London leading boom in serviced apartments
London is leading the boom in serviced apartment supply as further evidence evidence emerges that the sector is becoming a mainstream competitor in the hotel market.
In 2017 there is expected to be a 10% growth in the supply of serviced apartments and aparthotels in London and 10.4% in regional UK, according to the Hotel Quarterly Bulletin from property company Knight Frank. With an average growth rate of 6.8% per year between 2013 and the forecast figures for the end of 2017, the total number of units is expected to increase to more than 21,500.
With supply in London set to increase by over 1,000 units, London's share of the market is anticipated to rise close to 53%. Edinburgh, Manchester, Liverpool, Birmingham and Aberdeen are the top five regional cities, accounting for around 5,000 serviced apartment units; 24% of the total supply.
During the past few years the serviced apartment sector has gained significant momentum in terms of development and branding. Alongside several specialist extended stay operators, the roll out of the extended stay concept by a number of the global hotel operators has reinforced the sector's position in the hotel market.
UK serviced apartment occupancy rises in Q1 2017 >>
UK serviced apartment sector to expand by 13.1% in 2017 >>
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