Report Predicts Robust Growth in Serviced Apartment Sector

October 9, 2025

The serviced apartment industry is poised for substantial growth over the next five years, according to a new market forecast from leading analysts. The report highlights the sector’s resilience and adaptability, driven by ongoing shifts in business travel behavior, the rise of ‘bleisure’ (business-leisure) travelers, and advances in hospitality technology. As global travel rebounds from the challenges posed over recent years, serviced apartments have rapidly gained favor with both corporate clients and independent travelers seeking comfort, flexibility, and value.

Market Overview: The Rise of Flexible Accommodation

Once considered a niche segment, serviced apartments have matured into a mainstream hospitality option, benefiting significantly from a sharp increase in business travel and corporate mobility. According to data from STR and the Global Serviced Apartment Industry Report (GSAIR) 2025, the global serviced apartment market is expected to see annualized growth rates between 6% and 8% through 2030. The sector’s value, estimated at USD 16 billion in 2024, is projected to exceed USD 23 billion by the decade’s close.

This impressive expansion is fueled by several key factors:

• Corporate Demand: Corporations are increasingly choosing serviced apartments for staff on extended assignments or project work, citing cost savings, flexibility, and better employee well-being.
• Traveler Preferences: A recent survey by the Association of Serviced Apartment Providers (ASAP) found that over 55% of business travelers prefer apartments over traditional hotels for stays longer than five nights.
• Bleisure and Digital Nomads: The blending of business and leisure travel has created a new wave of demand, with remote work policies enabling longer, more flexible stays.

Technology Transformation: Driving Convenience and Growth

Technology sits at the heart of the serviced apartment boom. Property operators have rapidly adopted digital solutions to enhance guest experience, streamline operations, and appeal to a younger generation of travelers. Key trends include:

• Contactless Check-In/Out: Touchless processes, supported by mobile apps and smart locks, enable hassle-free arrivals and departures.
• Integrated Booking Platforms: Online booking tools now aggregate thousands of properties globally, simplifying sourcing for corporate travel managers.
• Customizable Guest Services: In-unit smart devices, fast Wi-Fi, and on-demand concierge support are now standard, mirroring the expectations set by major hotel chains and home-sharing platforms.

In an industry traditionally slow to innovate, serviced apartment providers are vying to differentiate themselves via technology partnerships, improved sustainability practices, and robust health and safety protocols.

The Corporate Perspective: Strategic Accommodation Management

Corporations are re-evaluating their lodging strategies, moving toward more dynamic solutions that prioritize value and employee well-being. Nearly 68% of global Fortune 500 companies now include serviced apartments in their travel programs, with procurement teams citing the following advantages:

• Cost-Efficiency: Extended-stay rates can be 20-30% lower than equivalent hotel stays over four weeks.
• Employee Satisfaction: Amenities such as kitchen facilities, laundry, and living space improve productivity and morale for long-term assignees.
• Risk Management: Operators increasingly offer 24/7 support, secure access, and comprehensive duty-of-care solutions.

Commenting on the trend, Jane Prior, Head of Global Mobility at a leading financial services firm, noted: “Our employees crave comfort and autonomy on assignment. Serviced apartments strike the right balance between safety, convenience, and a home-like environment, making them our preferred option for stays exceeding one week.”

Challenges and Future Outlook

While demand is robust, the sector faces ongoing challenges around supply consistency, regulatory frameworks, and sustainable development. Key metropolitan markets—London, New York, Singapore, and Sydney—remain supply-constrained due to high real estate costs and planning restrictions. As a result, operators are expanding portfolios in secondary cities and suburban areas, aligning with the decentralization of corporate offices and meetings.

Sustainability continues to be a major focus. A 2025 joint report by ASAP and the Global Business Travel Association (GBTA) reveals that nearly 72% of corporate buyers now consider sustainability scores in accommodation selection. Providers are responding with green certifications, energy-efficient buildings, and eco-friendly guest amenities.

Emerging Trends: What Lies Ahead?

• Hybrid Living Spaces: The convergence of residential, workspace, and hotel amenities is creating new “aparthotel” concepts, with flexible leases and shared work areas.
• Loyalty and Partnerships: Global operators are launching loyalty programs and strategic alliances, integrating with major travel management companies and tech platforms.
• Personalization: Enhanced data analytics enable customized recommendations and integrated duty-of-care alerts, further simplifying travel management.

Conclusion: Serviced Apartments at the Forefront of Business Travel

The serviced apartment sector looks set to play a leading role in the future of global business travel, bridging the gaps between comfort, flexibility, and cost management. As companies prioritize staff well-being and return on investment in travel spend, serviced apartments are emerging as an indispensable tool in the accommodation toolkit. With continued investment in innovation and a focus on guest-centric solutions, the sector’s outlook is brighter than ever.

For procurement professionals, travel managers, and business travelers alike, serviced apartments offer a compelling combination of value, safety, and experience—the hallmarks of tomorrow’s corporate travel landscape.