelers seeking comfort, convenience, and a productive living-work environment.

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Market Drivers

Increasing International Tourism and Expatriate Workforce

The market is being driven by the steady rise in international tourism and the expanding expatriate workforce. Travelers and professionals increasingly prefer serviced apartments for their flexibility, comfort, and cost-effectiveness compared to hotels, especially during extended stays. These provide a balance of home-like living with hotel-style amenities, making them ideal for long-term business assignments, relocations, or international projects.

• For instance, according to the latest World Tourism Barometer by UN Tourism, international tourism experienced a 5% increase in the first half of 2025 compared to the same period in 2024, with 690 million arrivals recorded globally. Africa led this surge with 12% growth, while Europe welcomed nearly 340 million tourists, surpassing pre-pandemic levels.

This rebound in global travel, combined with a growing expatriate workforce, is strengthening demand for serviced apartments, positioning them as a preferred solution.

Market Restraints

Competition From Hotels and Short-term Rental Platforms

Hotels continue to attract travelers with loyalty programs, consistent services, and established brand recognition, while platforms like Airbnb and Vrbo offer flexible, often more affordable alternatives for short-term stays. This competition limits pricing power and occupancy rates for serviced apartment operators. Moreover, travelers increasingly weigh convenience, location, and cost-effectiveness, challenging serviced apartments to differentiate their offerings and maintain market share amid the expanding landscape of accommodation options.

Market Opportunities

Adoption of AI and Smart Solutions for Personalized Experiences

The growing integration of AI and smart technologies is opening new opportunities for the serviced apartment sector, enabling operators to enhance personalization, improve operational efficiency, and deliver seamless guest experiences. From AI-driven concierge services to smart room automation, these innovations are redefining how serviced apartments cater to evolving customer expectations.

• In September 2025, Frasers Hospitality, a serviced-apartment and hotel residence operator across nearly 40 cities, adopted AI to streamline and scale workforce training. Partnering with Google Cloud’s AI Cloud Takeoff (AI CTO) program and Kyndryl, the company developed an AI agent app that analyzes training videos to generate SOP documents and BPMN flowcharts for improved efficiency.

Such advancements highlight the potential of smart solutions not only for guest-facing experiences but also for optimizing back-end operations, strengthening competitiveness in the hospitality industry.

Regional Analysis

North America is dominating the global serviced apartment market with a market share of over 35%, supported by a mature hospitality ecosystem, high corporate travel, and growing demand from expatriates and long-term business visitors. Urbanization, premium lifestyle preferences, and strong infrastructure make serviced apartments a preferred accommodation choice. Moreover, major operators are expanding portfolios with fully furnished apartments and integrating smart technologies to enhance guest experiences. The combination of consistent demand, strategic partnerships, and modern amenities solidifies North America’s leading position in the global serviced apartment market.

The United States market is shaped by leading operators such as Oakwood, Sonder, and AKA, who have pioneered upscale serviced living for professionals and tech sector relocations. The strong focus on flexible leases, digital guest services, and urban expansion allows local players to attract both domestic and international travelers. Rapid growth in technology hubs and financial centers, combined with increasing mobility for project-based consulting roles, drives further innovation and market expansion.

Asia-Pacific Market Insights

Asia-Pacific is the fastest-growing region with a CAGR of 12.75%, fueled by rapid urbanization, a rising middle-class population, and expanding international business hubs. Operators are strategically entering major cities, offering fully furnished apartments with digital check-in systems, smart amenities, and flexible leasing options to cater to business travelers, expatriates, and long-term residents. Moreover, investments in infrastructure, government initiatives supporting tourism, and collaborations with multinational corporations drive market expansion. The Asia-Pacific region’s dynamic economy and evolving real estate sector make it a hotspot for serviced apartment growth and innovation.

China’s market is defined by major players like Ascott Limited, Fraser Residence, and Shama, who leverage joint ventures and property partnerships. The sector benefits from local business travel surges, government-supported urbanization policies, and strong ties to international and domestic relocation agencies. Moreover, innovative leasing models and frequent expansion into key metropolitan hubs ensure sustained momentum in China’s serviced apartment offering.

Regional Market Share, 2025

Source: Straits Research

Europe Market Insights

Europe’s serviced apartment market is experiencing steady growth, driven by strong corporate travel, tourism, and urbanization. Leading operators, including international hospitality chains, are expanding in cities like London, Paris, and Berlin, offering fully furnished apartments with smart amenities, sustainable practices, and flexible leasing options. Partnerships with real estate developers and multinational corporations enhance occupancy and service quality. Rising demand from long-term business travelers, expatriates, and digital nomads further strengthens the market, making Europe a mature yet evolving region.

