Growth is expected to continue in the Serviced Apartment sector this year, with an estimated 2,000 new units opening in the UK. This represents a 9% increase on current stock within the UK.
Last year London accounted for much of the sector’s growth, posting a 2.2% increase in occupancy to 83.8% with the ADR in the capital hitting £198.74, a 9.8% increase on 2016.
According to a sentiment survey undertaken in November 2017 by Savills and ASAP (the Association of Services Apartment Providers), expansion in this sector is set to continue, with more than 40% of operators looking to accelerate their expansion plans in 2018.
James Foice, chief executive of the ASAP, said: “It’s really fantastic to see our serviced apartment sector continuing to perform very strongly in 2017 in spite of the economic uncertainty and the significant increase in supply, which proves that the consumer demand for this alternative way to stay continues to grow at a very impressive rate, year on year.
“We are very excited about the many new developments opening right across the UK in 2018, which includes properties in Southampton, Manchester, Edinburgh, Glasgow, London and Brighton, reflecting the undaunted confidence in our sector as operators continue to accelerate their expansion plans.”
Serviced apartments offer a lot of flexibility during an assignee’s stay. Unlike renting private property, there’s no need to commit to a long minimum period of rental, and having the ability to live like they are at home when they are miles away from everything familiar makes everything feel a lot easier.
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