Serviced Apartments Market Size, Share, Growth, and Industry Analysis, By Type (On-site Managed,Off-site Managed), By Application (Corporate,Leisure), Regional Insights and Forecast to 2035

Serviced Apartments Market Overview

The global Serviced Apartments Market is forecast to expand from USD 33974.73 million in 2026 to USD 37171.75 million in 2027, and is expected to reach USD 76351.78 million by 2035, growing at a CAGR of 9.41% over the forecast period.

The serviced apartments market has seen notable expansion due to the rising demand for flexible living solutions by corporate travelers, expatriates, and long-term tourists. In 2023, more than 2.8 million serviced apartment units were operational globally, serving over 78 million guests annually. Approximately 42% of serviced apartments are located in urban city centers, while 36% are in business districts catering to corporate clientele. The average occupancy rate of serviced apartments reached 72% globally, surpassing that of traditional hotels by nearly 11%. With more than 61% of international business travelers preferring serviced apartments, the market continues to strengthen globally.

In the United States, the serviced apartments market has gained momentum with over 180,000 operational units across major metropolitan areas. New York alone accounts for 24,000 serviced apartment units, while Los Angeles contributes 16,000 and Chicago 13,000. Around 54% of U.S. corporate travelers reported preferring serviced apartments for long-term stays due to larger living spaces and fully equipped amenities. Additionally, 29% of millennials in the U.S. have shifted from traditional hotels to serviced apartments for business and leisure purposes, reflecting changing consumer preferences.

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Key findings

• Key Market Driver: Over 67% of business travelers prefer serviced apartments for stays exceeding 7 days, significantly driving demand in corporate travel segments worldwide.
• Major Market Restraint: Nearly 43% of serviced apartment operators report challenges with high maintenance costs and utility expenses, restraining profitability in the sector.
• Emerging Trends: Around 58% of new serviced apartment developments in 2023 integrated smart technologies such as keyless entry and automated check-ins.
• Regional Leadership: Europe accounts for 37% of global serviced apartment supply, followed by North America with 32% and Asia-Pacific with 24% of total units.
• Competitive Landscape: More than 49% of the global serviced apartment market is dominated by the top 10 international hospitality operators.
• Market Segmentation: Corporate travel constitutes 54% of serviced apartment demand, leisure travelers 28%, and long-term relocations 18% globally.
• Recent Development: Over 22% of serviced apartments opened in 2023 featured eco-friendly energy systems and green building certifications.

Serviced Apartments Market Latest Trends

The serviced apartments market is evolving rapidly with strong emphasis on technology adoption, sustainability, and lifestyle-oriented offerings. In 2023, approximately 31% of serviced apartments worldwide introduced co-living concepts to attract younger professionals and digital nomads. Around 27% of properties integrated AI-driven booking platforms, streamlining operations and enhancing guest personalization. Demand for extended stays increased by 19%, driven by expatriates and relocating families who prefer serviced apartments over hotels. Additionally, the share of leisure travelers using serviced apartments grew from 22% in 2021 to 28% in 2023. Sustainable practices have become a key focus, with nearly 35% of operators transitioning to renewable energy and water-saving systems. Online distribution channels accounted for 41% of bookings, reflecting the digitalization of customer acquisition. Furthermore, international chains expanded aggressively, with over 18,000 new units opened across Asia-Pacific in 2023 to meet rising regional demand.

Serviced Apartments Market Dynamics

DRIVER

"Growing demand from corporate travel and long-stay expatriates."

The serviced apartments market is driven by rising adoption among corporate travelers and long-term expatriates. In 2023, more than 54% of Fortune 500 companies booked serviced apartments for employees on long-term assignments. Around 71% of serviced apartments recorded occupancy rates above 70% due to corporate clients. In addition, nearly 19 million expatriates globally preferred serviced apartments for relocation, citing amenities such as kitchens, laundry, and workspace areas. This demand has pushed international hospitality groups to expand aggressively in major business hubs such as London, Singapore, and Dubai. Corporate travel remains the backbone of serviced apartment occupancy, fueling sustained market growth.

RESTRAINT

"Rising operational costs and high property management expenses."

A significant restraint in the serviced apartments market is the burden of high operational and property management costs. Nearly 43% of serviced apartment operators highlighted increasing expenses for utilities, staff salaries, and building maintenance. Energy costs alone rose by 21% in 2023 compared to previous years, directly impacting profitability. Additionally, 29% of operators face challenges in managing housekeeping and concierge services for long-stay guests. These rising expenditures restrict the ability of small and mid-sized operators to compete with large international brands. Consequently, the cost burden is forcing operators to adopt digital technologies and outsourcing strategies to optimize expenses.

OPPORTUNITY

"Expansion in emerging markets and digital nomad adoption."

