Serviced Apartment Market Revenue to Attain USD 373.33 Bn by 2033

14 Nov 2024

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Table of Content

1. Serviced Apartment Market Revenue and Trends 2. Market Overview 3. Report Highlights of the Serviced Apartment Market  4. Serviced Apartment Market Trends 5. Regional Outlook 6. Serviced Apartment Market Coverage 7. Market News

Serviced Apartment Market Revenue and Trends

The global serviced apartments market revenue reached USD 126.88 billion in 2024 and is predicted to attain around USD 373.33 billion by 2033 with a healthy CAGR of 12.74%. The increasing demand for convenient, luxurious, safe, and affordable stays at the travel location for short or longer periods of time due to personal or professional needs drives the growth of the market.

Market Overview

The serviced apartments are living spaces that are fully equipped with all the essential and luxurious amenities and provide the service of a hotel and the privacy of a home. The serviced apartment provides benefits such as the availability of all the amenities, services, safety and security, location, and affordable prices compared to traditional hotel stays. These can be rented as per the customer's preference, such as for days, weeks, or more than that. The rising migration and travel activities in the world boost the serviced apartment market. 

Report Highlights of the Serviced Apartment Market 

• By type, the short-term (<30 nights) segment led the market in 2023. There is an increasing demand for serviced apartents for short stays for people who are traveling for business and want affordable and convenient places for short-term stays. 
• By type, the long-term (>30 nights) segment is predicted to witness the fastest growth in the market over the forecast period. The increasing travel and tourism activities owing to the rising number of travelers and the staycation with family and friends are driving the demand for long-term serviced apartments. 
• By end-use, the corporate/business traveler segment accounted for the largest share of the serviced apartment market in 2023. The rising economic development in the regional countries and the industrial development anticipated a higher demand for corporate and business travel, which accelerated the demand for serviced apartments. 
• By end-use, the expats and relocators segment is expected to the fastest growth in the market during the predicted period. The increasing number of expats and relocators from rural to urban areas for education and employment drives the expansion of the market. 
• By mode of booking, the direct booking segment dominated the serviced apartment market in 2023. Direct booking provides the attractive benefits and offers associated with the serviced apartment rental and affordable pricing that enhance the growth of the segment. 
• By mode of booking, the corporate contracts segment expected significant growth in the market during the predicted period. The corporate contracts have tie-ups with several hospitality agencies and hotels that provide affordable serviced apartments that boost the growth of the segment. 

Serviced Apartment Market Trends

The rising case of migration:

The increase in cases of migration from rural to urban areas of countries for better economic development, education, employment, a better lifestyle, and others are driving the demand for comfortable spaces to stay with affordable prices and hotel comfort and convenience, which drives the demand for serviced apartments.

Rise in travel and tourism:

The rising per capital income in the population and the spending culture on lifestyle drives the rapid advancements in the travel and tourism industry; the rising long staycation with family and friends in the travel location is driving the demand for the serviced apartment for the home-like privacy, convenience, and space with all essential amenities are accelerating the expansion of the market.

Technological advancements:

The technological shift in the travel and hospitality industry in terms of booking, safety and security, personalized recommendation, integration of smart home services in the rooms and apartments, and so on are attracting the customer base and accelerating the expansion of the serviced apartment market.

Corporate travel cases:

Rising corporate or business travel for business requirements is driving the demand for serviced apartments for long or short stays with privacy and hotel-like convenience.

Regional Outlook

North America dominated the serviced apartment market in 2023. The growth of the market is attributed to the rising demand for the hospitality and travel industry due to the rising expenditure on lifestyle and luxury by the people. The increasing shift from rural areas to urban areas for employment and education is driving the demand for serviced apartments for affordable and convenient spaces for living. Additionally, the rising investment in the construction and hospitality industry growth is driving the growth of the serviced apartment market across the region.

Asia Pacific expects the fastest growth in the market during the forecast period. The growth of the market is attributed to the rising population and the rising economic conditions in the regional countries like India, Japan, and China are driving the industrialization, urbanization, and construction activities. The increasing travel and tourism activities in the country are driving the demand for the serviced apartment market in the region.

Serviced Apartment Market Coverage

Market News

• In May 2024, Ampa Chennai, a real estate player in Chennai, a leading hospitality firm and Indian Hotel Company launched the first Taj-branded residences project, Taj Sky View Hotels and Residences, which will be the tallest tower in the city having 23 floors. 
• In September 2024, ONYX Hospitality Group, a leading player in the Thailand’s hotel management industry successfully acclaimed its serviced apartment brand ‘Shama’ with introducing latest campaign that shows its core values. 
• In August 2024, M3M India, a luxury real estate development and OYO Hotels & Homes’ parent company, Oravel Stays, announced the MOU (Memorandum of Understanding) and introduced the largest SUNDAY Hotel in India. 

Market Segmentation

By Type 

• Long-Term (>30 Nights)
• Short-Term (<30 Nights)

By End-use 

• Corporate/Business Traveler
• Leisure Traveler
• Expats And Relocators

By Booking Mode

• Direct Booking
• Online Travel Agencies
• Corporate Contracts

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