The UK’s serviced apartment sector is set for “strong growth” in 2026, fuelled by an increase in corporate relocations and an uptick in business-leisure blended trips, according to the latest Global Serviced Apartment Industry Report (GSAIR).
The report – released this week by Ariosi Group, part of the Habicus Group and sister company to serviced apartment agent SilverDoor – expects the UK’s extended-stay market to double in value to £6.52 billion by 2033, with a compound annual growth rate of 8.8 per cent.
Corporate relocation demand is expected to drive ‘sustained’ growth for serviced apartments in 2026 and beyond, particularly within the energy, technology, legal and finance sectors, according to the report.
Enquiries from companies looking to relocate staff to the UK were up 8 per cent year-on-year in April 2025, the GSAIR said. Project-based roles and housing transitions are also anticipated to grow, which is expected to drive up the number of longer stays (of 30 days or more).
The report also noted a trend towards blended or ‘bleisure’ trips, which is projected to further boost demand for serviced apartments. Data from the Global Business Travel Association (GBTA), as referenced in the report, shows that a quarter of business travellers are already participating in blended travel.
In addition, an increase in hybrid working arrangements is expected to drive greater investment in co-working facilities and ergonomic workspaces within serviced apartments. At the same time, the growing presence of Gen Z in the workforce is expected to drive greater demand for – and investment in – wellness amenities and more efficient booking systems, according to the GSAIR.
Carol Fergus, director of global travel, events and ground transportation at Fidelity International, stated in the report: “Since Covid, utilisation of serviced apartments has increased due to dynamic working practices and a preference for improved work-life balance. Individuals are selecting this accommodation option because more of their peers are working remotely, and they value the flexibility to choose a serviced apartment over a traditional hotel room.”
Pricing and booking trends
The report, which analysed two years of booking data from Silverdoor and Citybase, including 34,000 reservations across 130 countries, also highlighted global pricing and booking trends.
The global average daily rate (ADR) for 2025 is £145, however this figure varies “significantly” according to location, apartment type and whether pets are permitted as part of the booking. In the UK, for example, the ADR for a three-bed property is nearly £100 higher than the national average, according to the dataset.
ADR growth across major European cities has been “limited” over the past year, with rates in London, Paris and Amsterdam increasing less than 2 per cent year over year.
Meanwhile, booking lead times are increasing. In the UK, bookings made more than 60 days in advance accounted for 28 per cent of all serviced apartment reservations in the first half of 2025, up from 25 per cent in H1 2024. Similarly, non-UK bookings with the same lead time rose to 19 per cent, compared to 12 per cent the previous year.
Sustainability considerations are also increasingly influencing booking choice, as more than 50 per cent of bookings were made at properties featuring smart lighting, bike storage and the absence of single-use plastics.
Commenting on the report findings, Ariosi chief operating officer Alistair Murray, said: “Flexibility will be the guiding principle heading into 2026 to accommodate ongoing wider geopolitical and geoeconomic changes and influences.
“Whilst there is significant opportunity for growth, buoyed by an increased appetite for the sector from investors and corporate relocation demand, operators also need to sustain their own investment across technology, reporting and data to ensure they are ready to capture and fulfil that demand in the months to come,” he added.