UK serviced apartment sector reports a strong start to 2017
The first half of 2017 has seen a strengthened serviced apartment sector in the UK, according to a report by STR and the ASAP, with growth at almost three times more than the same period last year.
27 July 2017
The serviced apartment sector in the UK recorded a 5.5 per cent increase in revenue per available room (RevPAR) during the first half of 2017, mainly driven by growth in London, according to STR and the ASAP.Compared with the first half of 2016, serviced apartments in the UK posted 1.7 per cent growth in occupancy to an actual level of 79.2 per cent. Meanwhile, average daily rate (ADR) increased from 3.8 per cent to GBP139.08.
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“RevPAR was up 5.5 per cent for the nation as a whole and 15.5 per cent in London. As we’ve noted several times over the past year, the pound devaluation following last summer’s Brexit vote has resulted in a sharp uptick in leisure visitors due to a more favourable exchange rate.“It is encouraging to see that the UK’s hospitality performance growth has extended to the serviced apartment sector, and it is quite clear that London is the driving force.”Currently London accounts for around 55 per cent of the UK’s serviced apartment supply.
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Strongest growth reported in London
Rate growth for the country was fueled by a 10.3 per cent ADR increase in London (to GBP185.58), while the capital’s occupancy rose 4.8 per cent to 81.5 per cent. Regional UK (UK excluding London) reported a 1.4 per cent decline in occupancy to 76.9 per cent, although ADR increased 1.1 per cent to GBP90.27.“The UK hotel sector experienced a tremendous first half,” said Thomas Emanuel, STR’s director of business development.Related stories:
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“RevPAR was up 5.5 per cent for the nation as a whole and 15.5 per cent in London. As we’ve noted several times over the past year, the pound devaluation following last summer’s Brexit vote has resulted in a sharp uptick in leisure visitors due to a more favourable exchange rate.“It is encouraging to see that the UK’s hospitality performance growth has extended to the serviced apartment sector, and it is quite clear that London is the driving force.”Currently London accounts for around 55 per cent of the UK’s serviced apartment supply.
A step up from 2016
“After a challenging 2016, it’s good to see our sector delivering strong half-year results,” said James Foice, chief executive of the ASAP.“The signs are that this will continue over the summer months and into the fall and this is also borne out by our recent Sentiment Survey with Savills where operators reported that their operational performance was improving on 2016.“London’s performance is particularly impressive with the strong increase in leisure business a key factor in this growth.”For related news and features, visit our Serviced Apartments section.Access hundreds of global services and suppliers in our Online Directory Get access to our free Global Mobility Toolkit ©2024 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.
