Serviced apartments hailed as a 'core' part of hospitality industry

The BHA, which launched its sector programme for the serviced apartments in March 2014, said the sector had started to gain ‘solid recognition’ as a core part of the hospitality industry and predicted aparthotels and serviced apartments would be at the ‘forefront of new hospitality innovation’ in the future.

“Independent apartment-living with all the benefits of expert hospitality services are a popular and fast-growing trend, particularly for young people and business travellers,” said Ufi Ibrahim, BHA chief executive.

“As well as dedicated new brands, many of our international member hotel brands are adding serviced apartment offers to their brand portfolios.”

Max Thorne, chief executive of CL Serviced Apartments and chairman of the BHA’s sector programme for aparthotels, added: “Aparthotels and serviced apartments are one of the fastest growing sectors of the hospitality and tourism industry, particularly in London and the UK’s leading regional cities, so it’s important that our Group has a strong voice in shaping key issues.

“For our sector, this year we see these priorities as sector brand building, jobs and skills, the sharing economy and cutting tourism VAT.”

Expanding rapidly​

According to Savills, serviced apartments and aparthotels only account for 3 per cent of the UK’s total hotel bed supply, but the sector is expanding rapidly.

“Expansion has been picking up pace with almost 50 new site openings over the last two years as opposed to the five openings reported back in 2005 with 3,200 new units in the development pipeline through to end 2017,” said Marie Hickley, director of commercial research at Savills.

Birmingham, Aberdeen, Edinburgh, London, Manchester, Liverpool and Newcastle have been identified as major growth areas.

Welcome recognition​

The Association of Serviced Apartment Providers (ASAP) welcomed the BHA's recognition of the serviced apartment sector as a core part of the hospitality industry.

“It is fantastic – the more people that can sit up and start shouting about the virtues of the serviced apartment sector, the better it will be for everybody. This is really positive stuff that is going on,” ASAP chief executive, James Foice, told BigHospitality.

ASAP has been the driving force behind promoting serviced apartments to leisure travellers, and recently introduced a quality assurance scheme to help potential customers identify quality operators. 

“The sector is certainly gathering momentum. I think people are sitting up now and thinking – all right then let’s see what it is all about - and I think they are impressed." said Foice.

"I think there was a preconception previously that serviced apartments were only for business travellers but that is changing and leisure consumers are seeing the benefits of more space and better value.

“There is much more clarity around what the sector offers, and now we have started promoting the accreditation scheme, people are sitting up and taking more notice.”