Apartment Style Hotel Market Size, Share, Growth and Industry Analysis by Type (Upscale Extended Stay Hotel, Midscale Extended Stay Hotel, and, Economy Extended Stay Hotel) LED, And, Surface-Mount (SMD) LED) By Application (Travelers, Business Customers, Government, And, Others) Regional Forecast To 2032

Updated On: 05 September 2024

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APARTMENT STYLE HOTEL MARKET REPORT OVERVIEW

The global Apartment Style Hotel Market size expanded rapidly in 2024 and the market is projected to grow substantially by 2032, exhibiting a prodigious CAGR during the forecast period.

An apartment-style hotel is a type of hotel accommodation which can be compared with residential housing: comfortable apartments for living both for a few days and many months, with all necessary services of hotel industry. Such lodgings often include all essential amenities needed for a comfortable stay including fitted kitchens, places for dining and living and bedrooms. It is very different from the regular hotels, as they offer more space and more freedom staying there for longer periods, which will make them suitable for families, businessmen and anyone who needs an apartment rather than a hotel room. Amenities include availability of cleaning services, laundries and hotel services such as fitness and swimming pool among others hence is a choice for comfortable and self-contained stay.

COVID-19 impact: Social Distancing Norms and Lockdowns during Pandemic Decreased Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

COVID-19 affected apartment-style hotels mainly because several travelers avoided those facilities due to stipulations on movement and health concerns. However, having individual rooms with kitchens and living rooms as well as confined classy styles of construction made them suitable for long term stay during the pandemic offering a home feel. Some developed new measures such as increasing cleanliness, implementing touch less operations, and accommodating business people who needed long-term stays. Although, the rest of the hospitality industry tried to struggle, apartment-style hotels had changed the key demand from guests in terms of safety, privacy, and flexibility during the crisis period.

LATEST TRENDS

"Technology and Service Innovations to Improve Customers’ Experiences to Accelerate Market Growth"

New innovation in apartment-style hotels include technology and service innovations to improve the customers’ experiences. The use of intelligent home system, smart home devices like voice controlled personal assistants, smart lighting, no key door opening, among others, form part of elegance that are currently common. Most of the facilities are adopting virtual concierge services, and mobile applications to enhance the easy check-in and outsourced room service and tour guide services. Also, facilities such as exercise equipment in the room and classes that can be joining through video calls have become a trend. These entire innovations meet today’s traveler’s needs of having quick access to the comforts, connection and convenience in their temporary sanctuary. The above-mentioned factors are driving the apartment style hotel market growth.

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APARTMENT STYLE HOTEL MARKET SEGMENTATION

By Type

Upscale extended stay hotel, midscale extended stay hotel, and, economy extended stay hotel

• Upscale Extended Stay Hotel: Luxury select service international accommodation provide services for the long-term guests in the facilities that have first-class amenities such as full kitchens and elegant furniture. These are those who offer services and facilities for those people who look for a luxury vacation and stay for an extended period of time.

• Midscale Extended Stay Hotel: Midscale select service or limited service, extended stay hotels are reasonably priced offering basic necessities and facilities such as kitchens and laundry places. They fit well with the affordable and convenient criterion, perfect for people requiring long-term accommodation not a hotel, but not a room.

• Economy Extended Stay Hotel:  Economy is the type of extend stay hotels that are characterized by a low price level and a limited number of services for long-term guests. Several have amenities such as kitchens and free Wi-Fi services, thus catering for travelers who are on business or more often those in need of cheap and longer stays.

Application

Travelers, business customers, government, and, others

• Travelers: Businessmen and other travelers in search of comfort and comfort and with long stay requirements go for such services . These options correspond more to those clients who want to get the comfort of a home while they are away from home.
• Business Customers: A business customer prefers an extended stay hotel that comes with a desk, internet connection and with close proximity to business destinations. Hence, these rooms are built to suit business people on long term missions or travelers who are always on the road.
• Government: Business travelers, especially those who are assigned to work in another city for a few weeks or months would opt for an extended stay hotel since these are cheap and easily accessible. They entail basic facilities, particular and convenient accommodation terms well suited to governmental traveling needs.

