The serviced apartment sector in Europe is growing at a faster pace than that of traditional hotels, according to a new report from hotel consultancy HVS.
Revenue per available room (revpar) for serviced apartments increased by 7% last year, compared with 5% for hotels, across Europe.
In the UK, revpar growth for serviced apartments and hotels was 3.5% and 1.5% respectively, while in London revpar increased by 4% and 3% respectively.
Over the next three years, 23,600 additional apartments are due to open across Europe, with a third of the planned development (7,507 units) due to take place in the UK. London accounts for 39% of the total UK pipeline, followed by Manchester (16%), and Edinburgh and Cambridge (both with 10%).
Simon Hultén, associate with HVS and co-author of the report, said: "As the sector becomes more mainstream we are seeing operators push for further expansion into key destinations. In the UK and Germany they are moving into secondary and tertiary cities as sites become more difficult to secure in leading cities."
"The lenders we surveyed continue to be happy to support further developments, particularly those in gateway cities, although brand and location are important requirements and some concern has been expressed about over-supply in some Western European markets."
Brands seeing the fastest growth across Europe over the next four years include Accor's Adagio, which is set to open 6,100 apartments, and Dublin-based Staycity, with 4,800 apartments in the pipeline.