Serviced Apartment News in partnership with Vertus Edit held a Feed Your Mind event on the topic of diversification opportunities for BTR operators.
Feed Your Mind events are co-hosted, content-driven roundtable discussions over breakfast, lunch or dinner. They are designed to provide brands and service providers with the opportunity to inform and shape the market.
In partnership with Vertus Edit, the latest Feed Your Mind discussion focussed on the diversification opportunities for BTR operators. Vertus Edit is the new aparthotel brand from Vertus, the BTR arm of Canary Wharf Group (CWG).
Alastair Mullens, managing director – residential of CWG, provided a short case study of the aparthotel project and how it aligns with the overall vision of establishing Canary Wharf as a stay-live-work destination.
Philip Grace, chief development officer of Bob W, and Richard Dawes, director – UK and pan-European hotel capital markets at Savills, supported the conversation with opening observations.
Some key takeaways included:
• Flexible living options such as aparthotels help to bridge the gap between transient hotel stays and long-term BTR.
• Covid has helped shift investment appetite around risk. In 2024, approximately £5.5 billion of hospitality transactions in the UK were recorded. PBSA deals represented around £3.75 billion.
• Aparthotel/serviced apartment operators may choose not to lease inventory from BTR as there are potential complications over planning use classes and length of stay.
• On the flip side, the existing on-site maintenance, concierge services, and quality units available in BTR assets support operational efficiencies.
• The Renters’ Rights Bill, which will abolish fixed-term tenancies and introduce periodic tenancies, may lead to a revision of the 90-day rule in Greater London. If residents book directly with BTR, it could change the operator landscape.
• Currently, there are not many residential C3 projects getting off the ground.
• Despite worries that BTR tenants will be able to move after two months, existing private renters show a tendency to stay put unless forced to move by rising costs.
Companies represented include APO, Ariosi, City Pop, Dorsett Hospitality, Home.ly, Keystone Law, Portland Brown, Saxbury, Sercasa, SilverDoor, The Apartment Network, The Residence, Urban Chic, Urban Rest, and more.
For further information about our Feed Your Mind events, click here or contact Katie Houghton at katie@internationalhospitality.media / +34 711 02 42 31.
