Germany: Almost 14,000 units are set to enter the German serviced apartment market by 2020 according to the latest report by Apartmentservice.
The company’s Market Report Serviced Apartments 2018 gauges the current size of the sector at around 33,400 units across almost 600 developments. Munich is the city with the most new developments. By 2020, its market will expand by 51 per cent, with a further 2,700 units.
For the first time, the average room rates (€101) and RevPar (€81) were above those of the traditional hotel industry, and the report found a strong sense of optimism among operators – 84 per cent rate the development of the segment in Germany as “positive” or “very positive”.
Anett Gregorius, founder and owner of Apartmentservice, said: “We have recorded the opening of a further 13,900 units by 2020 alone – which corresponds to a market growth of around 42 per cent. Experts even predict an increase to 100,000 units by 2030, which equals to a 10 per cent share of apartments in the hotel industry.”
The segment generated around 14.2 million overnight stays in Germany in 2017, 2.7 million more than in the previous year. At the same time, the average length of stay fell to 27 nights last year but long stays are still dominating the segment.
Bookings are also becoming increasingly last-minute: the report found that almost every second booking was made only two weeks in advance in 2017. This development is partly due to increasing digitisation and is associated with the expectation that bookings can be made at short notice.
“The segment is in its strongest growth phase to date. For project developers, operators and investors this is the time to question the trends in the market and to concentrate on core competencies”, said Gregorius.
Apartmentservice has been publishing the market report annually since 2011, as there is no official data for this segment in Germany so far. Based on an online survey of serviced apartment operators with at least 15 units, the company determines typical key figures such as occupancy rate, length of stay, rates and trends within the segment.
The complete Market Report 2018 Serviced Apartments can be ordered for €429 plus VAT at www.apartmentservice-consulting.de.