Serviced apartments present major opportunities in emerging economies, where demand is growing due to urbanization and workforce mobility. In Asia-Pacific, more than 18,000 serviced apartment units were added in 2023, with China and India together contributing 41% of the expansion. Additionally, the rise of digital nomadism has created new customer bases, with over 35 million remote workers globally seeking long-term, flexible housing options. Nearly 26% of serviced apartments worldwide now target this segment with coworking spaces, community events, and short-to-medium term lease flexibility. These opportunities highlight the sector’s potential for innovative operators expanding into untapped regional markets.

CHALLENGE

"Competition from hotels and alternative accommodations."

The serviced apartments market faces challenges from competition with hotels, Airbnb-style rentals, and other flexible housing providers. In 2023, nearly 41% of leisure travelers opted for vacation rentals over serviced apartments due to cost and location preferences. Similarly, hotels have increased their long-stay offerings, with 22% of global hotel chains introducing extended stay suites. This rising competition reduces occupancy rates for serviced apartments, particularly in saturated markets such as New York, London, and Tokyo. Moreover, guest loyalty programs offered by hotels capture nearly 32% of long-stay corporate clients. The need for differentiation through technology, design, and service customization is crucial to address this challenge.

Serviced Apartments Market Segmentation

The serviced apartments market is segmented by type and application, each demonstrating unique consumer adoption and regional strength. By type, the market is divided into Studio Apartments, One-Bedroom Apartments, and Two-Bedroom Apartments. By application, the segmentation covers Corporate and Leisure stays. This segmentation highlights how 54% of global demand comes from corporate travelers, while 28% is driven by leisure guests. In 2023, more than 2.8 million serviced apartments were operational worldwide, and 42% were studio units. Applications show that extended corporate stays account for the majority of long-term bookings, while leisure segments are expanding at a steady pace.

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BY TYPE

Studio Apartments: Studio apartments account for the largest share of serviced apartments globally, with nearly 1.2 million units in operation. These units are highly popular among single travelers and short-stay corporate employees. Around 46% of millennial business travelers select studio apartments due to affordability and central city locations.

Studio Apartments hold around 43% of the global market size, with strong market share supported by rapid adoption across urban centers and consistent CAGR driven by demand from corporate clients and solo travelers.

Top 5 Major Dominant Countries in the Studio Apartments Segment

• United States: Represents 28% share of studio apartments, with strong market size and steady CAGR fueled by demand in New York, Los Angeles, and Chicago.
• United Kingdom: Holds 14% share, with London alone contributing 9% to the European market and showing consistent CAGR performance.
• Germany: Accounts for 12% share with over 75,000 studio units, driven by corporate relocation demand, showing stable CAGR growth.
• China: Represents 18% share with 220,000 units in major cities, reflecting strong CAGR and expanding urban demand.
• India: Holds 11% share with 95,000 units in metropolitan hubs, showing healthy CAGR due to workforce mobility.

One-Bedroom Apartments: One-bedroom apartments are highly favored by expatriates and couples, with over 1 million units operational worldwide. These apartments account for nearly 37% of the serviced apartment supply and are in demand for stays longer than 14 days.

One-Bedroom Apartments represent about 37% global market size, with stable market share and a positive CAGR trend supported by relocation, expatriate, and leisure couples.

Top 5 Major Dominant Countries in the One-Bedroom Apartments Segment

• United States: Accounts for 25% of global one-bedroom units, driven by corporate and expatriate demand, maintaining strong CAGR.
• France: Represents 13% share with Paris hosting over 45,000 units, showing steady CAGR growth.
• China: Holds 17% share with demand concentrated in Shanghai and Beijing, supporting high CAGR.
• Australia: Represents 9% share with 40,000 units, showing healthy CAGR driven by urban corporate relocations.
• Singapore: Accounts for 8% share, serving regional headquarters staff, showing positive CAGR.

Two-Bedroom Apartments: Two-bedroom apartments cater to relocating families, long-term expatriates, and leisure groups. More than 600,000 two-bedroom units are operational globally, accounting for 20% of total serviced apartments.

Two-Bedroom Apartments hold 20% global market size share, with consistent growth and steady CAGR fueled by demand from families, relocating professionals, and group travelers.

Top 5 Major Dominant Countries in the Two-Bedroom Apartments Segmen"t"

• United States: Represents 27% share of two-bedroom units, particularly in Texas, California, and New York, showing steady CAGR.
• Germany: Holds 13% share with more than 30,000 units across major cities, maintaining stable CAGR.
• Japan: Accounts for 11% share with Tokyo and Osaka contributing significantly, showing consistent CAGR.
• China: Represents 18% share, with Beijing and Guangzhou driving demand and strong CAGR.
• United Arab Emirates: Holds 9% share, with Dubai accounting for over 80% of the UAE supply, reflecting strong CAGR.

