Survey finds serviced apartment sector upbeat despite global headwinds

Worldwide: Two-thirds of respondents to Serviced Apartment News’ sentiment survey said they feel positive about company performance, even as global headwinds cloud the wider economy.

SAN distributed the survey to its 14,000 readers globally. Of those that responded, most are seeing signs of recovery though uncertainty around global trade and politics tempers optimism.

Respondents reflected a neutral to slightly cautious stance on the global economy. Sentiment around the global extended stay industry however was largely positive with more than half feeling “somewhat optimistic” about the sector’s future.

Regarding individual business outlook, results showed greater confidence in the ability to perform than in the broader economy. Two-thirds of respondents voted positively, and around 22 per cent within that group opted for “very optimistic”.

Inventory growth and geographical expansion were generally cited as opportunities in the next 12 months. Geopolitical tensions around tariffs and inflation were cited as the biggest challenges, alongside regulatory and legislative policies. 

Other headlines from the survey include:

• Corporate demand has stabilised but growth expectations remain muted. Political and economic uncertainty is highlighted as the biggest barrier to future growth. 

• Tech and the media/creative industries were cited as the joint top demand sources of corporate travel, followed by government/public sector and energy and engineering.

• Direct bookings generally ranked the top most important channel for securing corporate bookings, followed by agents/corporate booking platforms and RMCs. TMCs were ranked as the least important.

• Booking patterns reveal a consistent shift towards last-minute bookings. Other trends include a shorter length of stay and higher demand for flexible cancellation policies. 

• Reliable housekeeping, pricing, and tech advancements such as automated communication ranked as popular in-demand services from serviced apartment clients. 

• Investment appetite is strong with Europe highlighted as the most attractive region, though there are concerns around planning and zoning.

• Generative AI is largely cited as having the most impact on businesses in the last 12 months. Customer service tools such as digital concierges were commonly mentioned, as well as using Gen AI to conduct internal analysis (eg. benchmarking, qualifying leads, identifying trends). 

• Education, cost, and implementation ranked the top three concerns when adopting new technology. Automation and integrated operational systems are cited as the greatest potential for hospitality tech in the future.

Eloise Hanson, editor of SAN, said: “The survey reveals a serviced apartment sector that is tentatively upbeat, with strong confidence in individual business performance despite broader economic uncertainty. Corporate demand has stabilised which will prompt operators to rethink future growth strategies and respond effectively to evolving market demands. The sector’s adoption of technological innovation will be key in maintaining a competitive edge.”

Highlights:

• Two-thirds of respondents feel positive about their company’s performance, despite caution around the global economy.

• Inventory growth and geographic diversification are key focus areas.

• Corporate demand has levelled off with muted growth expectations.

• Direct bookings remain the top priority channel.

• Generative AI and other automation tools are increasingly cited as improving service and supporting business analysis.

• Geopolitical instability, inflation, and regulatory pressures remain the biggest barriers to growth.