Serviced apartments evolving, according to HVS report

06 July 2015 by
Serviced apartments evolving, according to HVS report

Urban Villa

Serviced apartments are set to make better use of technology and offer smaller units, according to a new report from hotel consultancy firm HVS London.

The research was published to coincide with this week's Serviced Apartment Summit, which will be held in London (7-8 July).

Following a survey of investors, lenders and developers, HVS concluded that many of them would be willing to participate in the growing serviced apartment sector.

However, several expressed a need for more comparative information on the performance of serviced apartments such as occupancy, average rates and operating margins.

The report said serviced apartments have gained momentum across Europe as new openings, brand activity and a number of significant transactions have raised awareness of the sector. It said the UK, Germany and France are proving to be the most interesting markets.

HVS director and report author Arlett Oehmichen highlighted that the market is moving from being a niche offer towards the mainstream, but is still evolving.

"Looking to the future we are likely to see continued changes in the offer and differences emerging between leading brands," she said. "The next generation of serviced apartments is likely to focus on better use of technology, more efficient use of space and a tendency towards smaller units. We have already seen this with Zoku, the new brand from HotelsAhead, which claims to be a home-office hybrid targeting so-called ‘bleisure' travellers."

She added: "Lenders and investors are in search of quantitative rather than qualitative information in order to fuel the growth of the market with capital."

This year the serviced apartment sector has already seen the acquisition of almost 650 units in London by Starwood Capital Group for £206m and the acquisition of the Serviced Apartment Company (SACO) by Oaktree-backed CLSA.

A number of new brands have also entered the market, including Union Hanover's first Urban Villa in West London and CLSA's high-tech Beyonder ApartHotels brand, the first of which is due to open in London in December 2015.

Time right for hotel acquisitions, says HVS >>

Mixed year ahead for hotels, says HVS London >>

Looking for a job? See all the current hotel vacancies available with The Caterer Jobs >>

Latest video from The Caterer

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking