Shifting workforce patterns and AI adoption reshape extended-stay accommodation
Oct 13, 2025
The global serviced apartment market is on track to double in size over the next decade, driven by corporate relocation programs, flexible work models, and rising investor interest. A new report predicts that digital innovation and sustainability pressures will redefine how the sector serves business travelers and long-stay guests.
Key takeaways
- Strong corporate growth: The serviced apartment sector is projected to reach £183.6 billion globally by 2030, with the UK market doubling to £6.52 billion by 2033.
- Corporate relocation demand: Growth is being fuelled by companies seeking flexible, short-term housing options with residential-style amenities.
- Rising investor confidence: The share of investors targeting serviced apartments increased from 24% in 2024 to 27% in 2025, according to Savills.
- Convergence with co-living: Blurred lines between serviced apartments and co-living models are driving new developments across UK cities.
- Digital-first experiences: Gen Z travellers are shaping demand for tech-enabled stays, with smart room integrations and mobile apps becoming standard.
- AI and automation: Brands are investing in generative AI to personalise and streamline guest experiences.
- Evolving regulations: Sustainability, traveller safety, and risk management are gaining prominence amid geopolitical uncertainty.
- Flexibility as a success factor: Operators must invest in technology, data, and reporting systems to adapt to a rapidly changing regulatory and economic environment.
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