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 called “apart-hotels,” are basically fully furnished apartments you can rent for a short trip or even a long stay. They come with perks like room cleaning, just like a regular hotel. You might hear different names for them, and honestly, there's no real official difference between all the terms. An aparthotel gives you a fully equipped apartment, perfect whether you're traveling for work or just for fun, and it doesn't matter how long you're staying. Think of it this wayyou get more space and better furnishings than in a typical hotel room. Having a separate bedroom, a private kitchen, or even laundry makes a longer trip way more comfortable and feels more like home. Plus, especially for longer stays, the price can be a big win. While a hotel is usually one small room, an apartment hotel gives you more square footage. That extra space is great for things like storing sports gear or your own groceries.

Think of an apartment hotel like thisyou can find them in a single building, spread across a few buildings, or even in individual apartments scattered around a city or region. Sometimes, it's just one apartment rented out by the owner. They can be managed by the owner themselves or a company – like through an agency. Depending on how many people you're bringing, you can book anything from a roomy studio with a kitchen to a full-blown apartment with multiple bedrooms. Plus, some apartment hotels have extras like a shared lounge or even a gym right there. And here's a little insider tipsome places call their apartments 'suites' when they're part of an aparthotel. You'll usually find they've got a 24/7 front desk, a phone in your room to reach them, a place to grab food and drinks either in the building or nearby (either run by them or someone else), and laundry services – either in your apartment or offered separately.

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.

It looks like global business travel is finally bouncing back after the COVID-19 hit! While everyone else was rushing off on vacation after the pandemic, corporate travel was a bit slower to get going, but it really took off in 2022 and we’re expecting it to grow considerably in 2023. A lot of this is being driven by us business travelers who are just itching to connect with clients, see our colleagues face-to-face, and hit up those in-person events and conferences we've been missing for the last three years. After a huge drop of 53.8% in 2020 to USD 661 billion, global spending bounced back to USD 697 billion in 2021. The Global Business Travel Association (GNTA) even projects that global business travel spending will be 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

To Get a Summarized Market Report By Type-

Okay, so when we talk about extended stay hotels, we can break them down by typeMidscale, Upscale, and Economy. And guess what? Midscale Extended Stay Hotels were the most popular in 2022. These hotels really try to make you feel at home. They usually have suites or little apartments with different areas for sleeping and chilling out. This extra space and privacy is a big win, especially if you're traveling with family, friends, or if you just need a good spot to get some work done.

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.

Looking for a place to stay a while without breaking the bank? An economy extended stay hotel could be just the ticket! They're designed for folks who need a place for a longer period, like families on extended vacations, construction workers, or anyone moving to a new city for a job or just because. You won't find luxury, but they offer the basics to make your stay easy and affordable.

Think simple and functional when it comes to the rooms or suites. They're built to be budget-friendly. So, while you might not find all the fancy extras of a high-end hotel, you'll have a comfortable, practical space to chill out and get some rest.

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

So, when we look at who's using apartment hotels in Europe, we can break it down by ApplicationTravelers, Business Customers, Trainers and Trainees, Government and Army Staff, and Others. And get this - Travelers were the biggest group in 2022! Makes sense, right? Whether they're kicking back on vacation or hustling for work, travelers want comfy and easy places to stay that fit their needs. Apartment hotels are super appealing because they feel like home. If you're traveling for fun, those vacation rental apartment hotels are awesome because they have big suites and cool perks. More space for families and friends to hang out! Plus, having a full kitchen means you can cook whatever you want, which is great if you have specific diets or just like making your own meals. And let's not forget the laundry – being able to wash your clothes is a lifesaver, especially on longer trips.

For those of you hitting the road for work, both fancy extended stay hotels and corporate housing can be a real lifesaver, giving you a comfy and productive home away from home. Think well-designed suites with everything you need to get things done, like proper workspaces and super-fast internet – basically, your office away from the office. Plus, they're usually in great locations, close to business centers and easy to get to from just about anywhere, making them perfect if you're heading to meetings, conferences, or any kind of business event. The extra room in these apartment hotels is a game-changer, letting you chill out and relax after a long day, which is key to keeping that work-life balance in check while you're traveling. Heads up, trainers and trainees! If you're going to workshops, seminars, or any kind of training, you'll probably want a place that works for both learning and living. That's where apartment hotels shine, giving you separate spaces for both. This way, trainees can really focus on their sessions without sacrificing 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

To Get a Summarized Market Report By Geography- 

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