Apartment Hotel Market

Introduction:

Welcome to a new world in contemporary hospitality—Apartment Hotel Market, the foremost resource for apartment hotels. With the world moving to a new paradigm of traveling and working habits, serviced apartments carved an evolutionary way back by cutting-edge services that meet the dynamic traveler of today. From vibrant city centers to tranquil coastal retreats, these flexible stays meet the sophisticated travelers in search of a hassle-free lifestyle experience that complements work with play.

These are modern apartments enveloping our exclusive apartment hotel farm for this particular genre in the hospitality precinct. This new era of travel and work has created a white-hot opportunity for innovation in the hospitality sector, with serviced apartments leading the recovery by proving to be arguably the most inventive choice amongst all accommodations — delivering an unparalleled combination of both convenient benefits, cozy living experiences, and ultimate flexibility. These aforesaid multifunctional hotels operate either as city-center venues or peaceful coastal retreats that give today's smart travelers what they need to combine work and play.

Apartment Hotel Market

Size, by Product, - (USD Billion)

Midscale Extended Stay Hotel

Upscale Extended Stay Hotel

Economy Extended Stay Hotel

Other Products

The Market will Grow

At the CAGR of:

3.88%

The Forecast Market

Size for in USD:

$18.48 Billion

The Global Apartment Hotel Market Size Was Estimated At USD 13.15 Billion In 2023 And Is Projected To Reach USD 18.48 Billion By 2032, Exhibiting A CAGR Of 3.88% During The Forecast Period (2024-2032) 

You know the difference between apartment hotels and traditional accommodation, but what does this exciting market sector offer to hotel operators? Here in our blog, we provide a behind-the-scenes look at the world of apartment hotels with expert analysis, tips for prospective buyers, and insights from insiders. From the seasoned traveler needing inspiration on where to go next, to the industry expert who wants sneak insights into what is going to happen for everyone, our blog has got everything.

Market Overview:

The rise of alternative accommodations due to demand from travelers and remote workers has brought about changes in the dining category over the past two years. Serviced apartments, which are almost their own category in the middle of these options, provide travelers with everything from comfort to flexibility and convenience. Serviced apartments are much the same as serviced offices and long-stay hotels. They have combined traditional hotel features with all modern-day amenities. These property types usually have big suites with full kitchens, separate living rooms, and services including housekeeping, concierge service, and fitness facilities.

Market Trends:

Flexible Work-Stays

Contactless Check-in & Digital Concierge Services

Wellness and Health-based Amenities

Skip to footerSustainable Practices & Green Initiatives

Stay Longer and Save! Flexible Booking Policies

Single destination and local experiences that educate

The Confluence of Technology In Smart Apartments

Workation Packet / Remote Jobs

Key Players:

Hilton Worldwide: Global

HYATT HOTEL CORPORATION: GLOBAL MUSLIM ECONOMIC BUSINESS FORUM arellano UNITEDccak HUB UMNIVERSAL Archives —Universal Newspaper Infusion EMR Post},' India Sharer by Site Rest Elsewhere in Lostman Home Local Indonesia Company Expenditure Malaysia Address Followink AD MEDINA Wind to (*a Chepudo Barlan Back « ALCO TOLO GINDA GENIS AO9IRI CONO LOSU goley Mexico gorence Archettes ITablinders sourmanent Office 900-50750 ontaract futuregon County?

Marriott International: America Latin

InterContinental Hotels Group (IHG) – Everywhere

Ryan HyattAmerica, EuropeHilton Hotels & ResortsHyattpalaceChoice hotels InternationalAccor HotelsGlobal

Wyndham Hotel Group: Global

Four Seasons Hotels: Global

1: Omni Hotels & Resorts — North America, Europe

InTown Suites: North America

Motel 6: North America

Anadolu reported: Extended Stay America North America everywhere

Recent Development:

May 24, 2024 In line with Accor's fully integrated hospitality ecosystem, our ALL global & lifestyle loyalty program is set up in a way that helps not only the customers and employees but is equally rewarding for owners and partners. We are providing greater everyday value to the members of the program through our global offers and benefits in our comprehensive portfolio, by making life easier and creating unforgettable moments through links beyond hospitality.

Wyndham Rewards® members can now earn and redeem points on even more most-all-inclusive vacations when they book, check-in, or check-out at 9 more resorts in Mexico, Panama, and Jamaica joining Wyndham Hotels & Resorts (NYSE: WH) through an innovative new alliance with Decameron All Inclusive Hotels & Resorts.

The Stakeholder Engagement Report from Hilton Worldwide proves the company's intention of being associated with responsible events. Hilton Worldwide, in June 2024, rolled out its brand Spark by Hilton, which is meant to cater to the extended-stay segment. The target for this offering includes business travelers and family home bookings for longer lengths of stay, and it positions itself as a cost-effective alternative to traditional hotels.

This July Hyatt Hotels (NYSE:H) entered a new, branded, budget extended-stay market in an attempt to increase its market and destination network. With the promise of flexible living areas in the property's surround or design, experiences are tailored for the long-term needs of guests.

Leading the pack is Marriott International's extended-stay brand, Residence Inn, which also started on a growth spurt. An expected opening in August 2024 is planned to tap into the increasingly lukewarm appetite of business travelers to stay in apartment-style suites, with the brand looking toward flagship city openings in reservations across Europe and Asia.

Last month saw a slew of Staybridge Suites in the Middle East and North Africa region change hands in the InterContinental Hotels Group (IHG). Meeting the flexible, cozy needs of a business traveler, the hotels also take care of a family that seeks accommodation.

