The Airbnb Replacement Is Starting To Look Like A Hotel With A Kitchen

The appeal that pushed millions of people toward short-term rentals grew from a practical frustration with conventional hotels, especially on trips that lasted longer than a weekend. Guests looking for more space, somewhere to cook, and a neighborhood setting increasingly found those features in apartments listed through platforms such as Airbnb. Global real estate advisory firm Savills says digital accommodation platforms helped normalize demand for greater flexibility, more space, and a residential experience, particularly for longer stays.

Demand for apartment-style accommodations has remained strong as European cities have tightened rules around short-term rentals. Another part of the hospitality industry has been developing around many of the same preferences. Serviced apartments and aparthotels place kitchens and living space inside professionally managed properties, while operators such as Staycity also offer reception desks, fitness rooms, laundry facilities, and discounted longer-stay rates. The format has existed for years, and operators now market it directly around the combination of apartment living and hotel services.

Short-Term Rental Rules Are Making More Room For Aparthotels

Amsterdam normally limits holiday rentals of a primary residence to 30 nights per calendar year, while eight neighborhoods in Centrum and De Pijp moved to a 15-night annual limit from April 2026. Paris caps primary-residence vacation rentals at 90 days per year and requires additional authorization for properties that are not a host’s main residence. At the EU level, Regulation 2024/1028 began applying on May 20, 2026, establishing rules for registration and data sharing between short-term rental platforms and public authorities.

As those restrictions reduce the viability of some informal rentals, Savills notes that demand is being redirected toward professionally managed formats that comply with local planning requirements. Its 2026 European Serviced Apartments report points to night caps, licensing systems, zoning controls, and stricter enforcement as factors reducing informal supply, particularly entire-home listings in central locations.

Richard Dawes, director of hotel capital markets at Savills, described regulation as part of a broader change in the sector. “Regulation is accelerating a shift away from informal supply,” he said, while also pointing to opportunities for scale, consolidation, and professionalization across Europe.

Investors Are Betting On The Space Between Airbnb And Hotels

European serviced apartment transactions reached approximately €1.2 billion ($1.36 billion) in 2025, according to Savills, equal to about 5% of total hospitality investment. Across the 26 European gateway cities analyzed in its report, serviced apartments represented 8% of existing accommodation stock and 12% of the development pipeline. The same research counted 86,911 existing rooms and 12,533 rooms under construction or in advanced planning. Savills also reported that investor appetite for serviced apartments increased 22% in 2026. Its full Spotlight report puts underlying demand growth at a compound annual rate of 5.9% since 2019, compared with 1.1% across the wider hotel sector.

HVS analyzed around 13,000 serviced apartment units across Europe for its 2026 sector report and found occupancy at about 80% across markets in 2025. Average rates softened across most markets, however, pulling down revenue per available room. HVS identified roughly 19,800 branded rooms expected to enter operation over the next five years. Staycity had the largest pipeline at about 5,000 units, followed by Limehome with around 2,200. Marriott held the third-largest pipeline, with Residence Inn accounting for many planned openings. HVS also reported that Home2 Suites by Hilton opened its first European property in Dublin in May 2026, with a second property planned at Amsterdam’s Schiphol Airport for 2028.

HVS attributes part of the aparthotel model’s operating rationale to longer average stays, which reduce three major cost drivers: marketing, cleaning, and staffing. Development costs differ from conventional hotels since serviced apartments generally include kitchenettes and higher-specification furniture, fixtures, and equipment. Those requirements raise some costs, although HVS found that certain office conversions work efficiently when existing structures suit apartment layouts.

What Travelers Actually Get From The Apartment-Hotel Model

Staycity describes its properties as “half apartment, half hotel” and lists fully equipped kitchens, laundry facilities, work areas, fitness rooms, and 24-hour reception among its services, although facilities vary by property. The company also markets its aparthotels for both short and long stays and offers lower rates for longer bookings, including discounts beginning at seven nights.

Airbnb said hosts welcomed more than 114 million guest arrivals across the EU in 2025. The company has argued against broad restrictions and says short-term rentals provide flexible housing for families, workers, students, people traveling for medical care, and guests attending major events. Airbnb has also supported increased data sharing under the EU framework while calling for targeted local rules.

Regulation 2024/1028 excludes hotels and similar accommodations from its definition of a short-term rental “unit,” specifically naming resort hotels, suite or apartment hotels, motels, and hostels. A recital to the regulation says those accommodation types fall outside the rules because their data is generally available and well-documented.