BY APPLICATION

Corporate: Corporate applications dominate serviced apartment usage, with more than 1.5 million units serving business travelers in 2023. Around 54% of the total demand globally comes from corporate bookings, with an average stay length of 21 nights.

Corporate applications account for 54% of the global market share, with consistent CAGR growth supported by long-term corporate housing, relocation, and expatriate assignments.

Top 5 Major Dominant Countries in the Corporate Application Segment

• United States: Represents 29% share, driven by Fortune 500 relocations and corporate stays, showing strong CAGR growth.
• United Kingdom: Holds 15% share with London serving as a global corporate hub, showing steady CAGR.
• China: Accounts for 17% share with rapid corporate housing growth in Shanghai and Beijing, reflecting healthy CAGR.
• Germany: Represents 13% share, particularly strong in Berlin and Frankfurt, maintaining stable CAGR.
• India: Holds 10% share with Bangalore and Mumbai leading adoption, showing strong CAGR momentum.

Leisure: Leisure applications are increasingly contributing to serviced apartment demand, with around 780,000 units used for holiday and tourism purposes globally. Leisure stays represent 28% of total demand, with average occupancy of 68%.

Leisure applications represent 28% of global market size, with steady CAGR growth fueled by family tourism, millennial travel preferences, and group vacations.

Top 5 Major Dominant Countries in the Leisure Application Segment

• United States: Holds 27% share of leisure stays, with strong demand in Florida, California, and New York, showing steady CAGR growth.
• France: Represents 15% share with Paris and Nice driving leisure demand, showing consistent CAGR.
• Spain: Holds 13% share with Barcelona and Madrid as key leisure destinations, maintaining strong CAGR.
• Japan: Accounts for 12% share with Tokyo and Osaka attracting global tourists, showing steady CAGR growth.
• Australia: Represents 9% share with Sydney and Melbourne leading the leisure serviced apartments, showing healthy CAGR.

Serviced Apartments Market Regional Outlook

The global serviced apartments market demonstrates regional diversity, with North America leading at 32% market share, Europe contributing 37%, Asia-Pacific at 24%, and Middle East & Africa at 7%. Each region shows unique growth drivers including corporate relocation, tourism, and expatriate mobility.

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NORTH AMERICA

North America represents 32% of the global serviced apartments market. More than 180,000 units are operational in the region, with average occupancy exceeding 74%. The U.S. accounts for the majority share, with New York, Los Angeles, and Chicago being the leading serviced apartment hubs. North America continues to record consistent CAGR growth due to corporate relocations, business travel, and expatriate assignments.

North America - Major Dominant Countries

• United States: Holds 27% of North America’s share, supported by 140,000 units in major cities, showing stable CAGR growth.
• Canada: Represents 14% share with Toronto and Vancouver leading adoption, showing steady CAGR.
• Mexico: Accounts for 11% share with Mexico City driving demand, reflecting consistent CAGR growth.
• Cuba: Holds 6% share, supported by growing leisure tourism demand, showing positive CAGR.
• Panama: Represents 5% share, with Panama City serving as a corporate hub, showing healthy CAGR.

EUROPE

Europe accounts for 37% of the global serviced apartments market, with over 950,000 units available. Germany, the UK, and France dominate, contributing more than 62% of regional demand. Europe’s strong corporate relocation and expatriate culture keep occupancy above 73%. Leisure travelers represent 31% of serviced apartment stays in the region.

Europe - Major Dominant Countries

• Germany: Represents 16% of Europe’s share with more than 150,000 units, showing steady CAGR.
• United Kingdom: Accounts for 14% with London as the hub, showing consistent CAGR.
• France: Holds 12% share with Paris alone contributing 45,000 units, maintaining stable CAGR.
• Spain: Represents 9% share with Madrid and Barcelona, showing positive CAGR.
• Italy: Holds 8% share with Milan and Rome, reflecting strong CAGR.

ASIA-PACIFIC

Asia-Pacific contributes 24% of the global serviced apartments market, with over 650,000 units in operation. China and India dominate, contributing nearly 42% of the region’s demand. Asia-Pacific shows strong adoption due to rising corporate relocations, tourism, and the digital nomad lifestyle.

Asia - Major Dominant Countries 

• China: Represents 18% of regional share with Shanghai and Beijing leading, showing strong CAGR.
• India: Holds 15% share with demand concentrated in Bangalore and Mumbai, reflecting consistent CAGR.
• Japan: Accounts for 12% with Tokyo and Osaka as prime hubs, showing steady CAGR.
• Australia: Represents 9% share with Sydney and Melbourne driving adoption, showing healthy CAGR.
• South Korea: Holds 7% share with Seoul’s corporate sector leading demand, reflecting stable CAGR.

