Aparthotel brand Native has formed a joint venture with mixed-use developer First Base to develop up to £400m of aparthotel units across the UK.
The new partnership will identify and secure aparthotel or mixed-use sites with a primary focus around London, Oxford, Cambridge, Bristol and Edinburgh, with a committed spend of £200m in 2018 and a further £200m in 2019.
Each new site will benefit from Native and First Base’s design-led approach on ground up developments and the sensitive restoration 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.
The latest statistics from STR Global shows that from January to December 2017, average daily rate in the apart-hotel sector rose by 5.4%, leading to revenue achieved per room going up by 5.7%.
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.”
Native comprises a boutique portfolio of developments ranging in size from 11-180 apartments. The collection is home to over 1,000 apartments across a range of new build developments and refurbished period warehouses and offices across the UK including London, Manchester & Glasgow.