Demand for serviced apartments is outstripping supply in the UK according to a new report by hotel consultancy HVS London.
An increasingly mobile workforce that is driving business travel and relocation activity has resulted in the growing demand, while leisure travellers are also looking for the additional space and amenities that serviced apartments provide as opposed to conventional hotels.
The report, published ahead of next week's Serviced Apartment Summit (8-9 July), found that despite progress made in the UK, France and Germany to define and classify the sector, the growing serviced apartment market continues to face a lack of standardisation both in product and distribution.
"The development of a classification system or a specific ‘serviced apartment' certification in the UK is crucial to foster industry-wide understanding, security and transparency," commented report co-author Veronica Waldthausen, associate, HVS London.
HVS has led significant first steps in the UK to classify the sector with definitions recently agreed upon and a charter due to be signed-off at the Summit by most of the leading serviced apartment operators and developers.
Serviced apartments in the UK have recorded a healthy growth in revenue per available room (revpar) over the past three years. In 2013, the average achieved daily rate was around £120, with occupancy reaching 79%.
The majority of the UK's serviced apartments are in London and the major cities, with brands such as Citadines, BridgeStreet, SACO Apartments, Staycity, Go Native, Marlin Apartments, Think Apartments and Premier Apartments, all having an increasing presence.
"Over the next few years, London will see significant increases in supply, primarily in the eastern and southern parts of the city," added Oehmichen.