Europe Apartment Hotel Market Size By Type (Midscale Extended Stay Hotel, Upscale Extended Stay Hotel, Economy Extended Stay Hotel), By Application (Travelers, Business Customers, Trainers and Trainees, Government and Army Staff), By Geographic Scope And Forecast

Europe Apartment Hotel Market Size And Forecast

Europe Apartment Hotel Market size was valued at USD 1,331.69 Million in 2022 and is projected to reach USD 2,740.85 Million by 2030, growing at a CAGR of 9.48% from 2023 to 2030.

The rise in international and domestic travel, coupled with a growing trend of experiential tourism, led to increased demand for apartment hotels in Europe. The Europe report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

What is Apartment Hotel?

Apartment hotels, also commonly known as “apart-hotels”, refers to fully furnished apartment available for a short-term or long-term stay that comes with hotel-like amenities such as room cleaning services. Various terms are often used interchangeably and currently, there is no official distinction between different concepts. An aparthotel offers fully furnished and equipped apartments, which are suitable for both business and leisure use, regardless of the length of stay. The apartment hotel offers more space and better furnishings than a standard hotel room. For example, a separate bedroom, private kitchen or laundry facilities make a longer stay much more comfortable and homelike than in a traditional hotel room. Especially for longer stays, the price difference is also a significant advantage for an apartment hotel. Where a hotel is usually occupied by one relatively small room, an apartment hotel typically offers more square meters. It offers a more comfortable space for storing sports equipment or own food, for example.

An apartment hotel can be found in hotel residences in a single building, several buildings or single apartments located in a city or region, or even a single apartment rented by a private owner. The accommodations can be managed by a private owner or by a company (by an agency, for example). Depending on the number of guests, the user can book a spacious studio with a kitchen or an entire apartment with several bedrooms. Some apartment hotels also offer additional facilities like a communal lounge or an on-site gym. Some operators call their apartments ‘suites’ within an aparthotel. They typically offer 24/7 manned reception on site – room telephone connection to the front desk; food and beverage outlet on-property or within close proximity (either operated or outsourced); and laundry services if not provided in the units.

Europe Apartment Hotel Market Overview

The advantage of an apartment hotel over an apartment rented on the open market is its flexibility. It is easy to book an apartment on an online site, for example, and there are no notice periods or rental guarantees. Apartment hotels are widely used to accommodate those traveling for work, but they are also ideal for other temporary accommodation needs, such as holidays. There are usually no minimum stay requirements, so users can book an apartment hotel for a weekend, for example.

The apartment hotel industry in Europe is experiencing steady growth and popularity for the past few years. Apartment hotels in Europe cater to both business travelers seeking flexible and comfortable accommodations and leisure travelers looking for a more authentic experience. The rise in international and domestic travel, coupled with a growing trend of experiential tourism, led to increased demand for apartment hotels in Europe. Many established hotel chains and independent operators are expanding their portfolio of apartment hotels in major European cities, as they saw it as a lucrative segment.

The apartment hotel sector continues to grow its share of corporate accommodation spend. One of the primary target markets for apartment hotels is the corporate market, whether it’s a business trip, a short/long-term project, or a permanent relocation. The rising demand for apartment hotels in Europe by corporate and business travelers is a notable trend in the hospitality industry.

Global business travel activity has begun its rebound from the sharp downturn brought about by the COVID-19 pandemic. After lagging in the post-pandemic explosion in leisure travel demand, corporate travel took off in 2022 and is expected to grow considerably in 2023. Business travelers themselves are driving much of this demand, keen to connect with clients, reconnect with co-workers, and attend in-person events and conferences that they’ve missed during the past three years. After declining 53.8% in 2020 to USD 661 billion, global expenditures rebounded to USD 697 billion in 2021. The Global Business Travel Association (GNTA) projects global business travel spending of just under USD 1.2 trillion in 2023.

Europe regained ground in 2022 and is now forecast to become the fastest-growing business travel market in 2023. Europe’s business travel spend is expected to grow by 25.3% in 2023. Six countries – Germany, France, the UK, Italy, Spain, and the Netherlands – accounted for 65% of corporate travel expenditure in the region in 2022. The Compound Annual Growth Rate (CAGR) in business travel spending in Western Europe between 2021-2026 is expected to be 23.4% and 10.9% in developing Europe, as per the estimation of the Global Business Travel Association.

The covid-19 pandemic caused a major shift in travelers’ needs. This is visible in business travel as project workers, expats, and international professionals are now favoring home-like accommodations and longer business trips when traveling, and one-day trips are being replaced with digital meetings. Business travelers are giving more preference for additional space, flexibility, and places for remote working.

Europe Apartment Hotel MarketSegmentation Analysis

The Apartment Hotel Market is segmented on the basis of Type, Application, and Geography.

Europe Apartment Hotel Market, By Type

• Midscale Extended Stay Hotel
• Upscale Extended Stay Hotel
• Economy Extended Stay Hotel

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Based on Type, the market is divided into Midscale Extended Stay Hotel, Upscale Extended Stay Hotel, Economy Extended Stay Hotel. Midscale Extended Stay Hotel accounted for the largest market share in 2022 Midscale extended stay hotels offer a range of features and amenities designed to make guests feel at home and enhance their overall experience. One of the primary attractions of these properties is the availability of suites or apartments with separate living and sleeping areas. This allows guests to have more space and privacy during their stay, making it especially appealing to families, groups, or those who require a comfortable workspace.

