Global Serviced Accommodation – 2024 Market Overview: Destination Nation, By David Sassoon
The Serviced Apartment and Corporate Housing Markets in 2024: Trends, News, and Regional Growth
As we step half way into 2024, the serviced apartment and corporate housing markets are witnessing significant transformations, driven by evolving business needs, technological advancements, and changing traveller preferences. This article delves into the latest trends, notable news, and regional growth patterns shaping these markets in 2024.
Key Trends in 2024
1. Rise of Hybrid Accommodation Models
The blurring lines between traditional hotels, serviced apartments, and co-living spaces are giving rise to hybrid accommodation models. These models offer the flexibility and homely comfort of serviced apartments with the services and amenities of hotels. This trend caters to the modern traveller seeking longer stays and a more personalized experience.
2. Increased Demand for Long-Stay Solutions
With the continued rise of remote work and digital nomadism, there is a growing demand for long-stay accommodation solutions. Serviced apartments and corporate housing providers are expanding their offerings to cater to professionals who require extended stays with home-like amenities and work-friendly environments.
3. Sustainability and Eco-Friendly Practices
Sustainability continues to be a focal point in the hospitality industry. In 2024, we see a heightened emphasis on eco-friendly practices, from energy-efficient appliances to sustainable building materials. Serviced apartment providers are integrating green technologies and promoting responsible travel to attract environmentally conscious clients.
4. Technological Integration
The integration of technology is transforming the serviced apartment sector. Keyless entry, smart home devices, high-speed internet, and digital concierge services are becoming standard offerings. These technological advancements enhance the guest experience and streamline operations.
5. Personalization and Customization
Personalization is key in the serviced apartment market. Providers are leveraging data analytics to understand guest preferences and offer customized services. From tailored welcome packs to personalized recommendations for local attractions, the focus is on creating a unique and memorable stay for each guest.
Regional Growth Patterns
1. North America
In North America, the corporate housing market is experiencing robust growth, particularly in tech hubs like NYC, Silicon Valley, Austin, CA and Toronto. The demand is driven by a combination of corporate relocations, project-based assignments, and an influx of remote workers. The region is also seeing a surge in sustainable and tech-integrated accommodations.
2. Europe
Europe’s serviced apartment sector is expanding rapidly, with significant growth in cities like London, Paris, Berlin, Zurich and Amsterdam. The post-Brexit business environment and the revival of business travel are key drivers. Additionally, the focus on hybrid models and luxury serviced apartments is gaining traction, catering to both business travelers and tourists seeking extended stays.
3. Asia-Pacific
The Asia-Pacific region is witnessing exponential growth, led by cities such as Singapore, Tokyo, and Sydney. The region’s economic dynamism and increasing foreign direct investments are propelling the demand for corporate housing. Moreover, the emphasis on technological advancements and smart living solutions is prominent in this market.
4. Middle East and Africa
In the Middle East, Dubai and Riyadh are emerging as hotspots for serviced apartments, driven by large-scale events, tourism, and business expansions. In Africa, cities like Johannesburg and Nairobi are seeing growth, supported by multinational corporations and a burgeoning middle class.
5. Latin America
Latin America’s serviced apartment market is growing steadily, with key markets in Mexico City, São Paulo, and Buenos Aires. The region’s economic diversification and improving business climate are attracting international companies and long-term travelers.
Notable News in 2024
– Major Acquisitions and Mergers
The serviced apartment sector is seeing consolidation through major acquisitions and mergers. Leading players are expanding their portfolios and entering new markets to enhance their global footprint.
– Launch of Innovative Brands
New and innovative brands are being launched, focusing on niche markets such as eco-conscious travelers, luxury long-stays, and tech-savvy professionals. These brands aim to differentiate themselves through unique value propositions.
– Expansion of Loyalty Programs
To retain and attract clients, serviced apartment providers are expanding their loyalty programs. These programs offer exclusive benefits, personalized services, and rewards that cater specifically to long-term guests.
Hotel Brands Expanding into Apart-Hotel and Apartment Concepts: A 2024 Overview
In response to the growing demand for flexible and extended-stay accommodations, several prominent hotel brands are expanding their portfolios to include apart-hotels and apartment concepts. These new ventures cater to the evolving needs of modern travelers, offering the comforts of home with the amenities and services of traditional hotels.
Marriott International Launches “Residence Collection”
Accor Expands into Long-Stay Market with “Aparthotel by Novotel”
Hilton Unveils “Hilton Homes” Concept
Hyatt Debuts “Hyatt Stay” for Extended Stays
Radisson Red Ventures into Apart-Hotel Market
Conclusion
The serviced apartment and corporate housing markets in 2024 are marked by dynamic changes and significant growth. The trends of hybrid accommodation models, long-stay solutions, sustainability, technological integration, and personalization are reshaping the landscape. With robust regional growth and notable industry developments, the sector is poised for an exciting year ahead. As the market evolves, providers that adapt to these trends and meet the changing needs of travelers will thrive in this competitive environment.