Serviced apartment sector continues regional growth

11-May-2015 - Last updated on 08-Aug-2024 at 09:54 GMT

Lack of supply and a strong corporate market continue to drive growth in the serviced apartment sector outside of London, according to industry data analysts STR Global.

Occupancy across the regions reached an average of 78.2 per cent in March 2015, up 7.6 per cent from the same period in 2014.

Average daily rate (ADR) rose 1.4 per cent to £83.13 throughout the country.

Birmingham was the top performing city with occupancy reaching 83.1 per cent in March, up 26.8 per cent year-on-year.

Liverpool also delivered a strong performance of 77.9 per cent, an 11.7 per cent increase in occupancy.

Outstripping the hotel market

The rising number of serviced apartments in London resulted in a two per cent decrease in occupancy year-on-year to 77.8 per cent in March 2015.

However, the sector commanded a strong ADR of £160.55, up 7.7 per cent from March 2014. Serviced apartments now outstrip the hotel sector in the capital, which achieved an ADR of £127.96 in the same period.

James Foice, managing director of the Association of Serviced Apartment Providers, said: “It is very encouraging that despite the increase in supply in London, demand is strong, with the consumer clearly continuing to see the many advantages of using serviced apartments.

“In particular, [consumers are] appreciating the greater flexibility, more space and the home from home experience. The ADR performance is very positive and we remain optimistic that the rest of the year will be another record breaking year for the sector across the UK.”

The ASAP expects its membership to double in size by the end of 2015 as the sector continues its rapid growth.