Latin America Market Insights

Latin America’s serviced apartment market is gradually expanding, supported by growing urban migration, international business activities, and tourism. Operators, including local and regional hospitality chains, are focusing on major cities such as São Paulo, Mexico City, and Buenos Aires, providing fully furnished apartments with digital check-ins, security enhancements, and concierge services. Moreover, government initiatives promoting urban infrastructure and business-friendly policies, along with rising demand for long-term corporate housing, are key factors shaping market growth in the region.

Middle East and Africa Market Insights

The Middle East and Africa serviced apartment market is growing rapidly, fueled by business travel, luxury tourism, and foreign investment. Companies are expanding portfolios in cities like Dubai, Riyadh, and Johannesburg, offering high-end, fully serviced apartments with smart technology, premium amenities, and tailored concierge services. Moreover, urbanization, economic diversification, and government initiatives promoting tourism and foreign investment further support growth, positioning the region as a high-potential market for upscale and flexible serviced apartment solutions.

Type Insights

The long-term (>30 Nights) segment is the fastest-growing segment, expanding at a CAGR of 13.72%. Driven by expatriates, remote workers, and long-stay business assignments, this segment is gaining traction in metropolitan and high-demand regions. Its increasing adoption reflects shifting preferences toward comfortable, home-like accommodations with extended amenities, steadily increasing market share worldwide.

End-Use Insights

The corporate and business travelers segment accounts for over 45% of serviced apartment demand, making it the dominant end-use segment. These clients value fully furnished, flexible accommodation options that support work and lifestyle needs. Major cities with high corporate activity see consistently high occupancy in this segment, reinforcing its significance in driving revenue and long-term growth in the global serviced apartment market.

Segmentation by End-Use in 2025 (%) 

Source: Straits Research

Booking Mode Insights

The corporate contracts segment is the fastest-growing booking mode, expanding at a CAGR of 13.54%. Organizations increasingly partner with serviced apartment providers for employee travel and relocation needs, particularly in high-demand metropolitan areas. This segment is boosting occupancy levels and enhancing predictable revenue streams, reflecting its growing strategic importance for operators targeting business-focused growth worldwide.

Company Market Share

Companies in the serviced apartment and hospitality segments are increasingly focused on diversifying service offerings and enhancing guest experiences to capture greater market share. Many are investing in smart-home technologies—such as app-based controls for lighting, temperature, and entertainment—to appeal to tech-savvy travelers. Others are expanding into flexible-stay models, offering subscription-style or co-living arrangements to meet rising demand for long-term and remote-work accommodations.

The Ascott Limited

The Ascott Limited, established in August 1984 in Singapore, is a global serviced residence operator. It was founded by Scotts Holdings, with its first property, The Ascott Singapore, marking Asia Pacific's first international-class serviced residence. In 1999, Scotts Holdings merged with Stamford Group to form The Ascott Limited, consolidating their portfolios. The company became a wholly owned subsidiary of CapitaLand Limited in 2008 and is now part of CapitaLand Investment following a strategic restructuring in 2021.

• In September 2025, The Ascott Limited achieved a significant milestone as its Citadines brand surpassed 200 properties globally. This expansion underscores Ascott’s strategic focus on asset-light growth through management and franchise agreements.

List of key players in Serviced Apartment Market

1. The Ascott Limited
2. Frasers Hospitality
3. The Serviced Apartment Company
4. Staycity Ltd
5. Habicus Group
6. THE SQUA.RE SERVICED APARTMENTS
7. Viridian Apartments
8. Adagio
9. Marriott International, Inc.

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Strategic Initiatives

• October 2025: NUMA Group, a Berlin-based digital hospitality platform, has acquired Native Places, a UK-based lifestyle aparthotel and serviced apartment brand, from Native Holdings. This acquisition adds over 800 units to NUMA's portfolio, bringing its total to over 7,300 units across Europe.
• July 2025: Central Park, a prominent real estate developer, announced a ₹550 crore investment to develop a serviced apartment project named Selene in Sohna, near Gurgaon. This project will be situated within the Central Park Flower Valley township, covering an area of 3.818 acres.
• July 2025: ActivumSG, a European real estate investment manager, has acquired a majority stake in Centralis, a German serviced apartment platform. The deal includes nine assets totaling 550 keys across Berlin, Bonn, Lübeck, Hamburg, Düsseldorf, Cologne, and Nuremberg. ActivumSG aims to scale the platform into a €500 million+ portfolio by the end of 2025.