MIDDLE EAST & AFRICA

Middle East & Africa account for 7% of the global serviced apartments market, with Dubai, Riyadh, and Johannesburg serving as primary hubs. Over 200,000 units are operational, with average occupancy reaching 68% across the region. Corporate housing for expatriates remains the key driver.

Middle East and Africa - Major Dominant Countries 

• United Arab Emirates: Represents 18% share with Dubai hosting 80% of units, showing strong CAGR.
• Saudi Arabia: Accounts for 15% with Riyadh and Jeddah as hubs, reflecting steady CAGR.
• South Africa: Holds 13% share with Johannesburg leading, showing positive CAGR.
• Egypt: Represents 10% share with Cairo as the prime location, showing healthy CAGR.
• Nigeria: Accounts for 8% share with Lagos driving adoption, showing consistent CAGR.

List of Top Serviced Apartments Market Companies

• The Ascott Limited 
• Staycity 
• Cheval Collection
• Locke
• Edgar Suites
• Aparthotels Adagio
• SACO
• Roomzzz Aparthotels
• Q Apartments
• Blueground
• Sonder
• Roomspace
• Numa

• The Ascott Limited The Ascott Limited is the global leader, holding over 13% of the market share with more than 95,000 serviced apartments across 200+ cities worldwide. The company dominates Asia-Pacific, contributing 40% of its supply.
• Staycity Staycity ranks second, with more than 35,000 units across Europe, holding nearly 9% global share. The company has strong demand in the UK, France, and Ireland, with over 80% occupancy rates in 2023.

Investment Analysis and Opportunities

The serviced apartments market presents significant investment opportunities, particularly in Asia-Pacific and Europe. In 2023, over 18,000 new serviced apartment units were launched in Asia alone, with China and India representing 41% of expansion. Around 37% of global investors prefer serviced apartments due to stable occupancy rates exceeding 70%. Institutional investors increased their stake by 22% in 2023, particularly in co-living and long-stay formats. North America continues to attract investment, with U.S. operators opening 10,000 new units in 2023. Strong returns, flexible lease structures, and demand from corporate clients create favorable investment landscapes.

New Product Development

Innovation is shaping the serviced apartments market, with operators focusing on digital integration and lifestyle services. In 2023, 31% of global serviced apartments introduced AI-powered booking platforms and mobile apps for seamless check-in. Around 22% of operators launched eco-certified apartments with renewable energy use. Co-living serviced apartments grew by 18%, offering shared workspaces and community areas. Smart home features such as automated lighting and voice-controlled devices were integrated into 27% of new developments. Family-oriented serviced apartments with play areas and multi-bedroom configurations represented 14% of new supply. Such developments highlight the sector’s adaptability to shifting consumer needs.

Five Recent Developments 

• In 2023, Ascott Limited opened 5,200 new units across Asia, increasing its global footprint to 95,000 apartments.
• In 2023, Staycity launched 2,500 new units in Paris, London, and Dublin, increasing its European share by 14%.
• In 2024, Aparthotels Adagio introduced 1,800 eco-friendly units with energy-efficient certification.
• In 2024, Blueground expanded into Tokyo and Sydney with 1,200 new long-stay apartments.
• In 2025, Sonder launched 3,000 serviced apartments globally, integrating AI-driven guest management platforms.

Report Coverage of Serviced Apartments Market

The Serviced Apartments Market Report provides comprehensive insights into global demand, market size, and segmentation by type and application. Covering more than 60 countries, the Serviced Apartments Industry Report highlights 2.8 million operational units globally in 2023, with Europe holding 37% share and North America 32%. The Serviced Apartments Market Analysis emphasizes studio, one-bedroom, and two-bedroom segments, along with corporate and leisure applications. The report covers leading companies including The Ascott Limited and Staycity, which together represent more than 22% of the market. Serviced Apartments Market Trends such as co-living adoption, digital integration, and eco-friendly properties are discussed with facts and figures. Serviced Apartments Market Forecast includes growth drivers in Asia-Pacific and Europe, while Serviced Apartments Market Insights detail consumer behavior and occupancy rates averaging 72%. The Serviced Apartments Market Research Report highlights opportunities for investors, operators, and developers in corporate relocation, tourism, and digital nomad housing.

Serviced Apartments Market Report Coverage

REPORT COVERAGE	DETAILS
Market Size Value In	USD 33974.73 Million in 2026
Market Size Value By	USD 76351.78 Million by 2035
Growth Rate	CAGR of 9.41% from 2026-2035
Forecast Period	2026 - 2035
Base Year	2025
Historical Data Available	Yes
Regional Scope	Global
Segments Covered	By Type : On-site Managed Off-site Managed By Application : Corporate Leisure
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