The aparthotel or serviced apartment sector is rapidly growing worldwide, especially in Western Europe, as both business and leisure travellers realise the benefits of an alternative accommodation model. The serviced apartment industry is achieving record growth. STR and ASAP statistics for 2016 show that the UK’s serviced apartment sector outperformed hotels in occupancy levels, with 81% compared to 77.2%.
The figures show that many travellers are turning towards aparthotels for a number of reasons, as the sector experiences a rapid boom in popularity. Many international hotel groups, having noticed this market shift,
are jumping on the bandwagon by creating or acquiring separate apartment brands. The growing sector is also more credible than ‘homestay’ apartment options offered by online platforms such as Airbnb, as aparthotels offer a range of concierge services and modern amenities. Especially for the corporate traveller, these home swapping experiences simply don’t offer the level of customer service which is expected.
The increasing popularity of aparthotels
Aparthotels offer the best of both worlds – a cross between a self-contained apartment and a hotel. They generally offer more space and more independence, with the advantage of longer stays and management services. Moreover, a serviced apartment is often more cost effective than a city centre hotel room, especially when travelling in a large group with the need to book two or more rooms.
The modern traveller is flexible, and conventional accommodation doesn’t usually tick all the boxes. Both tourists and business travellers prefer to stay in aparthotels for the home away from home experience, and the ease and flexibility of booking for long stays and big groups.
The demand for serviced apartments is growing year on year, and the sector is expected to expand dramatically over the coming years. Globally, the number of serviced apartments across the world has grown 80% in the last decade. The UK is set to see a rapid expansion in this area in the new few years, as the hospitality report from JLL predicts an extra 1,500 rooms to open in London by 2019.
This exciting expansion of the hospitality sector is only becoming stronger and stronger, making the aparthotel and serviced apartments market a great place to invest. Take a look at our research page for more information regarding the investment case for serviced apartments.