Worldwide: Serviced apartment agent SilverDoor has released its latest quarterly market update report for 2024.
Globally, booking data shows a YoY reduction in average daily rate (ADR) by the end of the year in key locations including London, Chicago and Singapore. Average length of stay (ALOS) has seen an 18.8 per cent decline by nine nights YoY – down from 48 nights to 39. By region, ALOS is 35 nights in EMEA, 59 nights in the Americas and up to 63 nights in APAC.
Alongside the shifts in ADR and ALOS, lead times have held at 42 days globally, compared to 41 days at the same time last year. EMEA has the shortest lead times of 40 days, compared to 49 days in the Americas.
For those corporates investing in serviced apartment accommodation, the amenities that the local area offers are influencing and steering demand.
The popularity of the hybrid model is reflected in the departure from enquiries focused on home-working capabilities towards office proximity. The 2024 IPSOS UK Market Research Report recently showed that whilst 71 per cent claim hybrid working is important, over half (55 per cent) of 18-30s prefer it.
From an ESG perspective, corporates are also keen to work with property providers who demonstrate they are working with local planners to ensure that any new build projects also supports regeneration.
Al Butler, senior client programme manager, SilverDoor said: “Across the board the focus on sustainability continues. For those businesses keen to encourage a return to the office, albeit a hybrid one, demand for accommodation that offers shorter commute times remains high. Not only does it fit the bill in terms of reducing emissions and supporting employee wellbeing and a better work-life balance, it also means a hybrid model is significantly easier to achieve. Time, as ever, will tell how the hybrid model evolves in the future and the impact that has on the demand for corporate housing from the traveller and design and supply from developers.”
