An article from HVS was released earlier this month with some very encouraging statistics about the growth of the European serviced apartment market.
The article kicked off with a very positive statement, describing how the sector has now found its place within the accommodation sector and investor community. Our thoughts exactly, although there is still a way to go before most European investors become fully aware of the sector’s potential, yet another reason why we’re so optimistic about its growth capacity.
The article continues to mention new dedicated brands such as YotelPAD by Yotel, Wilde, a premium brand by Staycity, and The Circle, a new concept by Adagio. This confirms our findings of last month’s article, where we explain how large hoteliers such as Hilton and Ascott, are expanding their extended stay brands at a rapid rate. It is definite that hotel brands are realising the abundant opportunities of the serviced apartment sector and they’re all wanting a piece of the action.
It was then announced that the European serviced apartment sector should expect an additional 20,000 new units in the next five years, a figure that is the double of last year’s projected pipeline. This suggests a prominent growth spurt in operator portfolio stock which is only feeding the competition. An earlier claim stated that 79% of European operators are on the lookout for new properties and as Saxbury is being approached by them on a regular basis, we’re finding it hard to disagree with this statistic.
With the uprising popularity of this sector, the 16 operators that were approached for the HVS survey agreed that their main challenge is competing for central sites with hotels. This is a very apparent and continuous struggle for many operators and is one of the reasons why we setup Saxbury.
As a specialist serviced apartment real estate agency, we endeavour to help our clients satisfy the fast-moving demands of the serviced apartment sector by assisting them with property disposals, redevelopments and new acquisitions. Our heritage enables us to provide an unrivalled understanding of this emerging asset class, and we frequently strive to find innovative and creative solutions for clients who would otherwise struggle to make their projects viable.
If you’re seeking advice or help with acquisitions or disposals, contact the Saxbury team for your next step.