MainStay Suites- In July 2024, Choice Hotels International announced its biggest-ever investment in the MainStay Suites brand, an idea designed to target suburban markets across the country where demand for extended-stay brands continues to rise, outside of those major markets like New York City and Los Angeles, on which hotel companies have historically been measured.

Market Drivers:

Changing Travel Patterns

Growth in Remote working/ Digital Nomadism

Rising population, Urbanization

Exclusively Home-like amenities

Family & Group Benefit Map

Rising need for flexi-stay accommodation

Differentiate Your Brand and Be Engaging

Apartment Hotel Market

Size, by Product, - (USD Billion)

The Market will Grow

At the CAGR of:

3.88%

The Forecast Market

Size for in USD:

$18.48 Billion

Market Restraint Factors

Regulatory and Compliance Issues: Condos may have a few regulatory, permits, or compliance issues such as zoning restrictions and building codes. For any hotelier, these are big smacks in the face that can prove to be frustrating and expensive, both in terms of time and resources.

The classic hotel vs. Airbnb debate: serviced apartment labs too work to compete with hotels. Book now! A typical hotel on one hand may offer better prices or commoditized experiences, whereas the on-the-other-hand Airbnb 'hotels' can create unique and intimate approaches that are difficult to be competed with by lodging hotels.

This could be an economic downturn and market volatility, in that the economic uncertainty reflects in the forecast for tourist demand to spend, while consumer spending markets get volatile. Fluctuations in hotel occupancy and revenues. According to the author, these challenges may even be aggravated by global events, economic policies, and geopolitical tensions as a matter of further uncertainty.

The running and maintenance costs of running aparthotels are quite high, ranging from utility, housekeeping services, and programming property management in addition to renovations. Because these operating costs further expand, they start to chew into profit margins, which in turn can damage the economic viability of apartment-hotel properties.

Seasonal and Cyclical Demand: This is a major drawback for serviced apartmenting segments because they experience seasonal fluctuations in demand. It happens in high seasons such as holidays, summer months, among others. The hotelier needs to balance cash flow and revenue, given that peak seasons often result in occupancy levels less than the expected 100 percent.

Key Market Opportunities

Increasing demand in the market for long stay.

Suitable for Leisure & Corporate travelers

Personalized, flexible guest experience

Chance to make this trip to the region a unique and personally experienced stay

Technology Integration & Digital Services for Guest Experience

Sustainable and greener efforts

Niche Market and Segment Focus within the Accommodation Space

Mostly to new regions and locations.

Key Market Insights

Increase in demand for medium to long-term home rental: The rise of overall housing demand can be also attributed to work from home, relocation, and holidaying. Serviced apartments are the best-suited to cater to long-stay travelers with their ample space and home attributes.

Flexibility and Personalization: Servjsoned apartments allow guests to decide fully what their stay requires, as they may choose from plans. Another perk that guests seem to like is that in aprthotels, they can do things in their own time and tailor their own experience —from picking how many beds they want to use the kitchen gear for the breakfast option; this keeps them going until lunchtime.

Attracts diverse travelers: Aparthotels appeal to a much broader range of travelers, from families to corporate guests, from digital nomads to tourists. Flexible living spaces and amenities are used across all kinds of travel styles and ways of living by age groups.

According to one editor with Plutos.com, a serviced apartment is fully furnished and fitted with a kitchen but has weekly cleaning among a raft of other benefits. Here are some areas where technology can significantly improve the experience of the guests staying in an apartment.

With the integration of technology, not only will the experiences of the guests be different, such as the process of checking in and out without contact, but also for employees at hotels, they can make themselves comfortable, or otherwise, they will always be alert in attending to their posts. Increased focus on health and wellness: Health & wellness services are increasingly gaining prominence within serviced apartments, as part of the broader trend for the new generation to put well-being at the center of travel experiences. Gyms, yoga studios, and wellness programs supply services to those seeking to stay well beyond the travel destination.

Apartment Hotel Market TO (USD BN)

CAGR OF

3.88%

Apartment Hotel Market

18.48 Billion%

Market Segmentation:

1. By Type:

Luxury Apartment Hotels

Mid-Range Apartment Hotels

Budget Apartment Hotels

2. By Room Type:

Studio Apartments

One-Bedroom Apartments

Apartments with Two or More Bedrooms

3. By Application:

Leisure Travel

Business Travel

Extended Stay

4. By Booking Channel:

Online Travel Agencies

Direct Bookings

Corporate Bookings

5. By Region:

North America

Europe

Asia-Pacific

Middle East & Africa

Latin America

Apartment Hotel Market Stakeholders -

Hotel Owners and Operators

Real Estate Developers

People and Financial Institutions

Travelers and Guests

Tour Companies and Booking Engines

Hospitality Trade Associations

The Government And Its Regulatory Entities

Communities and Neighbors

FAQ (Frequently Asked Questions):

1. What is an apartment hotel?

Answer: Apartment hotel, otherwise referred to as residential hotel or extended-stay, is a serviced apartment complex that uses a booking system associated with hotels. The best of hotel accommodations are there with home-like facilities such as a kitchen, living room, and separate bedrooms.

2. What is an Apartment Hotel versus a Traditional Hotel?

Answer: Apartment hotels have full-fledged apartments complete with kitchen facilities and guests can cook their food, which is not possible in traditional hotels. Intended for lengthier stays, they are best suited with business travelers, families or anyone looking to get that homely feel.

3. Which are the Major tenants for apartment hotels?

Answer: Obvious ones are the business travelers, extended families on vacation, expatriates, and long-term visitors who need a little more space than your average hotel room provides.

4. Why stay in an apartment hotel?

Answer: Space, Cooking Your Own Meals, and Homey Feel allows for longer stays. Apartment hotels may also offer housekeeping, front desk support, and access to gyms or pools in the building premise.