London: Latest HVS report reveals growth but lack of standardisation in Europe
A report on the European serviced apartment market by HVS London, published ahead of next week’s Serviced Apartment Summit (8-9 July), says that despite the progress made in the UK, France and Germany to define and classify the sector, the serviced apartment market still lacks standardisation in product and distribution.
In the UK significant first steps, led by Serviced Apartment News and HVS, have been taken in classifying the sector with definitions recently agreed upon and a charter due to be signed-off at the Serviced Apartment Summit by many leading serviced apartment operators and developers.
Report co-author Veronica Waldthausen, an associate at HVS London, said: “The development of a classification system or a specific ‘serviced apartment’ certification in the UK is crucial to foster industry-wide undertanding, security and transparency.”
The report revealed that serviced apartments in the UK have recorded healthy growth in RevPAR over the past three years, with the 2013 average reaching £120, and average occupancy at 79%.
Co-author HVS director Arlett Oehmichen added: “Over the next few years, London will see significant increases in supply, primarily in the eastern and southern parts of the city. Performance in the serviced apartment sector has been one of relatively resilient growth. The market is also attracting investors, although financing for development is more difficult to source, making expansion slow.”
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