Extended Stay Hotels in European Union 2026: Industry Statistics & Trends

The extended stay hotels and serviced apartments industry in the European Union provides fully furnished, self-catering accommodations typically utilized for medium- to long-term residencies. The industry is on a strong upward trajectory as corporate and leisure travel patterns shift permanently toward longer-duration stays, enabling the sector to achieve a high occupancy rate of 79% across Europe in 2025 (source: CoStar via Savills). Total sector transaction volumes reached €1.2 billion in 2025 (source: Savills European Serviced Apartment Report 2026), reflecting intense institutional investor interest. Growth is further accelerated by shifting municipal short-term lodging regulations, whic

Industry snapshot

Key public data points

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What does the Extended Stay Hotels in European Union industry cover?

The extended stay hotels industry comprises properties that blend the amenities of traditional hotels with the autonomy of self-catering apartments. These establishments offer units equipped with complete kitchen facilities, separate living spaces, and dedicated work areas designed to support guests staying for multiple nights or weeks. Unlike conventional lodging, their operating models focus on lower guest turnover, reduced daily housekeeping frequencies, and flexible tier-based pricing.

• •Classified officially under Eurostat's NACE Rev. 2 framework within Section I, Division 55, Class 55.1 ('Hotels and similar accommodation') which explicitly includes suite and apartment hotels, or Class 55.2 ('Holiday and other short-stay accommodation').
• •Units typically feature built-in kitchenettes, laundry access, and high-speed digital infrastructure to cater to modern remote-work requirements.
• •Operations exclude properties leased for permanent residency, which fall under real estate renting activities under NACE Division 68.

Who operates in the industry and how is it structured?

The European extended stay market is structurally diverse, characterized by a mix of regional hospitality platforms and dedicated cross-border brands backed by institutional capital. The inventory represents roughly 8% of the total existing accommodation stock in major European gateway cities, but accounts for a disproportionate 12% of the active development pipeline. Operators increasingly focus on asset-light management and franchise agreements to scale rapidly across national borders.

• •The sector captured a stable average occupancy rate of 79% in 2025, outperforming the broader traditional hotel sector's occupancy of 75% across Europe.
• •The Average Daily Rate (ADR) across European serviced apartments stabilized at €136 in 2025.
• •Institutional transactions within the specialized asset class totaled approximately €1.2 billion in 2025, representing 5% of all hospitality investment volumes.

What drives demand in the industry?

Demand is heavily driven by structural changes in workplace flexibility, corporate relocation programs, and evolving consumer travel preferences across the European Union. Long-stay trips spanning 7 to 12 nights have seen a sustained increase, displacing traditional short-duration weekend stays. Corporate buyers are increasingly shifting multi-week travel programs to serviced apartments to comply with institutional duty of care provisions and corporate cost-transparency targets.

• •Corporate clients and business travelers remain a core pillar of demand, representing 45% of total stays for prominent regional operators in 2025.
• •The average length of stay (ALOS) for corporate travelers reached 5.2 nights in 2025, compared to 2.8 nights for leisure tourists utilizing long-stay brands.
• •The expansion of hybrid employment models has generated incremental demand from digital nomads combining occupational tasks with leisure travel.

Who are the notable companies in the industry?

The European marketplace features intense competition between specialized apartment hotel brands and dedicated extended-stay divisions of multinational public hospitality groups. Companies are engaged in aggressive network expansion to build pan-European brand equity and lock in corporate accounts. Scale and highly replicable digital operating models are the primary vectors of competitive advantage.

• •Aparthotels Adagio, a leading operator in Europe, recorded a record turnover of €339 million in 2025 across its 130-property portfolio spanning three dedicated brand tiers.
• •Accor SA dominates the broader European landscape, leveraging its Midscale & Economy division alongside specialized joint ventures like Adagio to drive regional net unit growth.
• •Marriott International, Inc. captures long-stay demand via localized operations of its Residence Inn by Marriott and Element Hotels brands.
• •IHG Hotels & Resorts (InterContinental Hotels Group PLC) actively expands its extended-stay footprints in major European commercial hubs via brands like Staybridge Suites.

What are the recent trends and outlook?

The industry is experiencing an influx of institutional capital attracted by its superior operating margins and resilient cash flows relative to traditional full-service hotels. ESG alignment has transitioned from a compliance requirement to a primary operational objective, with brands aggressively pursuing third-party green certifications to win institutional business. Forward-looking indicators point to sustained mid-single-digit demand growth over the coming years.

• •Investor appetite for the European serviced apartment and extended stay asset class increased by 22% going into 2026, according to real estate capital surveys.
• •Aparthotels Adagio expanded its environmental footprint by increasing its portfolio of Green Key-certified properties to 78 sites as of January 2026.
• •Industry pipelines remain robust, with major brands securing multi-room additions through strategic developer partnerships, such as Adagio's deal with the Sergic Group.

How is the industry regulated?

The regulatory environment across the European Union is tightening dramatically, turning into a massive tailwind for professionalized extended-stay operators. Municipalities are actively passing strict ordinances to curb informal peer-to-peer short-term rentals in response to urban housing shortages. This creates a direct reallocation of demand to fully compliant, licensed commercial hospitality formats.

• •In Paris, national restrictions tightened under the 2025 Le Meur Law, which enforces a strict limit of 90 rental nights per year on primary residences with non-compliance fines up to €100,000.
• •In Amsterdam, local regulations starting April 2026 cap short-term peer-to-peer rentals at just 15 nights per year in central municipal districts, down from the previous 30-night limit.
• •Historical EU data indicates previous phases of municipal rental caps successfully reduced informal short-term guest nights by approximately 44% in targeted cities, redirecting travelers to commercial brands.

Government, statistical and trade sources used for this Claight analysis.

• Eurostat NACE Rev. 2 Framework ·
• Savills European Serviced Apartment Report 2026 ·
• CoStar Hospitality Database 2025 ·
• Aparthotels Adagio Full Year Financial Results Release 2026 ·
• Accor SA Full-Year 2025 Financial Report