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Business travel drives growth of short term rental market

Latest industry figures show that the short let apartment industry is continuing to grow with demand for apartments outstripping supply. In the latest Global Serviced Apartments Industry Report the increasing demand is attributed to an increasingly-mobile global workforce driving business travel along with relocation activity.

Key findings

In the report which was published by Travel Intelligence Network for The Apartment Service, include:

  • There are 655,911 serviced apartment units in 8,802 locations worldwide – an increase in supply of 9.4% since the previous report which was published in 2011.
  • The inventory of the 15 top global suppliers grew by just 1.7% between reports suggesting that the majority of new apartments are from independent operators.
  • 94% of operators reported an increase in demand compared to 77% in the previous report.
  • Corporates reported choosing serviced apartments due to cost per night, length of stay and location
  • Average rental rates were 10-20% cheaper than hotels

The report showed that Europe remains relatively under-developed in terms of serviced apartments with London having just 1.2 apartments per 1,000 business visitors. This compares to Singapore (1.8), Sydney (2.6) and Hong Kong (5.3).  Despite an obvious need for further growth the report found that development opportunities are limited with strong competition from residential developers. It also reported that financiers do not yet fully understand the commercial potential of the serviced apartment sector which can make it harder for developers to raise the money to build new apartments.

Short term lets make perfect holiday breaks

Looking specifically at the UK market the UK Institute of Travel and Meetings reported that serviced apartment usage is growing in 86% of British companies with 60% of UK corporates’ travel policies now including short term apartments. 77% of British business travellers now stay in short or medium let apartments up to 5 times a year for trips of up to 7 nights and of those who have stayed in a short term apartment, 79% said they preferred them to hotels.

In a further report from the hospitality consulting firm HVS, property consultant Savills predicts a 50% growth in Europe’s short term apartment rental sector over the new two years.

If you are searching for a home away from home, check out our luxury, furnished apartments in London and Hertfordshire. Our short term rentals are the ideal solution for both business and leisure breaks. Why not get in contact with us today? We will be happy to answer any further questions you may have to make the most of your stay. 

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