If you’ve been tracking the European hospitality circuit, you’ll know how there’s been a massive change in terms of accommodation preferences of travelers. From the creative neighborhoods of Berlin serviced apartments to the romantic boulevards of Paris serviced apartments, these stays have been taking over the entire travel scene, leading to many skipping hotels in favor of spacious and private units. Let’s dive deeper into how the industry is doing currently.
Industry Trends for Serviced Apartments in Europe
The European serviced apartment segment has witnessed robust performance in 2024, backed by huge demand in the leisure and corporate categories alike. You’ll be amazed to know that occupancy levels in the serviced apartment category have hit the roof in recent times. Here are some key trends worth noting in this regard.
- Occupancy levels have reportedly increased by 3.8% from 2023 to 2024. RevPAR has also gone up by 4.4%.
- Interestingly, in the same period, the performance of regular hotels in Europe had lower occupancy rates.
- Most European markets saw increases in occupancy levels, with the UK posting steady occupancy rates.
- Serviced apartments continue to do strong in London with skyrocketing occupancy levels. Paris has also outstripped the national average in France with regard to occupancy growth last year.
- Corporate demand was the quickest growing category in 2024, driven by the rebound after the pandemic and also the normalization of professional business travel.
- Average stay lengths also went up in the serviced apartment category in 2024. It indicates clearly that serviced apartments sync well with modern travel needs. Guests like you prefer these units for extended stays, relocations, Bleisure (business + leisure) travel, and other needs.
- This indicates that the sector is witnessing a shift away from the shorter-stay model and is going back towards traditional patterns of bookings.
- Guests are also prioritizing flexible cancellations and shorter booking windows. Last-minute booking volumes have also gone up, broadly indicating higher demand for flexibility among travelers.
- Technology has also become a major pillar for these serviced apartments across Europe. You will be amazed to know how most operators are already integrating automated guest communication, contactless check-ins and check-outs, personalized guest experiences, and smart energy management systems at their properties.
- About 16, 500 rooms are also anticipated to hit the market within five years, with the UK contributing about 1/3rd of this tally, followed by key markets like Germany, Spain, and France.
Growing efficiency, sustainability, technological improvements, and flexibility are the core factors driving the growth of serviced apartments throughout Europe.
Why European Travelers Choose Serviced Apartments
You must be wondering why travelers in Europe are inclining more towards serviced apartments over traditional hotels. Some of the key reasons include:
- Serviced apartments are more spacious than regular hotels. They offer dedicated living and dining areas along with separate bedrooms. The extra space makes them immensely comfortable for travelers.
- You can imagine how private these apartments are. It’s just like staying in your own home away from home. You do not have to put up with crowded hotel lobbies or receptions anymore.
- There is full flexibility in terms of choosing both short and long stays in your chosen locations. You can also extend your stay conveniently as you require.
- There is total freedom in terms of inviting people over, cooking your own meals (with well-equipped kitchens and appliances), relaxing at home, and even getting some work done.
- These apartments will cost you less, especially for extended stays, in comparison to hotels. They often come with housekeeping, maintenance, laundry, and utilities included in the final price. At the same time, self-catering helps you avoid dining out costs each day.
- You can immerse yourself more in the local culture and neighborhood—whether you’re staying in a riverside Amsterdam serviced apartment or a vibrant city-center Barcelona serviced apartment—unlike isolating yourself in a hotel. Be a part of the neighborhood, live like a local, discover hidden gems, and interact with the neighbors- the possibilities are endless!
- Home-like comfort with hotel-like services and amenities are often the big draw for travelers at these apartments. From high-speed Wi-Fi and dedicated business amenities to housekeeping, F&B provisions, on-site gym and pool access and elevators, you will find everything you need at your fingertips minus the hidden costs.
- You can choose apartments in your desired configurations as per your travel group size. This helps you avoid booking multiple hotel rooms, which can be expensive otherwise.
What Lies Ahead for Serviced Apartments in Europe?
As you can see, serviced apartments are on a red-hot streak across Europe and the trend is likely to continue, going by current demand in this category. The sector is expected to get more units throughout leading European cities and several secondary locations too. More buildings will be refurbished and converted into apartments, while sustainability will become a focal point. More properties will integrate eco-friendly measures and travelers will prioritize those units aligning with their philosophies in this regard.
So, just imagine cooking a meal, lounging about, watching television, making a cup of coffee, or simply heading out to explore the neighborhood. Life becomes much more memorable when you’re staying at a serviced apartment. This has made the category immensely popular in Europe in recent years. If you’re planning a visit to any leading European city in the near future, make sure you book an apartment preferably with TheSquare to add a new dimension to your stay.