• Others: Others who may include families that are in the process of moving from one house to another or people who are wait listed in another hotel enjoy the flexibility of an extended stay hotel with added perks of dozing off like in a home. These are perfect temporary dwelling arrangements to cater for different sustainable needs in the long-run.

DRIVING FACTORS

"Need For a Flexible Accommodation for Business Travelers, Families, and Other Long Term Guests to Amplify Market Growth"

There are four driving forces that help spur the apartment style hotels and some of them are the following: The need for a flexible home like accommodation for business travelers, families, and other long term guests. People find comfort in spacious and private places for dining and cooking and other leisure activities, with extra boasting of having custom fitted kitchenettes. Housing design has also been affected by the advent of the new forms of work, such as remote work and extended business travels which require comfortable living environments that are independent from the work environment. Amenities like Wi-Fi connectivity, spa and gym, and even customized services are other things that today’s travelers care for. The balanced offer of living comfort with hotel functions makes the apartment-styled hotels more and more attractive within the hospitality sector. All of the above-mentioned factors are driving the apartment style hotel market share.

"Desire for Extended-Stay Guests to Occupy Larger, More ‘Autonomous’ Rooms to Propel Market Growth"

Other driving forces towards apartment-style hotels are such trends as the desire for extended-stay guests to occupy larger, more ‘autonomous’ rooms. COVID catchphrases such as ‘contactless’ and ‘cleanliness’, together with practicalities of confined spaces, paramedical accommodation constraints, has made travelers interested in spaces they can control to ensure they are safe. Also, there are more families travelling and people moving around for jobs – which have increased the demand for accommodation that is more than just a bedroom. The convenience of enjoying personalized services, opting for rather flexible booking options and using additional in-room facilities like kitchens, laundry services etc. increase the popularity of such hosting solutions.

 RESTRAINING FACTOR

"Comparatively Higher Operating Costs in Management to Decrease Market Growth"

Limitations of apartment style hotels are that they have comparatively higher operating costs in managing rather larger self contained units and in offering extended services. Whether it is a need for more space and better amenities increases prices and thus a product may not appeal to the wallet-conscious traveler. Besides, there is the threat from substitute products, which include vacation rentals, and serviced apartments among others. Besides, the location is another element of demand since most of these hotels are established in the large cities that restrict the opportunities for tourists seeking more rural or recreational places. Outside’s factors such as changes in the economic climates and traveling patterns also play other performances in occupancy levels.

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APARTMENT STYLE HOTEL MARKET REGIONAL INSIGHTS

The market is primarily segmented into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa

"North America to Dominate Market Share in Upcoming Years Due to Well-Developed Travel and Tourism Sector"

North America holds the largest share of apartment-style hotels due to its Well-developed travel and tourism sector especially in cities such as New York, Los Angeles, and Chicago. Those who want to stay for a long duration due to business reasons, work from home, or even people who are relocation as a large population of the region has a high demand for such services. Also, well-developed physical and communication infrastructure, high percentage of urbanization and numerous corporate offices enhance this segment growth. The focus in the region on creating a new value and enhancing service delivery is also particularly helpful in solidifying its position on the market.

Key Industry Players

"Leading Players adopt Acquisition Strategies to Stay Competitive"

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

List of Market Players Profiled

• Hilton Worldwide (U.S.)
• Hyatt Hotel (U.S.)
• Marriott International (U.S.)
• InterContinental Hotels Group (IHG) (U.K.)
• Choice Hotels International (U.S.)
• Accor Hotels (France)
• Wyndham Hotel Group (U.S.)

INDUSTRIAL DEVELOPMENT

November 2023:  Looking at the changes that occurred in the apartment-style hotel industry there was a new kind of product that came into the market in 2023 called smart living suites. These suites are wired with smart home technology systems; controls for lighting, AC/truck, and entertainment are by voice. For the same, they also provide higher end security features like the facial recognition of the owner for unlocking the door. This product innovation improves guest experience and individuality, thus satisfying the technological sophisticated consumers who want comfortable housing. It also caters for the need of work-like facilities in service-inc hotels as seen from the incorporation of high-speed internet and remote workstations.

Report Coverage

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.