Popularity growth for the UK’s Aparthotel Market
Serviced apartments, otherwise known as Aparthotels, are an increasingly prominent segment of the UK property market. It means the scope for new investors in this sector is now growing all the time.
Figures published by the Association of Serviced Apartment Providers (ASAP) showed that major projects are now getting off the ground in cities across the country. In total, Aparthotel stock has risen by more than 2,000 units in 2017, with significant developments taking place in areas including London, Manchester and Birmingham.
Outlined at this year’s ASAP Convention at the Business Travel Show, the body went on to reveal the growing popularity of Aparthotels among corporate users, with one-fifth of this group stating they increased their use of serviced apartments in the last 12 months.
The main reason given for this uptick in appetite among corporate travellers was the “value for money” that serviced apartments provide for guests. In addition, respondents to the research said they appreciate the convenience of having a self-catering option, as well as the flexibility to experience the location in which they’re staying like a local resident.
David Chapple, event director at the Business Travel Show, stated: “[This] is great news for the serviced apartment community and is testament to the work ASAP has done in raising awareness of, and building trust in, the industry and its suppliers.”
Overall, this positive news surrounding the Aparthotel sector was further bolstered through figures published in October by the West Midlands Growth Company’s Regional Observatory in partnership with STR Global.
The group found that Aparthotel occupancy rates in Birmingham achieved record levels of 75 per cent between June and August this year, with revenue per available room (RevPAR) rising by £4 to £48 on average in comparison to the same period of 2016.
Outlining the positive nature of UK Aparthotel development at present, chief executive of ASAP James Foice commented: “It’s fantastic to see such strong confidence in our serviced apartment sector, with so many significant new openings by our members this year, including a number of sizeable Aparthotels.
“It’s especially good to see that the expansion is happening in key cities right across the UK, including Manchester, Edinburgh and London, as the consumer demand for serviced apartments continues to increase.”
The market for hotel suite investment across the UK is therefore flourishing at present, with growing levels of appreciation among travellers and rising occupancy rates and RevPAR for providers.
Looking to the future, investors will likely continue to be drawn to the UK’s serviced apartment market, as the ongoing uncertainty of Brexit and the nation’s erratic economic performance leads many to be more risk-averse. Achieving long-term secure income streams will therefore be a top priority, and the UK’s burgeoning Aparthotel segment has shown itself to offer this in abundance throughout the last year.