Pivoting from BTR to aparthotels

Amro Partners’ decision to pivot the former Croydon Park Hotel away from a 447-unit BTR scheme and towards an aparthotel is a telling tale for London’s development scene. High interest rates, rising construction costs, and regulatory change were all cited as contributing factors. With reforms such as the Renters’ Rights Act set to reshape the BTR sector from May this year, developers may increasingly view mid-stay hospitality assets such as aparthotels as a more attractive option. 

“Repositioning the existing structure significantly accelerates delivery compared with a ground-up scheme, allowing us to capture demand sooner while improving capital efficiency and reducing development risk,” explained Amro UK investment director, Tom Donnachie. According to the British Property Federation, 613 new BTR homes started construction in 2025 – an 80 per cent drop in volume compared to 2024. Speed to market is clearly becoming a more significant, if not necessary metric in a volatile macroeconomic climate for developers.  

The operational flexibility that aparthotels offer can help to hedge against inflationary pressure in a way that traditional BTR cannot. The ability to adjust rates across different lengths of stay allows operators to respond in real time to shifts in demand and pricing conditions. It’s precisely why so many serviced apartment brands have partnered with BTR developers during lease up. It was only a matter of time before residential developers embraced the aparthotel model fully, rather than borrow its mechanics.

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