As UK companies report an ‘86% increase in the use of serviced apartments’, are we about to see the rapid growth of the accommodation sector?
- Serviced apartments will see a 122.3% uplift in the number of UK units over the next two years
- British companies have registered an ‘86% increase in the use of serviced apartments’
- Industry experts believe the sector will come of age over the next 12 months, both in primary and regional cities
2016 could be a hugely significant year for serviced apartment investment in the UK.
That’s the view of a number of key industry figures who believe the sector will firmly establish itself in the British property market over the next 12 months.
A recent report from Savills and the Association of Serviced Apartment Providers (ASAP) found that national operators are set to increase their number of operative units by as much as 122.3% between 2016 and 2017, with the sector as a whole set to grow by 8.4%.
“The service apartment industry is on the cusp of big things, with an exciting future ahead,” according to Mark Harris of the Travel Intelligence Network. He cited the unrelenting appetite for corporate accommodation as the key driver of this growth, with UK businesses registering an 86% increase in the use of serviced apartments in recent years.
But it’s the emergence of serviced apartment developments in regional cities that’s excited many in the industry. “Without doubt, this expansion all across the UK is an exciting milestone for the industry. It’s fantastic to see openings in 2016 in secondary cities like York and Reading, as well as continuing growth in primary cities such as London and Birmingham,” declared John Wagner, Director of Cycas Hospitality.
Another of those regional cities is Manchester, where the increased demand for short-term lets has created a clear opportunity for serviced apartment investment. Occupancy rates at hotels and existing serviced apartments hit record levels in May 2015, as supply continues to become strained under growing demand.