Serviced Apartment Operators Expand Across Europe and Middle East
Limehome, Cheval Collection, and Habyt scale operations through commercial conversions, branded residences, and distinct flex-living models.
The short answer
Serviced apartment operators are driving portfolio growth across Europe and the Middle East through commercial asset conversions, flex aparthotels, and branded residential sales. New projects from Limehome, Habyt, and Cheval Collection show varying approaches to scale and institutional partnerships.
“When some of Europe’s leading real estate investors choose us as an operator, we clearly see the direction that Limehome’s model is following. With a fully digital operation and industry-leading GOP levels, we assume we have the degree of reliability that institutional owners look for in a long-term partner.”
The short version
- Limehome partnered with Aroundtown to convert a 19-storey Frankfurt office building into 86 serviced apartments by 2028.
- Cheval Collection is targeting portfolio doubling by expanding in the Middle East with both serviced apartments and branded residences.
- Habyt opened a 319-unit aparthotel in Vienna while repositioning its core brand around properties exceeding 150 units.
Extended-stay and serviced apartment operators are scaling across Europe and the Middle East by acquiring institutional commercial leases, establishing standalone luxury branded residences, and standardising large-scale flex-living properties. Recent project rollouts in Frankfurt, Vienna, and Dubai demonstrate how operators adapt physical footprints, corporate structures, and ownership agreements to capture medium- and long-stay guest demand across regional urban markets.
How are operators repurposing urban office stock in European gateway cities?
Operators are working with institutional landlords to convert central corporate offices into serviced residential accommodation. Serviced Apartment News reported that German operator Limehome signed its first lease agreement with commercial real estate owner Aroundtown during the first half of 2026 [1]. The agreement covers a project named HAT64 Skyline Atlas, situated at Bleichstraße 64-66 in Frankfurt am Main [1].
The property is a 19-storey refurbished office building that will deliver 86 serviced apartment units upon its scheduled completion in 2028 [1]. According to Shachar Elkanati, VP of asset management and development at Aroundtown, serviced apartments serve as a component for adapting centrally located properties to shifting urban space requirements [1]. Limehome operates using a fully digital model, offering institutional landlords long-term commercial leases [1].
What models are luxury operators deploying to expand in the Middle East?
Luxury serviced apartment companies are expanding in Middle Eastern destinations by layering traditional aparthotel services with individually sold branded residential inventory. UK-based hospitality group Cheval Collection aims to double its global footprint over the coming years, positioning the Middle East as a primary expansion territory, according to Skift [2]. The company currently maintains 16 projects across the UK and the Middle East [2].
Cheval established its footprint in the region with Cheval Maison – The Palm Dubai and Cheval Maison – Expo City Dubai [2]. These properties provide furnished units featuring kitchens, living areas, front desk operations, and housekeeping services tailored for medium- to long-stay guests [2]. In April, the group broadened its operational model by introducing Cheval Residences Dubai Islands, which carries an anticipated completion date of 2029 [2]. Unlike the standard serviced apartment framework, units within the Dubai Islands property are sold directly to individual owners who can choose to join a managed rental scheme [2]. Skift reported that S&P expects Dubai demand recovery to occur in 2027 [2].
How are flexible living groups restructuring brand portfolios for scale?
Flexible living operators are dividing large commercial aparthotels from residential coliving assets through dedicated brand tiers. Serviced Apartment News reported that Habyt opened its first aparthotel in Vienna, Austria, situated on Bruno-Marek-Allee in the Nordbahnviertel district [3]. The seven-storey development comprises 319 studio units fitted with kitchens or kitchenettes and work desks, accompanied by communal facilities such as a coworking area, a lounge, a gym, a sauna, and a Hammam [3].
The Vienna opening follows a series of corporate portfolio realignments at Habyt. In May, the group launched Leaze, an asset-light brand dedicated to coliving and shared living arrangements managed via localised operations [3]. This launch came after Habyt sold its Asia-Pacific assets to Mitsubishi Estate and divested its coliving portfolios in Spain, Portugal, and France to three regional operators [3]. Moving forward, the core Habyt flag will focus on larger developments containing over 150 apartments, frequently scaling to properties of roughly 300 units [3].
How do current extended-stay operational models compare?
The operational models implemented by Limehome, Cheval Collection, and Habyt reflect distinct real estate strategies, contract forms, and scale profiles across urban submarkets.
| Operator | Development & Location | Unit Count | Asset Strategy & Completion Target |
|---|---|---|---|
| Limehome | HAT64 Skyline Atlas (Frankfurt, Germany) | 86 units | Office conversion; lease model; completion in 2028 [1] |
| Cheval Collection | Cheval Residences Dubai Islands (Dubai, UAE) | Portfolio growth driver | Branded residential sales with rental pool; completion in 2029 [2] |
| Habyt | Habyt Vienna (Vienna, Austria) | 319 studios | Purpose-built flex aparthotel; open across 7 floors [3] |
As institutional property owners re-evaluate commercial real estate, operators are applying varying contract types—ranging from digital-first leases to strata-titled branded residences—to expand across prime European and Middle Eastern locations.
Reported by
This article was written from the following reporting. Follow the links for the original coverage.
- [1]Limehome Partners with Aroundtown for Frankfurt Serviced Apartments— servicedapartmentnews.com
- [2]Cheval Eyes Middle East Growth via Long-Stay Demand— Skift
- [3]Habyt Debuts 319-Unit Aparthotel in Vienna— servicedapartmentnews.com
Frequently asked
+Where is Limehome opening its converted office property?
Limehome is opening an 86-unit serviced apartment property at the HAT64 Skyline Atlas, located at Bleichstraße 64-66 in Frankfurt am Main, Germany, with completion scheduled for 2028.
+How does Cheval Residences Dubai Islands differ from standard serviced apartments?
Cheval Residences Dubai Islands uses a branded residential model where individual buyers purchase the units and have the option to enter them into an operator-managed rental program.
+What size of property is the core Habyt brand targeting?
The Habyt brand targets large-scale flexible living developments that contain more than 150 units, frequently focusing on properties comprising roughly 300 apartments such as its 319-unit Vienna location.
+What is Habyt's Leaze brand?
Leaze is Habyt's asset-light coliving and shared living brand, established to manage localized coliving operations separately from Habyt's larger aparthotel and flex-living portfolio.
+Which regional portfolios did Habyt divest before its Vienna opening?
Habyt sold its Asia-Pacific business to Mitsubishi Estate and divested its coliving portfolios across France, Spain, and Portugal to three separate local operators.
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