Serviced apartments boost aparthotels sector in ‘burst of creativity’

Serviced apartment operators are looking to new ways of expanding their appeal with mixed used developments, in what hotel consultancy HVS has called a ‘burst of creativity’.

In the new report from HVS, The Serviced Apartment Sector in Europe, Highlights and Trends in 2016, the main example of this creativity was serviced apartments increasingly choosing to partner with serviced offices, as seen at operators such as Amsterdam-based Zoku and the ‘coworking’ office space concept WeWork.

Similarly, many existing serviced apartment groups have recently launched new brands, with key examples Exclusive from Apple Apartments, BridgeStreet’s new aparthotel brand Mode, and Ascott’s The Crest Collection. Zoku itself is a brand offshoot from parent group Hotels Ahead.

This creativity has come in the wake of significant growth in the sector, according to HVS, which estimates that 45% of new supply has been in the UK, alongside 30% in Germany. Key expanding brands include Residence Inn, Adina, Smartments, SACO, and Vision Apartments.

Arlett Hoff, author of the report and director at HVS London, said: “The serviced apartment sector is expanding rapidly and exploring new areas in an imaginative way. Mixed-use developments are by no means a new phenomenon in the world of real estate but the combination of serviced apartments and serviced offices in one building seems a natural fit.

“While some are teaming with high end hotels, others are looking at the work/leisure combination. This concept works particularly where the services apartments are targeted at the corporate market.”