In-room amenities often include fully-equipped kitchenettes or even full kitchens, allowing guests to prepare their meals and save on dining expenses. The kitchenettes typically feature a microwave, refrigerator, stove or cooktop, and cooking utensils. This feature appeals to travelers who prefer to have the option of cooking their meals or simply enjoy the convenience of having a refrigerator to store food and beverages.

Midscale extended stay hotels also offer practical amenities like laundry facilities or guest laundries, allowing guests to do their laundry conveniently on-site. Complimentary Wi-Fi is almost always included, providing connectivity for business and leisure purposes.

An economy extended stay hotel is a budget-friendly option for travelers seeking affordable accommodations during their extended stays. These properties cater to cost-conscious individuals, families on extended vacations, construction workers, and individuals relocating to new cities for work or personal reasons. Economy extended stay hotels provide essential amenities and services, making them a practical and convenient choice for those on a limited budget.The rooms or suites in economy extended stay hotels are simple, functional, and designed with cost-effectiveness in mind. While they may lack the opulence of upscale accommodations, they offer a comfortable and practical space for guests to rest and relax.

Basic kitchenette facilities or limited cooking options are typically provided in economy extended stay hotels. While they may not offer full-sized kitchens, guests can still prepare simple meals or snacks, which can be beneficial for those looking to save on dining expenses during their extended stays. To cater to the needs of extended stay guests, these hotels often feature self-service laundry facilities, allowing guests to do their laundry conveniently without relying on external services. Amenities in economy extended stay hotels are often limited, but they may include basic fitness centers or offer continental breakfast options to kickstart guests’ mornings.

Standard business services such as Wi-Fi and business centers may be available to support guests who need to work remotely or handle essential tasks during their stays. Economy extended stay hotels are strategically located in accessible and convenient areas, providing easy access to major highways, public transportation, or airports. This makes them a practical choice for those who need to commute frequently or explore the city easily.

Europe Apartment Hotel Market, By Application

• Travelers
• Business Customers
• Trainers and Trainees
• Government and Army Staff
• Others

On the basis of Application, the Europe Apartment Hotel Market has been segmented into Travelers, Business Customers, Trainers and Trainees, Government and Army Staff, and Others. Travelers accounted for the largest market share in 2022. Travelers, whether on leisure or business trips, seek comfortable and convenient accommodations that cater to their specific needs. Apartment hotels offer an attractive option for travelers looking for a home-like environment during their journeys. For leisure travelers, vacation rental apartment hotels are particularly appealing due to their spacious suites and amenities, providing more room for families and groups to relax and bond. The fully equipped kitchens in apartment hotels allow travelers to prepare their meals, giving them the flexibility to cook according to their preferences and dietary requirements. Additionally, laundry facilities in these properties enable travelers to manage their laundry conveniently, especially during extended stays.

For business travelers, upscale extended stay hotels and corporate housing provide a comfortable and productive environment. These properties offer well-appointed suites with amenities tailored for productivity, such as workspaces and high-speed internet connectivity. Their strategic locations near business districts and major transport hubs make them suitable choices for professionals attending meetings, conferences, or business events. The additional space in apartment hotels also allows business travelers to unwind and relax after a day of work, fostering a work-life balance during their trips. Trainers and trainees attending workshops, seminars, or training programs often require accommodations that can serve both their learning and living needs. Apartment hotels offer an ideal solution, providing separate living and working spaces. This setup allows trainees to focus on their training sessions without compromising on comfort during their stay.

Apartment hotels can also accommodate groups of trainees attending training programs. These properties offer communal living options, enabling participants to share common areas and collaborate outside of the training sessions. Additionally, some apartment hotels may provide access to shared facilities such as meeting rooms or conference spaces, further catering to the needs of trainers and trainees.The versatility of apartment hotels makes them a preferred choice for trainers and trainees, offering a conducive environment for learning and interaction while ensuring a comfortable and enjoyable stay experience.

Europe Apartment Hotel Market, By Geography

• UK
• Germany
• France
• Italy
• Spain
• Rest of Europe

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On the basis of regional analysis, the Europe Apartment Hotel Market is classified into UK, Germany, France, Italy, Spain, and Rest of Europe. UK is expected to hold the largest market share of Apartment Hotel in the forecast period followed by Germany.

Key Players

The major players in the market are Hilton Worldwide, Staycity Aparthotels, Edyn, Marriott International, InterContinental Hotels Group (IHG), Choice Hotels International, Accor Hotels, Hyatt, Frasers Hospitality, CitySuites among others. Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• Accor announced it will open 11 new properties in the Middle East & Africa under its brand Adagio. This will help the company to broaden its existing apartment hotel portfolio.
• Staycity Group, announced that it has acquired a 0.06-hectare site in Stratford, East London, for the development of a 240-apartment through its associated development arm. This property is due to open in the second half of 2026. This acquisition will add further scale to the existing properties of Aparthotels of the company.
• Staycity Group announced that it has opened its seventh property in Dublin, giving it nearly 1,200 apartments in its home city. This property will add 340 studio and one-bed apartments to its existing portfolio.
• Frasers Hospitality expanded its presence in the Middle East with the entry into a new management agreement to operate Fraser Suites Al Liwan Bahrain. The newly anticipated Fraser Suites Al Liwan Bahrain will offer 63 gold-standard serviced apartment units.
• Hilton announced the signing of the Waldorf Astoria Hotels & Resorts brand’s third property in Mexico. Waldorf Astoria San Miguel de Allende will offer 120 hotel guest rooms and 24 best-in-class Waldorf Astoria branded residences. The property is owned by PEAKAIR GROUP, is being developed by Skyplus Developments Corp., and will be managed by Hilton
• Marrio