UK: Birmingham’s serviced apartment market recorded an occupancy level of 83.1 per cent for Q1 2015, the highest in the UK.
According to the latest figures from ASAP and STR Global a strong corporate market and a lack of supply was responsible for the figure, which represents an increase of 26.8 per cent on the same period last year.
Liverpool also delivered a strong performance achieving occupancy of 77.9 per cent, an 11.7 per cent increase.
Thomas Emanuel of STR Global, who compiles a monthly UK serviced apartment occupancy survey, said: “The UK as a whole (excluding London) performed well achieving occupancy of 78.2 per cent, representing a strong 7.6 per cent increase on 2014 thanks to the general improvement in the economy, coupled with flat supply. The average daily rate of £83.13 represented a small 1.4 per cent increase on 2014.”
“By contrast the occupancy level for serviced apartments in London dropped marginally by 2.0 per cent to 77.8 per cent for the first quarter, purely down to an increase in supply.   Demand is still showing positive growth, as are rates, but the supply is impacting occupancy. However the sector commanded a very strong average daily rate, achieving £160.55 which represents a 7.7 per cent increase on 2014 (compared to the hotel sector which achieved an ADR of £127.96).”
James Foice, managing director of ASAP said: “It is very encouraging that, despite the increase in supply particularly in London, demand is strong with the consumer clearly continuing to see the many advantages of using serviced apartments, in particular appreciating the greater flexibility, more space and the home from home experience. The ADR performance is very positive and we remain optimistic that the rest of the year will be another record breaking year for the sector across the UK.”
www.strglobal.com
www.theasap.org.uk
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