Why EQTY is Expanding into Serviced Operations: Key drivers behind our focus

The hospitality industry is transforming. As post-pandemic lifestyles evolve, demand is surging for flexible, high-quality accommodations that offer both comfort and convenience. Today’s travelers—corporate professionals, digital nomads, and entrepreneurs—seek seamless, experience-driven stays that blend work, leisure, and community.

“At EQTY CAPITAL , we see hospitality as a strategic expansion and an investment opportunity across Portugal and Europe. The serviced operations and branded residences sector is experiencing consistent growth, providing resilient revenue streams, asset appreciation, and strong market demand”, explains Rob Hann , Head of Development.

Market Trends and Growth Projections

The hospitality and serviced operations sector is experiencing accelerated growth. In 2022, the global serviced apartment market was valued at $34.75 billion and is projected to grow at a 7.2% CAGR through 2030.

Key drivers of this expansion include:

• Corporate Executives & Expats: Companies are adopting hybrid work models, increasing demand for flexible, long-stay accommodations.
• Digital Nomads & Entrepreneurs: With over 35 million digital nomads globally, the need for premium, service-oriented living spaces is on the rise.
• Luxury and Experience-Driven Stays: Hospitality is shifting toward personalized, sustainable, and well-being-focused experiences.

According to a 2023 Global Serviced Apartment Industry Report (GSAIR), 81% of corporate travelers now prefer serviced apartments over hotels, citing convenience, privacy, and home-like environments as key factors.

The Evolution of Demand in a Post-Pandemic World

“The pandemic accelerated shifts in work and lifestyle models, making long-term flexible stays one of the most promising real estate sectors”, notes Rob.

• Hybrid Work & “Workcations”: 74% of employees now expect flexibility in their work locations, fueling demand for multi-functional living spaces.
• Changing Business Travel Trends: 89% of business travelers now combine work and leisure, requiring hospitality offerings that support extended stays.
• Rising Demand for Community & Well-Being: Guests prioritize authenticity, sustainability, and connectivity, boosting the appeal of boutique and lifestyle hospitality brands.

Why EQTY Is Investing in Hospitality

EQTY’s expansion into hospitality and serviced accommodations is backed by clear market trends and the potential for sustainable growth.

Serviced Operations as an Investment Opportunity

Investments in hospitality and serviced operations provide financial and strategic advantages, including:

1. Recurring Revenue & Profitability

• Unlike traditional real estate, where income relies on fixed rental agreements, hospitality provides diversified revenue streams.
• Serviced operations achieve, on average 20-30% higher rates than traditional residential rental options.

2. Portfolio Diversification & Market Resilience

• Serviced accommodations attract a broad customer base, including tourists, executives, and long-term residents, etc.
• The sector has proven more resilient than traditional hotels, recovering faster post-pandemic.
• Economic downturns often increase demand for flexible, serviced rentals, offering protection against volatility.

3. Asset Appreciation & Capital Expansion

• Properties that integrate hospitality and serviced elements see 10-30% higher valuation increases than conventional real estate.
• These offerings create differentiated, experience-driven spaces, increasing perceived value and long-term investor appeal.
• Professional hospitality management optimizes operational efficiency, maximizing returns for investors.

The Future of Hospitality: Experience, Sustainability & Smart Living

“We believe hospitality goes beyond accommodation. The industry is shifting towards experience-driven, tech-integrated, and wellness-focused living spaces. Our vision is to develop properties that redefine modern hospitality, offering:”

• High-end design & comfort
• Strategically located assets
• Sustainable architecture & smart technology, integrating prop-tech solutions
• Personalized, concierge-level services

“EQTY’s investment in hospitality is a strategic response to a rapidly growing sector and evolving market needs. Expanding into serviced operations and branded residences is not only unlocking substantial investment potential but also enhancing customer experiences. As traveler preferences shift and demand for flexible accommodations rises, hospitality is one of the most attractive real estate investment sectors today”.

For more detailed insights and updates about Portugal and the Investment landscape, subscribe to our LinkedIn newsletter HERE or CONTACT US.

Latest Articles ??

The New Setúbal: A Lifestyle Haven Just Outside Lisbon

The Future of Senior Independent Living and Wellness: Embracing Innovation, Health, and Community

Unlocking Opportunities: The Benefits of Investing in Funds

Why Portugal is the Future of Tech Investment?

European Real Estate Markets: Navigating Challenges and Opportunities in 2024

Serviced Living: The Future of Flexible Accommodation