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Working in hospitality sales in the UAE gives me a front-row seat to one of the most dynamic corners of the industry. Market forecasts back this up, with the serviced apartment, aparthotel, and co-living sector expected to grow 11.2% annually through 2030, reaching about USD 1.82 billion, according to Grand View research.
What I’m seeing on the ground is clear: demand for serviced apartments, or ‘hotel apartments’ in Dubai and Abi Dhabi is strong, but the guest profile is shifting, competition is heating up, and technology is no longer optional.
The big three: Families, expats, and business travellers
Serviced apartments in the UAE appeal to a wide mix of travellers, but three groups make up the core demand:
- GCC families: They often travel with big groups; siblings, children, sometimes three generations together. They don’t just want a place to sleep, they want space, a kitchen, and a washing machine. In short, the comforts of home.
- Business travellers: Most are here for longer stays, sometimes weeks, sometimes months. They don’t want to live off hotel buffets. A serviced apartment lets them cook, do laundry, and feel settled while working hard. Want to explored this shift in more depth? Check out Business travel rewritten: The rise of serviced and extended stay, where we unpack how changing traveller expectations are reshaping hospitality.
- Relocating expats: Many book serviced apartments as a temporary base while searching for a permanent home. It’s flexible, practical, and less disruptive for families making the move.
Hotels will always attract short-term tourists, but for longer stays, serviced apartments are often the better fit.
Takeaway: Know your audience. Families want space and self-service, business travellers want flexibility, and expats want temporary comfort. Tailoring offers and communications to each group can make all the difference.
Holiday homes on the rise in the UAE
One big trend I’m watching closely is the rise of holiday homes. These aren’t entire villas with gardens; they’re apartments managed across different locations.
Instead of 20 apartments in one tower, operators scatter them across the city, a marina view here, a downtown loft there. Variety is the new luxury. It’s a strong competitor to hotel apartments, and operators need to think carefully about how they diversify to stay competitive.
Tip: Think portfolio, not property. Competing with holiday homes means offering variety, whether that’s different apartment layouts, neighbourhoods, or flexible rates. Operators with more options keep more bookings.
OTAs vs direct bookings: A balancing act
Here’s where the UAE differs from some other markets. While operators elsewhere talk about cutting OTA costs, here many still embrace OTAs for visibility. Different OTAs dominate in different markets, so being on multiple platforms gives operators broader reach.
Some multinational companies still prefer traditional corporate agreements with agreed rates, while smaller businesses and individual travellers are more likely to book online. Operators need strategies for both. Want the bigger picture? Check out our blog on Urban shift: six trends reshaping corporate travel and serviced apartments.
OTAs still have their place, think of them as billboards on the global stage, but the smart play is turning those one-time stays into loyal, repeat guests. That said, the long game is still direct bookings. Once a guest has stayed once or twice, operators want to turn them into repeat customers. The smartest operators use booking engines, guest portals, and loyalty tools to make that happen.
Takeaway: Don’t choose between them, use both strategically. OTAs give visibility, but your booking engine, guest portal, and loyalty tools should be designed to capture repeat business directly.
Tech that powers growth in UAE serviced apartments
This market is obsessed with digital, and for good reason. Contactless check-in, digital locks, online payments, even crypto acceptance, it’s all happening already.
And because many serviced apartments and holiday homes run lean teams, automation isn’t just nice to have, it’s essential. AI chatbots, online guest communication, and enterprise-level PMS tools help operators do more with fewer staff, while still delivering excellent service.
The right PMS pulls everything under one umbrella, one screen to manage multiple properties, set access levels, and integrate with partners. It’s not just a pretty interface; it delivers control, efficiency, and scalability.
Tip: Invest in digital-first operations. Contactless check-in, online payments, and integrated PMS tools aren’t perks anymore; they’re expectations. Start with the features that save staff time and reduce guest friction.
Dynamic pricing: Planning like a pro
If you’re running serviced apartments in the UAE and you’re not using dynamic pricing, you’re leaving money on the table.
With dynamic pricing tools used by serviced apartments in the UAE, operators can plan rates for the whole year including, summer, weekends, big events, and let the system adjust automatically based on demand. If bookings dip, rates drop. If there’s a surge, rates climb. No crystal ball is required and no one needs to stay up all night monitoring reservations as the system does the heavy lifting. And with an integrated channel manager, operators aren’t just connected to OTAs, they’re optimising yield and staying competitive across every channel.
Takeaway: Plan for the year, not the week. Dynamic pricing tools let you set seasonal rates, weekend premiums, and event surges in advance, then adjust automatically. That’s how operators protect margins without babysitting reservations.
What’s next?
Looking ahead, I see three big trends shaping the sector:
More contactless experiences: Guests won’t just want digital-first options; they’ll expect them. From online payments to digital locks and self check-in/out, the demand is for frictionless stays where guests don’t need to wait in line or call reception for access.
Growth in alternative payments: Some hotels in the UAE are already accepting crypto. As digital currencies become more mainstream, operators need to be ready to handle the payment methods their guests prefer.
AI everywhere: From automated chatbots to AI-driven guest support, operators are looking for ways to cut manual work and save time. This isn’t about replacing staff, it’s about helping lean teams run properties more efficiently and focus on delivering great guest experiences. At the end of the day, operators want to do more with less, fewer staff, less manual work, and less friction for guests. That’s exactly what we’re helping them achieve across the region.
Takeaway: Serviced apartments in the UAE are thriving. Families, business travellers, and expats are fuelling growth, while holiday homes and digital-first operations are reshaping the landscape. The operators who embrace variety, dynamic pricing, and tech-driven guest experiences across the UAE, and start future-proofing now with automation, new payment options, and self-service tech will be the ones leading the way.
