Serviced apartment sector to double in size by 2018: report
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The Association of Serviced Apartment Providers (ASAP) has released the findings of a survey produced in conjunction with Savills, that predict the sector will double in size in the UK in the next two years.
The sector as of today has a relatively small market share of ca. 3.1% of all hospitality sectors ie ca. 19,000 units. However, the survey confirms that both national and regional operators in the UK are on track to increase the number of serviced apartment units they operate by some 122.3% and 82.2% respectively, effectively doubling the total number of units across the UK.
The sector is expanding rapidly right across the UK, not just in London, with Scotland and the Midlands in particular set for very significant growth, the report estimates.
James Foice, managing director of the ASAP commented: ‘This is the breakthrough moment for the UK Serviced Apartment sector, a complete game-changer. Our joint report with Savills confirms the sector will be the UK’s fastest growing hospitality segment to end 2017 with average annual growth of 8.4% for both 2016 and 2017.
“This growth will position the serviced apartment sector as a mainstream accommodation choice, a key player within the hospitality industry as a whole. We will have the critical mass of stock to ensure the consumer will have the option of booking a serviced apartment wherever they choose to travel in the UK. The expansion to every corner of the UK is particularly exciting: so while the most significant new developments are in our largest cities – London, Birmingham, Liverpool, Manchester, Edinburgh, Glasgow, it’s great to see new openings in 2016 in secondary cities including Reading, York, Chester, and Aberdeen.”
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