Latest industry figures show that the serviced 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:
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.
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 serviced apartments. 77% of British business travellers now stay in serviced apartments up to 5 times a year for trips of up to 7 nights and of those who have stayed in a serviced 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 serviced apartment sector over the new two years.