UK: Aparthotel brand Native has formed a joint venture with mixed-use developer First Base to develop up to £400 million of aparthotel units across the UK.
The joint venture will identify and secure aparthotel or mixed-use sites with a primary focus around London, Oxford, Cambridge, Bristol and Edinburgh. The joint venture aims to commit £200 million in 2018 and an additional £200 million in 2019.
The partners say the agreement comes at a time when the UK aparthotel sector is set for significant growth with increasing numbers of business and leisure travellers opting for the independence of apartment living, coupled with the service and flexibility of a hotel. The latest statistics from STR Global show that from January to December 2017, average daily rate in the aparthotel sector rose by 5.4 per cent, leading to revenue achieved per room going up by 5.7 per cent.
The new sites will either be design-led new-builds or restorations of historic, city-centre buildings. First Base will lead on design, planning and construction, and other target cities include Brighton, Reading, Manchester, York and Dublin.
Archie Hunter, development director at Native, said: “This partnership clearly demonstrates our commitment to standout aparthotel developments across the UK, at a time when the sector is set for significant expansion. With 20 years of experience behind us, we have established the Native brand as synonymous with outstanding service, creative design and operational efficiency. Our expansion will enable us to take our unique proposition to a greater range of key UK cities, addressing a significant gap in the market.”
Barry Jessup, director at First Base, said: “First Base and Native are kindred spirits in our appreciation of good design, and our belief in the fundamental strength of Britain’s regional cities and towns. Demand far out-strips supply for aparthotels in these locations, and we see homestay living playing an important role in the revitalisation of town centres. We will begin work on these developments as soon as we have secured the sites and planning consent, such is the demand.”
