

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.
What I’m seeing on the ground is clear: demand for serviced apartments, or “hotel apartments” in Dubai and Abu 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 in large groups - siblings, children, sometimes three generations together. They want space, a kitchen, and a washing machine - not just a place to sleep, but affording the comforts of home.
Business travellers: Many stay for longer periods (weeks or months). They prefer apartments where they can cook, do laundry, and feel settled while working.
Relocating expats: These guests often use serviced apartments as temporary housing while searching for a permanent home. It provides flexibility and stability during a transition.
Hotels will always attract short-term tourists, but for longer stays, serviced apartments often win out.
Takeaway: Know your audience. Families want self-service and space; business travellers need flexibility; expats want temporary comfort. Tailor messaging and offers accordingly.
Holiday homes on the rise
One notable trend is the growth of holiday homes. These are not full villas but apartments managed across different locations.
Instead of dozens of units in one building, operators spread units across the city - a marina view here, a downtown loft there. Variety becomes a new form of luxury. This approach competes directly with hotel apartments, so operators must think in terms of portfolio diversity: different layouts, neighborhoods, and rate flexibility. Operators offering variety tend to attract more bookings.
OTAs vs direct bookings: a balancing act
In the UAE, many operators still use OTAs for visibility. Different OTA platforms dominate in different markets, so being present on multiple channels broadens reach.
Some large corporations still secure rates via traditional contracts, while smaller businesses and individuals book online. Operators need strategies for both channels.
OTAs act like billboards on a global stage, but the long-term goal should be converting those one-time guests into loyal repeat bookers. The smart operators use booking engines, guest portals, and loyalty tools to drive repeat business directly.
Takeaway: Don’t view OTAs as the enemy - use them for reach, but build systems (booking engine, loyalty, guest portal) to capture direct repeat business.
Tech that powers growth in UAE serviced apartments
The UAE market is highly digital. Things like contactless check-in, digital locks, online payments, even crypto acceptance are already being adopted.
Since many serviced apartments and holiday homes operate with lean teams, automation becomes essential. AI chatbots, online guest communication, and enterprise PMS tools let operators do more with fewer staff while maintaining service standards.
A robust PMS is central: one interface to manage multiple properties, define access levels, and integrate with partners. Such systems don’t just look elegant; they bring control, efficiency, and scalability.
Tip: Focus on the digital features that reduce friction and save staff time - contactless check-in, payments, integrated PMS, etc.
Dynamic pricing: planning like a pro
If a serviced apartment operator in the UAE isn’t using dynamic pricing, they’re leaving revenue on the table.
Dynamic pricing tools allow operators to plan rates across seasons, weekends, events, and automatically adjust based on demand. When bookings dip, rates fall; when demand surges, rates rise. And via an integrated channel manager, they can optimize yield across all distribution channels.
Takeaway: Think long term. Use dynamic pricing to set seasonal rates, weekend premiums, and event peaks ahead of time, and allow the system to adjust automatically.
What’s next?
Looking ahead, three major trends are shaping the sector:
More contactless experiences - Guests will expect digital-first features like online payments, digital locks, and self check-in/out, eliminating queues and friction.
Growth in alternative payments - Some UAE operators already accept cryptocurrency. As digital currency adoption increases, operators should be ready to support guest preferred payment methods.
AI everywhere - From chatbots to AI-augmented guest support, operators will look for ways to reduce manual work. This isn’t about replacing staff but enabling lean teams to operate more efficiently and focus on delivering excellent guest experiences.
At its core, serviced apartments in the UAE are thriving. The growth is driven by families, business travellers, and expats, while holiday homes and digital operations are reshaping the landscape. Operators who embrace variety, dynamic pricing, and tech-driven guest experiences - and who future-proof with automation, new payment options, and self-service technologies - will lead the way.
