Strong Q2 performance for serviced apartments
Occupancy averaged 81.5 per cent in London and 77.8 per cent in the rest of the UK, with revPAR at £126.67 (up 9 per cent) and £65.86 (up 12 per cent) respectively.
Outside of London, Manchester delivered the best occupancy at 80.2 per cent, followed by Edinburgh at 77.7 per cent, Liverpool at 77.5 per cent and Birmingham at 68.4 per cent.
These figures mark the continued growth of demand for this type of accommodation, surpassing London’s 77.8 per cent and regional UK’s 72.2 per cent occupancy recorded in Q1.
James Foice, managing director of the ASAP, said: “We are delighted to report such strong occupancy right across the UK for quarter two proving that the demand for our product continues to go from strength to strength. 2014 is shaping up to be an excellent year for our sector.”
Supply and demand
Speaking to BigHospitality in June, the association’s marketing consultant Joyce Cawthorpe explained the growth was due to a combination of supply and demand as “most people [were] waking up to the benefits”.
The sector is set to grow by 10 per cent this year, with the majority of new launches in London.
The industry’s boom is also prompting a change in clientele, with more and more operators targeting leisure customers on top of their established corporate guests.
Mixed-use developments
Serviced apartments are also set to benefit from the multiplication of mixed-use developments or ‘branded residences’ combining a hotel with a wing of apartments for sale or nightly stays. This new trend is a response to travellers’ increasing demand for flexible accommodation options.
In the case of London, it could be help operators and developers maximise revenue through a mix of profit sources, providing relief from ever-rising property prices.
Read BigHospitality’s interview with City Marque’s business development director Ian Daniels on the industry’s prospects and remaining challenges here, or check out our video infographic on London sleeping trends and the rise of branded residences below.
