The UK serviced apartment sector recorded a 5.5% increase in revenue per available room (RevPAR) during the first half of 2017, mainly driven by growth in London, according to research and data specialists STR and the Association of Serviced Apartment Providers (ASAP).
Compared with the first half of 2016, serviced apartments in the UK posted 1.7% growth in occupancy to a level of 79.2%. Meanwhile, average daily rate (ADR) increased 3.8% to £139.08.
Rate growth for the country was fuelled by a 10.3% ADR increase in London (to £185.58), while the capital’s occupancy rose 4.8% to 81.5%.
Regional UK (excluding London), however, reported a 1.4% decline in occupancy to 76.9%, although ADR increased 1.1% to £90.27.
“The UK hotel sector experienced a tremendous first half,” said Thomas Emanuel, STR’s director of business development. “RevPAR was up 5.5% for the nation as a whole and 15.5% in London. As we’ve noted several times over the past year, the pound devaluation following last summer’s Brexit vote has resulted in a sharp uptick in leisure visitors due to a more favourable exchange rate. It is encouraging to see that the UK’s hospitality performance growth has extended to the serviced apartment sector, and it is quite clear that London is the driving force.”
London accounts for roughly 55% of the UK’s serviced apartment supply.
“After a challenging 2016, it’s good to see our sector delivering strong half-year results,” said James Foice (pictured), chief executive of the ASAP. He added that the signs were that the trend would continue over the summer months and into the autumn, a feeling borne out by a recent ASAP Sentiment Survey with Savills where operators reported that their operational performance was improving on 2016.
ASAP is a not-for-profit trade body dedicated to the serviced apartment industry. Its 189 members own and operate over 100,000 properties globally.