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London Serviced Apartments: A Growing Trend Among Modern Travellers

Kane William by Kane William
September 5, 2025
Reading Time: 8 mins read
Furnished Apartments
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Serviced apartments are the flavour of the season in London’s hospitality sector. Do you agree? You just might, in light of the recent trends which indicate a clear increase in bookings for these apartments and their growing predominance in the corporate housing and leisure categories alike. This article attempts to examine this trend closely while aiming to uncover facts that tie into its mushrooming association with corporate housing growth in the UK capital. 

Mapping Serviced Apartment Growth in London-Key Facts

Serviced apartment bookings are reportedly increasing in London, with higher occupancy rates that are outstripping several major cities in Europe. London is dominating the UK serviced apartment market while contributing a sizable chunk of total supply. This growth may be majorly driven by factors like a tourism revival, increasing corporate travel and the ongoing visibility and appeal of serviced apartments as a preferred choice in terms of accommodation. 

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Here are some facts and figures that illustrate these aspects: 

  • Business Travel News Europe reports highlights a notable rise in occupancy, with accommodation providers in London offering serviced apartments reaching 81.5% between April and June — up from 77.8% in the previous quarter.
  • London is still the top market for UK serviced apartments, counting its share in total supply and its achievement of the highest average daily rates.
  • London’s serviced apartment sector is projected to witness further growth, with 21% supply increases anticipated by 2028 as per CasaCity reports.
  • In the corporate housing category, 23% of businesses have agreements with serviced accommodation providers and brands. 
  • The Global Serviced Apartment Industry Report states how 52% of corporates and 60% of TMCs are increasingly using serviced apartments for relocation since 2020. 
  • 68% of operators are planning to open more apartments in existing and high-demand locations across the city, clearly showing positive growth in the category. 
  • 47% of corporates now use specialist agents for serviced apartment bookings, which is a major increase in comparison to earlier years as per Business Travel News Europe. 
  • The UK corporate housing industry alone is now valued at £1.3 billion in 2025, as per IBIS World reports. 

What Are Some Other Key Trends in the London Serviced Apartment Space? 

The growth in bookings of serviced apartments in London is fuelled not just by business travellers, but those in the leisure category as well. One of the biggest talking points of these apartments is their home away from home experience. This appeals immensely to people looking for more privacy during their trip and also those planning for extended stays in London, with more control over their living environments. That’s not all; corporate demand has gone up considerably for serviced apartments in London with business travellers looking for alternatives to regular hotels. These units are now at par and even surpassing hotels based on performance metrics such as ADR, RevPAR and occupancy. 

Serviced apartments stand out for their kitchen facilities and bigger spaces, while being more cost-effective in comparison to hotels. They generally have higher ADR (average daily rates) and occupancy rates than hotels. 45% of serviced apartment guests in London are business travellers according to Resharmonics reports, followed by 27% of tourists and 23% of relocating professionals. Several companies in and out of London have increased usage of these units for relocation, while ESG and sustainability are also becoming more important for travellers and their employers. 

Why London Serviced Apartments Are Making More Sense to Corporates

Serviced apartments in London are making more sense to corporates due to the following reasons: 

  • GSAIR reports (2023) indicated how 73.68% of corporates used these apartments for business travel purposes. A major reason was their multiple benefits like flexibility, amenities and cost-effectiveness. 
  • Corporates also appreciate how they meet both short-term and extended stay needs of guests. 
  • More companies find serviced apartments cost-effective and practical while accommodating employees for relocation or extended stays. 
  • More apartments are joining the eco-friendly and sustainable movement in the sector, which is a big moot point for corporate guests. 
  • They are also adapting to new-age guest preferences with innovations like smart temperature and lighting controls in rooms, contactless check-ins and checkouts, digital experiences, etc. 
  • There is more value for money offered by these apartments, particularly for extended stays in comparison to hotels. 
  • Additional and flexible living space is available at these units along with varying configurations, room sizes and convenient lease terms. 
  • These apartments offer a more residential feel with great amenities like living zones, kitchens, laundry facilities, housekeeping, Wi-Fi, flat-screen televisions, appliances and more. 
  • Many of them come with dedicated business-friendly amenities like high-speed internet, work desks or workstations, meeting rooms, conferencing facilities, dry cleaning, etc. 
  • Most serviced apartments in London are situated in prime areas that are well-connected to transportation, amenities, business districts and cultural landmarks. 

