London drives strong serviced apartment performance
A strong performance in London helped achieve a 5.5% increase in revenue per available room (revpar) across the UK serviced apartment sector during the first half of 2017, according to data company STR and the Association of Serviced Apartment Providers (ASAP).
Average daily rate (ADR) in the UK rose 3.8% year-on-year to £139.08 and occupancy increased by 1.7% to 79.2%.
In London, where around 55% of the UK's serviced apartment supply is located, the 15.5% increase in revpar was driven by a 10.3% increase in ADR to £185.58 and 4.8% growth in occupancy to 81.5%. In comparison, the regions reported a 1.1% increase in ADR to £90.27 and a 1.4% decline in occupancy to 76.9%.
Thomas Emanuel, STR's director of business development, said that the UK hotel sector had experienced "a tremendous" first six months of the year. "As we've noted several times over the past year, the pound devaluation following last summer's Brexit vote has resulted in a sharp uptick in leisure visitors due to a more favourable exchange rate. It is encouraging to see that the UK's hospitality performance growth has extended to the serviced apartment sector, and it is quite clear that London is the driving force."
James Foice, chief executive of ASAP, added: "After a challenging 2016, it's good to see our sector delivering strong half-year results.
"The signs are that this will continue over the summer months and into the fall and this is also borne out by our recent Sentiment Survey with Savills where operators reported that their operational performance was improving on 2016."
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