UK: The UK serviced apartment sector achieved an 81.7 per cent occupancy level in 2017, with London and Edinburgh the top performers, according to the latest STR data.
Based on STR’s year-end performance figures, UK serviced apartments recorded an actual occupancy level of 81.7 per cent, a 0.2 per cent increase on 2016, while ADR rose 5.4 per cent to £148.48.
London accounted for much of the sector’s growth in 2017, posting a 2.2 per cent increase in occupancy to 83.8 per cent and a 9.8 per cent increase in ADR to £198.74. Across the rest of the UK occupancy dropped 1.7 per cent to an actual level of 79.7 per cent, while ADR rose one per cent to £93.71.
Performance was mixed across key UK cities. Manchester experienced a strong increase in supply over the course of 2017, and saw a 6.3 per cent decline in occupancy. Although the city’s actual occupancy level remained high at 80.5 per cent, ADR dropped 3.4 per cent to £100.09. Meanwhile, Edinburgh recorded a 0.4 per cent growth in occupancy to 84.4 per cent and a 7.3 per cent growth in ADR to £119.21.
Thomas Emanuel, director of Business Development for STR, said: “Although results were quite mixed across U.K. markets, it is encouraging to see that overall performance levels in the serviced apartment sector continued to grow in 2017. Supply growth has been considerable, which confirms the high level of investment interest in further developing this sector, but strong demand growth and the ability of operators to drive rate growth in several markets are positive indicators for how the sector will continue to adapt as its inventory expands.”
James Foice, chief executive of 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 which reflects the undaunted confidence in our sector as operators continue to accelerate their expansion plans.”</p
