UK serviced apartment sector achieves 81.7% occupancy
The UK serviced apartment sector achieved 81.7% occupancy in 2017 with London and Edinburgh the top performers.
The Association of Serviced Apartment Providers (ASAP) and STR reported the 0.2% increase on 2016's occupancy rates. The average daily rate (ADR) of a serviced apartment rose by 5.4% to £148.48.
London accounted for much of the sector's growth, posting a 2.2% increase in occupancy to 83.8% with the ADR in the capital hitting £198.74, a 9.8% increase on 2016.
Across the rest of the UK occupancy fell by 1.7% to 79.7% with rates seeing a modest 1% rise.
Edinburgh recorded a 0.4% growth in occupancy to 84.4% and a 7.3% increase in ADR to £119.21.
James Foice, chief executive of the ASAP, said: "It's really fantastic to see our serviced apartment sector continuing to perform very strongly in 2017 in spite of the economic uncertainty and the significant increase in supply, which proves that the consumer demand for this alternative way to stay continues to grow at a very impressive rate, year on year.
"We are very excited about the many new developments opening right across the UK in 2018, which includes properties in Southampton, Manchester, Edinburgh, Glasgow, London and Brighton, reflecting the undaunted confidence in our sector as operators continue to accelerate their expansion plans."
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