European serviced apartments are increasingly becoming an institutionally attractive asset class, according to the latest market report from agent Savills.
The sector attracted EUR1.2 billion in 2025, as mainstream investors start to take a closer look at a niche in the accommodation space that has long attracted early stage investors, impressed by its performance metrics. Research by Savills notes that there has been annual demand growth of 5.9% since 2019, with the sector receiving an additional tailwind as city regulators bear down on the short term rental sector.
A Combination of Positive Factors
“Growth in demand is being driven by a combination of longer travel durations, increased flexibility in working patterns and Europe’s continued position as the world’s largest tourism region,” explained Thomas Emanuel, head of hospitality thought leadership EMEA at Savills.
Savills says its findings point to a sector “undergoing structural repositioning” while benefiting from regulatory changes and long term travel demand changes. Across Europe, the sector remains under-represented, compared to the broader accommodation marketplace. With 26 European gateway cities reviewed, Savills found serviced apartments account for 8% of existing stock, and 12% of the development pipeline.
Richard Dawes, director of hotel capital markets at Savills, said capital allocations are now appreciating the defensive benefits of the sector: “The investment case for serviced apartments is no longer solely about demand growth; it is increasingly about market structure. Regulation is accelerating a shift away from informal supply, while fragmentation across Europe creates clear opportunities for scale, consolidation and professionalisation.”
Operationally, serviced apartments achieved an occupancy of 79%, with an average day rate of EUR136. While the marketplace is highly fragmented, there are operators now spanning across Europe, such as Staycity, Adagio, Numa and Locke. Established international hotel brand groups are also expanding: IHG’s Staybridge Suites, Residence Inn from Marriott and Hilton’s Home2 Suites are making headway across the continent.
Irish group Staycity is one of the fastest growing dedicated serviced apartment providers, operating two brands, Staycity and its premium offering, Wilde. Currently, it is developing Staycity projects in Belfast and Warsaw, with further schemes signed in London, Munich and Vienna.
Brands Build Presence
The company’s Wilde brand is about to open a 120 unit development in Amsterdam, on the lower floors of a new 21 storey block in the city. Further schemes are under construction in Bordeaux and Porto, while signings in the pipeline include two sites in London, Dublin and Oxford. And a recent addition to the pipeline is the group’s second site in Berlin, with a 222 apartment development for the Wilde brand, expected to open in autumn 2027.
Numa Group is also growing its serviced apartment portfolio across Europe, aided by the acquisition of the Native business in the UK. As a result, it now has a strong pipeline including two Native sites in Edinburgh, due to open later in 2026, along with two sites in Berlin. Further ahead, pipeline signings include Numa Cologne, due to launch in 2028.
