European Serviced Apartment Market Size Likely to Grow at a CAGR of 13.15% By 2034

Market Size and Growth

As per the European Serviced Apartment Market size analysis conducted by the CMI team, the European 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

As per the industry experts at CMI, the European serviced apartment market is likely to witness a stellar CAGR during the forecast period. This could be attributed to robust demand from both – leisure and corporate travelers, particularly for long-term stays. The other factors include growing preference for flexible accommodations and luxury offerings, along with a strategic shift in the direction of refurbishment and conversion over novel development. The operators are expanding via franchising and management agreements while concentrating on bundled service packages and technological integration for addressing the evolving demands for value and convenience.

Key Trends & Drivers

• Rise in Long-term Stays to Determine Growth: Demand for long-term stays (>30 nights) is one of the major revenue-generating as well as the fastest-growing segments. The market is also witnessing strong demand from a rising customer base of leisure and business travelers, thereby resulting in positive occupancy trends and ultimately notable revenue growth. The corporate segment stays positive, supported by a rising expatriate population along with a rising need for nearshoring and project-based work.

• Demand for Flexible Accommodations to Catalyze the Market: Rising preference for modern and flexible accommodations is one of the key trends extending support to expansion of the market. Also, the market is highly competitive with fierce competition amongst online travel agencies, conventional hotels, and alternative accommodation providers like Airbnb. Also, a strong recovering segment of leisure is significantly contributing to improved performance.

Report Scope

SWOT Analysis

• Strengths: A noticeable revenue generated from long-term stays does highlight a robust market preference for the serviced apartments as one of the solutions for extended trips. The serviced apartments in Europe have witnessed occupancy levels that are exceeding expectations. The key European cities do provide exceptional opportunities for the operators to address leisure and business travelers. Personalized services and high-end amenities are in the offing.

• Weaknesses: Operators are facing tough competition from the other service apartment providers, conventional hotels, and the fast-expanding vacation rental market. The above-average rise in the supply of serviced apartments in certain markets does intensify competition and adversely affect the occupancy levels.

• Opportunities: The trend of combining leisure travel and business (Bleisure) does create opportunity for the serviced apartments. Growing demand for wellness retreats, eco-friendly packages, and authentic local experiences does present novel avenues for the providers of service apartments. Expansion of the expatriate community in the European economies directly contributes to demand for accommodation in the long run. The operators can also leverage the online booking platforms and new technologies for attracting a broader customer base.

• Threats: Wider economic downturns could negatively impact leisure as well as business travel, thereby affecting the European serviced apartment market. Evolving regulations and housing policies in diverse European countries could turn out to be challenging to the expansion of the market. Growing popularity of the online travel agencies/platforms offering alternative options like Airbnb does pressurize European serviced apartment market.

List of the prominent players in the European Serviced Apartment Market:

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

The European Serviced Apartment Market is segmented as follows:

By Type

• Long-term [>30 Nights]
• Short-term [<30 Nights]

By Booking Mode

• Direct Booking
• Online Travel Agencies
• Corporate Contracts

By End-use

• Corporate/Business Travelers
• Leisure Travelers
• Expats and Relocators

Regional Coverage:

European

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