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Tracking the Rise of Aparthotels


What is an Aparthotel?

As the short-term rental market has exploded over the past decade, we’ve witnessed a massive diversification in what has traditionally been considered a vacation rental. From beachside bungalows to tiny homes, RVs, castles, and couches, hosts around the world have been getting creative. However, above all others, we’ve seen one listing type experience exponential growth: Aparthotels. Cities from Beijing to Tel Aviv and Zurich have responded to consumer demands and begun listing aparthotels en masse. The listing type that was virtually unknown five years ago has now seen over a 1,000% growth in supply count in cities around the world. In order to track the rise of aparthotels, AllTheRooms Analytics has studied vacation rental data from 30 of the world’s most prominent metropolitan cities.


Before analyzing the data, let’s establish a clear definition of an aparthotel. As the name suggests, aparthotels (which can also be referred to as ‘serviced apartments’) strive to combine the best aspects of apartments and hotels in one convenient accommodation genre. Noticing the evolving trends in traveler tastes — namely the desire to have the space, freedom, and flexibility of a vacation rental without sacrificing the amenities of traditional hotels — hosts created the aparthotel.


Based on AllTheRooms Analytics vacation rental data, here are some of the defining characteristics of a modern aparthotel.

  • More spacious than traditional hotel rooms
  • Usually contain a kitchenette with cooking accessories
  • Room service, laundry, concierge staff, telephone with 24/7 front-desk service, and other hotel-like amenities
  • Minimum once-per-week cleaning
  • Common areas with space to work, rest, exercise, and socialize
  • Neighborhood-like ambiance that fares better than traditional hotels
  • Length of stay can vary from a few nights to several months. With no real minimum or maximum stays, aparthotels can appeal to both short-term and long-term renters.


Photo by Rustic Vegan

Which Demographic do Aparthotels Appeal to?

Aparthotels initially emerged as a new accommodation category for anyone looking to live — rather than stay — in a vacation home for an extended period of time. Aparthotel companies balance their marketing efforts towards both holiday travelers and business travelers. The concept of blending a home and a hotel is intriguing for anyone on the road, but after Analyzing the Growth of Business-Ready Accommodations, aparthotels may ultimately be more suited to business travelers who are constantly on the move.


Companies at the Forefront

Many companies around the world are investing in the aparthotel concept. In the U.K, Locke aparthotels lead the industry with projects in London, Manchester, and Edinburgh. Staycity has locations throughout the U.K and Europe including Venice, Paris, Marseille, and Liverpool. Adagio — which primarily focuses on families — has aparthotels scattered around the world as far as São Paulo, the UAE, and Casablanca. Visit these sites to learn more about what an aparthotel is, who is using them, and where they can be found.


While the primary efforts of many aparthotel companies are focused on acquiring direct bookings, we’ve also seen a wave of listings on Airbnb and other third-party OTA sites. Based on data from Airbnb, here are the locations around the world experiencing the most growth in the aparthotel sector.


Locations Experiencing the Most Growth

1) Beijing – 5,912%

In the spring of 2016, Beijing — a city with a population of over 21 million — advertised just 16 aparthotels on Airbnb. Because 2016 was very much the early stages of the listing type, 16 properties wasn’t entirely out of the norm. At that point, London, Singapore, Moscow, Rio de Janeiro, and Istanbul were the only cities in the world with more than 100 aparthotels on Airbnb. As of the first quarter in 2019, Beijing boasted 962 aparthotels.


2) Hong Kong – 3,200%

Hong Kong comes in second with an equally impressive growth rate. With only 9 properties in 2016, Hong Kong now has nearly 300 aparthotels in the city.

Photo by Florian Wehde

3) Shanghai – 3,158%

Currently with over 2,300 aparthotel listings on Airbnb, Shanghai holds the throne for the most listings in the world. Coming from just 72 properties in 2016, that’s a 3,158% increase. After China’s Industry Plus initiative launched — the program aiming to promote the sharing economy and minimize regulations — it comes as little surprise that the country lays claim to the top 3 spots on our list.


4) Sydney – 2,490%

The first non-Asian city on our list is Sydney, a city that consistently ranks as one of the best for international business. Currently, there are still under 300 total aparthotels in the city on Airbnb, but that’s a far cry from it’s 2016 number of just 10 listings.


5) Austin – 2,114%

The first North American destination on our list is Austin. The raw number of aparthotels here isn’t breathtaking (155), but considering the city’s modest population puts things in better perspective. Austin has about 6,129 residents per aparthotel. In contrast, New York City has over 18,000, and even the aforementioned Beijing has over 21,800 residents per listed aparthotel.


6) Berlin – 1,892%

The European city experiencing the most growth in the aparthotel sector is Berlin with 1,892% over the past three years. With only 259 active listings, it’s still a relatively young market with significant room for growth.


7) Melbourne  – 1,788%

In recent years, Australia’s second-largest city (and second largest-vacation rental market) is giving Sydney a run for its money. Melbourne has nearly twice as many aparthotels as Sydney and shows no sign of stopping its expansion.


8) Osaka – 1,470%

If it weren’t for Japan’s massive regulations overhaul in the second quarter of 2018, Osaka would have ranked second on this list. By June of 2018, Osaka had over 900 listed aparthotels — a 3,658% increase from the 24 properties it had two years prior. After losing 56% of its properties in a matter of months, Osaka’s (and all of Japan’s) rental market is back on the rise.


9) Dubai – 1,463%

Although 9th on the growth list, Dubai’s 1,016 aparthotels are good enough for 6th place in terms of overall quantity. As the only city on our list located in the Middle East, it’s a clear regional standout in terms of vacation rental market profitability.


10) Dublin – 1,218%

Ireland’s capital has also benefited from the aparthotel trend that really originated in the U.K. With over 1,200% growth, Dublin currently boasts one listing per every 3,700 residents —  enough for second on the list of people-per-listing (Dubai being first).


11) London – 1,043%

With more than 1,800 aparthotels in the city, London only falls behind Shanghai in terms of sheer volume. Despite the 90-day rule and other regulations in the capital, London’s vacation rental market is alive and well. Over 1,000% growth in the aparthotel sector should be a signal for hosts, property managers, and real estate investors around the world that London remains a key market player.   


Tracking the Rise of Aparthotels
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