What stands out is the flexibility with which serviced apartments successfully tackle complex and hybrid living models and even remote work arrangements. They are fast becoming more attractive to digital nomads, remote workers, those relocating with/without families and other regular business travellers in London as a result. 

Business Travel Has Changed In Recent Years

Business travel has evolved considerably over the years and this has made serviced apartments a more coveted proposition for business and leisure travellers alike. Apartment providers in London are swiftly adapting to the newest trends where business guests do not want to share apartments anymore. They also want separate work desks and dining tables to support productive work during their stays. Co-working zones are also in high demand on account of more jobs involving remote working models. In fact, the UK has also been voted as the second most-attractive global international investment destination as per PwC reports. 

Higher investment from global entities is expected to subsequently fuel a corporate housing boom in the coming years in London as a result. It could well benefit serviced apartments in terms of overall growth. Average stay lengths have been fluctuating in recent years, although London is more geared towards stays of 3-7 nights on average, with some staying for 30+ nights. The lines are also blurring between residential and hotel categories, with several aparthotel brands coming up in London. Many of these buildings now come with communal lounges and hangout spaces along with wellness-oriented amenities, F&B facilities and co-working provisions. 

How Technology Is Making a Difference

It goes without saying that technology has streamlined operations and transformed guest experiences considerably across the London serviced apartment space. For starters, the booking process has become easier with dedicated platforms, real-time data and cloud-based third-party PMS among other systems. Additionally, more providers are using AI-based PMS solutions to personalise guest engagement and build custom guest profiles. Customers can now use dedicated apps to access various services and making bookings during their stays. 

Digital keys and smart locks for contactless and swift check-ins and check-outs is another feature that’s gaining more popularity nowadays. Customers also appreciate smart temperature and lighting controls along with voice assistants in their rooms. Sustainability, as mentioned earlier, is another big draw. For example, TheSqua.re is a provider offering EcoGrade or a sustainability score that guests can use to make informed decisions on the environment-friendliness quotient of their apartments. 

Sectoral Developments that Require a Closer Understanding

Here are some other key sectoral developments that are relevant to serviced apartments in London as a category. 

  • Building licensing and planning consents continue to be a major point of concern for the sector. Universal licensing categories are the need of the hour as per industry experts, with tighter lengths on minimum stay durations for residential buildings. 
  • Developers and operators have been agile in syncing their offerings based on evolving guest needs and residents. This explains the rise of short stay rental licenses in the city and beyond. 
  • Extended stays have become one of the biggest trends for serviced apartments in London. Separate working, living and working areas make it more convenient for guests to stay just as they would at home. 
  • Hosting other people is one of the key advantages that guests appreciate along with leisure activities, Wi-Fi, 24/7 front desks/receptions, etc. Lifestyle shifts also favour the move towards extended stays. 
  • Remote working and digital nomadism have created higher demand for extended stay apartments with more privacy and flexibility. 
  • This group of travellers is vocal about the limitations of traditional hotel stays, including higher costs, negligible cooking amenities, small space, less privacy and limited areas for connecting with or hosting colleagues and friends. 
  • Longer stays in hotels may also be costlier due to everyday dining out expenses and other add-ons like housekeeping, laundry, Wi-Fi, etc. (which are mostly included in serviced apartment rates).

London Serviced Apartments- The Next Big Hospitality Category 

As part of a major lifestyle shift and changing attitudes to work, Bleisure (business + leisure), personalised experiences and comfort, the industry has undergone a massive change. This has been more pronounced in the post-COVID era, with more people desiring spacious and large units with no sharing, higher privacy, flexible and extendable leases and home-like amenities. This need has remained intact till date in London, especially if you take corporate housing into account. 

More guests today want a customised, comfortable and convenient stay in a prime London location, complete with self-catering and hotel-like services. They also want this at a more affordable and practical rate for relocation or extended stays with higher space and privacy. It’s a combination that makes serviced apartments hard to beat in the UK hospitality market. In fact, it seems these apartments are well on their way towards becoming the next big category in London and several other parts of the world.

Kane William

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