Growth in the serviced apartment sector across Europe continues to outpace that of traditional hotels with many of the biggest operators set to double their portfolios over the next three years, according to a new report from global hotel consultancy HVS.
RevPAR growth for serviced apartments has outperformed that of hotels with a 7% improvement across Europe for the sector last year, compared with 5% for hotels.
In the UK RevPAR growth for serviced apartments was 3.5%, compared with 1.5% for hotels, and in London the sector saw RevPAR growth of 4%, compared with 3% for hotels.
The sector’s pipeline is set for further expansion across Europe, with 23,600 additional apartments due to be added to the inventory by 2022, making it one of the most active sub-sectors in the hotel industry.
The UK represents a third of this development with 7,507 apartments planned over the next four years. London accounts for 39% of the total UK pipeline, followed by Manchester (16%), Edinburgh and Cambridge with around 10% each.
“As the sector becomes more mainstream we are seeing operators push for further expansion into key destinations. In the UK and Germany they are moving into secondary and tertiary cities as sites become more difficult to secure in leading cities,” commented report co-author Simon Hultén, associate with HVS.
Brands seeing the fastest growth across Europe over the next four years include Adagio, opening some 6,100 apartments across Europe, Staycity, opening some 4,800 apartments in the UK, Ireland, Germany, France and Italy, and Adagio with just under 4,800 openings.
Saco, Adina and Residence Inn also have plans for over 1,000 units each.