UK: Research from Savills says the number of internationally branded purpose-built serviced apartments in Europe will grow by more than 50 per cent during the next two years.
Savills says the growth will be prompted by constrained supply across key gateway cities such as London, Paris, Frankfurt, Amsterdam and Brussels.
Marie Hickey, director of research at Savills, said: “Some of the larger operators are moving away from a reliance on the traditional long stay corporate market and are tapping into shorter stay guests, particularly as businesses reliance on travel management companies wanes. As a result, developing a branded product that appeals to a variety of guest segments and which raises consumer awareness has become all the more important to operators.”
James Bradley, associate director of Savills hotels, added: “This expansion of branded purpose built stock should strengthen the appeal of the sector to institutional investors and we anticipate a significant increase in capital in the next few years. However, over the short term, private equity and owner operators will continue to be the primary driver of expansion. When institutional demand does materialise we expect it to be focused on the major cities in the UK, France, Germany and Benelux.”
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