Rise of the ‘bleisure’ market prompts spike in demand for serviced apartments


According to research from JLL, serviced apartments are soon set to become an established asset class as demand for the sector grows due to the rise of the ‘bleisure’ market. 

Since 2008, investment volumes in the UK have grown from £7.3m to £325m in 2015 and JLL predicts that transaction volumes will grow as a result of the attractive yields compared to other asset classes.

Over the next three years there are around 3,500 serviced apartments planned in the active pipeline, three times more than three-star hotels.

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While London is seeing the majority of this (around 40%) regional hubs such as Manchester and Edinburgh are also gaining pace due to increasing demand, limited supply and lower operating costs.

Hotel brands have also recently begun expanding into the sector, with examples including InterContinental Hotel Group’s Staybridge Suites concept. Marriott and Accor Hotels are also set to have their first serviced apartment openings in 2017.

Max Thorne, managing director in JLL’s Hotels & Hospitality team, commented: “This is an exciting time for serviced apartments and apart hotels. Serviced apartment operators are really starting to capture the trend for travellers looking for a ‘home from home’ with flexible work spaces, and mixed-use social spaces and food and beverage services. With supply at low levels in the UK compared to Singapore, Hong King and Australia, there are opportunities aplenty for investors.”



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