UK: The sixth edition of The Apartment Service’s GSAIR report says the growth in the supply of serviced apartment units is up 10.5 per cent in 18 months to 826,759.
Compiled by the Travel Intelligence Network (TIN) for The Apartment Service, the new 6th edition of the Global Serviced Apartments Industry Report (GSAIR) highlights continued strong supply growth globally with increasing interest and demand from all buying communities.
The report found that the growth in the supply of serviced apartments is up 10.5 per cent to 826,759 since the launch of GSAIR 2015/2016 and has doubled in the last eight years. Inventory is set to reach one million units by the time the 2017/18 GSAIR is published in 18 months time.
Other key findings include:
• Post-recession corporate reengineering and restructuring has encouraged higher adoption rates of serviced apartment solutions – 47.37 per cent of corporate buyers have increased usage of serviced apartments since the last survey
• Duty of care remains a high agenda item for global mobility buyers and corporate buyers
• Operators are diversifying accommodation products to cater for new buying trends
Charlie McCrow, CEO of The Apartment Service, said: “Sector expansion has brought a proliferation of new brands by operators who are personalising their offerings to different niche audiences though few of these enjoy widespread consumer recognition so far. In addition, there could also be imminent brand consolidation, as Hilton have announced with their extended stay portfolio.”
Jo Layton, MD group commercial sales for The Apartment Service, added: “This year’s GSAIR surveys have shown that serviced apartment usage across the globe is continuing to increase. A year ago, approximately three-quarters of corporates had sampled serviced apartments, and research for the latest edition has shown that 47.37% of corporate buyers have increased usage of apartments for business travel. This is a very positive growth in adoption across the buying community.”
Layton continued: “Hotel-like services are only a priority for 35.3 per cent of corporates, showing continued demand for corporate housing style serviced apartments as well as aparthotel products – this is an important factor to be considered when discussing future demand requirements for corporate buyers.”
Supply is expanding across all global regions, driven by rising institutional and private investment. McCrow adds: “The incremental profits on offer make this investment class very attractive. At the time of the first GSAIR in 2008 there were 401,997 apartments in 6,722 locations. Eight years later supply of apartments has more than doubled to 826, 759 apartments worldwide. Supply is up 10.5 per cent year-on-year and has increased in every global region.”
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