Overview of the Report and Its Authors
The European Serviced Apartments Report 2026 is a research spotlight produced by Savills, a global real‑estate services firm with a network of over 700 offices worldwide. The study is authored by Richard Dawes, Pan‑European Director of Hotel Capital Markets, and Thomas Emanuel, Head of Hospitality Thought Leadership for EMEA at Staycity, London. Their expertise combines capital‑markets insight and hospitality strategy, providing a comprehensive analysis of the serviced‑apartment sector across Europe.
Market Size and Supply Dynamics
The report identifies 86,911 serviced‑apartment rooms, accounting for roughly 8 % of total accommodation stock in 26 European gateway cities. An additional 12,533 rooms (about 12 % of the pipeline) are under construction or in advanced planning, indicating a growing share of the market. In 2025, transaction volumes reached €1.2 bn, representing 5 % of total hospitality deals, while investor appetite rose by 22 % in 2026.
Regulatory Landscape Shaping Demand
Regulatory tightening on short‑term rentals is redirecting demand toward planning‑compliant serviced apartments. Examples include Paris’ 2025 Le Meur Law limiting primary‑residence rentals to 90 nights per year, and Amsterdam’s 2026 cap of 15 nights in central districts. Such measures reduce informal rental supply and bolster occupancy for serviced apartments, which typically face lower political and regulatory risk.
Operational Performance and Sustainability Benefits
Serviced apartments operate on a bedroom‑led cost structure, delivering higher margins and lower volatility than traditional hotels. In 2025, occupancy averaged 79 % with an average daily rate of €136, outperforming the broader hotel market (75 % occupancy). Longer‑stay formats promote sustainability by lowering per‑night carbon footprints compared to multiple short trips, aligning with environmental objectives.
Demand Drivers and Guest Profiles
Key demand drivers include corporate travel policies favouring professionally managed accommodation, the rise of digital nomads seeking in‑unit amenities, and a shift toward longer stays—7 to 12 nights increased by 11 % in 2025. Families also prefer the space and cost efficiency of serviced apartments over full‑service hotels.
Investment Momentum and Brand Expansion
Institutional capital continues to flow into the sector. Transaction volumes in the UK (£660 m) and Spain (€392 m) across 2024‑2025 equated to 6 % and 5 % of hospitality investment respectively. Major hotel groups expanded extended‑stay brands from 14 in 2015 to 25 in early 2026, a 1.8‑fold increase. Notable capital raises include €75 m for Limehome and €104 m for Edgar Suites, underpinning further development and consolidation.
Cross‑Border Growth and Future Outlook
Operators such as Edgar Suites, TFE (Adina brand), and Limehome are expanding beyond their original markets, illustrating the fragmented yet scalable nature of the sector. Forecasts suggest continued mid‑single‑digit growth in international arrivals and travel spend, reinforcing demand for flexible, sustainable accommodation. The report concludes that regulated, professionally managed serviced apartments present a resilient, scalable investment aligned with Europe’s sustainable housing objectives.