UK serviced apartment provision could grow and grow…
S & J are constantly looking for Serviced Apartment opportunities.
Despite being a relatively new phenomenon, serviced apartments form up to 25% of total temporary accommodation available in some regions of the world.
The figures come from the Global Serviced Apartments Industry Report which looked at the market share of serviced accommodation in six major global regions.
But of all the regions surveyed, Europe is one of the furthest below this figure, showing how much potential there is for the provision of UK Serviced apartments to rise.
Where do serviced apartments have the highest market share?
The highest proportion of serviced apartments in a country’s accommodation provision was found in Australia. There, serviced apartments make up 1 in 4 of the total available temporary accommodation places available.
Growth of serviced apartments in Australia has been nothing short of phenomenal. From almost nothing 25 years ago to over 1,000 properties today, the market is now the second largest in the world by room count and is far out in front of other regions in terms of overall market share.
In United States and Canada, a figure of 7% is considered the benchmark for serviced accommodation market share. Although the market there is more mature, being the largest global marketplace for temporary accommodation, the penetration of serviced apartments seems to have met with more resistance from other models, although there is plenty of evidence of continuing growth.
This puts in to perspective the much lower figure in Europe. Serviced accommodation on the continent has only reached 2% to date. Even to achieve the modest market share seen in the USA would indicate there is scope for threefold growth in European serviced apartment provision.
It is a trend we have certainly seen in the UK. Despite the recession and the lull in worldwide property markets, the serviced apartments industry continues to grow fast.
Please see attached Savills Report.