Investment in aparthotels or serviced apartments in Europe reached a total of approximately €1.2 billionin 2025, representing around 5% of total hotel investment, according to a report by Savills. Spainaccounted for 23% of this activity, with €275 million transacted in this segment.
The analysis points to a process of structural reconfiguration of the sector across the continent, driven by greater regulatory control over short-term rentals, increased demand for medium- and long-term stays, and the existence of growth opportunities at an institutional level.
Savills has studied 26 European cities and concludes that serviced apartments continue to account for a limited share of the overall accommodation supply. They currently account for 8% of the stock, although they represent 12% of the development pipeline, suggesting a gradual increase in their market presence.
In operational terms, the segment continues to perform strongly. In 2025, aparthotels recorded an average occupancy rate of 79% and an average daily rate of €136, according to CoStar data. Since 2019, demand has grown at a compound annual rate of 5.9%, compared to 1% for the hotel sector as a whole.
Savills attributes this trend to factors such as longer stays, flexible working arrangements and Europe’s position as the world’s leading tourist destination. In 2025, the continent welcomed around 800 million international tourists, with forecasts of sustained growth in the medium term driven by intra-European travel and improved connectivity with the Asia-Pacific region.
The report also highlights the progress made in the consolidation and professionalisation of the sector. Operators with a local presence are adopting cross-border expansion strategies backed by institutional capital, in a market that remains fragmented and, in many cases, dominated by smaller players. This context favours the development of platforms with greater scale and operational capacity.
Furthermore, tighter regulations in various European cities are altering the structure of demand. Measures such as limits on the number of nights, licensing systems and increased administrative scrutiny are reducing the viability of informal holiday rentals. In Amsterdam, overnight stays in this type of accommodation fell by around 44% between 2019 and 2024, with a further reduction expected following the introduction in 2026 of a 15-night limit in central districts. Other cities such as Edinburgh and Paris have adopted similar measures.
According to Savills, this context does not reduce tourist demand, but rather redirects it towards regulated formats, which favours aparthotels, which are recording higher occupancy levels and more stable rates. In this scenario, the segment is establishing itself as an attractive option for investors seeking recurring income with growth potential within the European hotel market.
