Get the latest hospitality news and inspiration straight to your inbox. Subscribe to our newsletter.

UK serviced apartment occupancy rises in Q1 2017

UK serviced apartment occupancy rises in Q1 2017

Occupancy in the UK serviced apartment sector was 75.9% in Q1 2017, up 2% year-on-year, despite a mixed regional performance.

Figures published by the Association of Serviced Apartment Providers (ASAP) and benchmarking firm STR show that London recorded the highest occupancy for the period at 78.3%, up 4.3% on 2016.

Average daily rate (ADR) in the capital also saw healthy growth of 7.7% to £170.97.

But Birmingham and Manchester both reported a fall in Q1 occupancy.

Birmingham saw occupancy decrease by 6.6% year-on-year to 77.2%, while Manchester was down 5.8% to 76.6%. ADR in both cities grew by 3.1% to £84.23 and 0.7% to £95.32 respectively.

Edinburgh’s occupancy was flat at 72.9% but with a 3.2% rise in ADR to £90.66. Liverpool reported a 3% increase in occupancy to 71.9% as well as a slight rise (0.6%) in ADR to £81.99.

STR director of business development Thomas Emanuel commented: “As we’ve seen in the hotel industry, the UK serviced apartment sector is currently benefiting from strong demand as the pound devaluation makes travel to the UK more affordable.

“As a major world hub with a wide variety of accommodation options, it is quite encouraging to see that this uplift in business has extended to serviced apartments, confirming that there is definitely strong consumer interest for this sector.”

James Foice, chief executive of ASAP welcomed the broadly positive figures in a challenging period, which he warned is set to continue.

He said: “It’s good to see our sector achieving stronger quarter one occupancy compared to the first quarter in 2016 which was particularly challenging. Anecdotal evidence from a cross-section of our members across the UK suggests many operators are cautious about the coming months against the backdrop of the uncertain economic outlook.

“But it’s encouraging to see stronger leisure business particularly in London as the appeal of our serviced apartment product broadens to leisure travellers with the increase in supply, particularly in the aparthotel segment.”

UK serviced apartment sector to expand by 13.1% in 2017 >>

Serviced apartment operators optimistic for 2017 >>

Videos from The Caterer archives

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs

1 comment

Sign in to comment or register new account

Isabel Stone - 9 months ago

Ahhhh this is a great article!! I love love it! Me and my husband have been looking into property development for a while now so it’s great to come across an article like this! Because he doesn’t actually have a pension, we’ve been thinking about using the pro ... read more ... read less

Start the working day with

The Caterer’s free breakfast briefing email

Sign up now for:

  • The latest exclusives from across the industry
  • Innovations, new openings, business news and practical advice
  • The latest product innovations and supplier offers
Sign up for free