GSAIR 2023 46
Pipeline , planning and guest experience
By Mark Harris Contributing Editor
As Fig . 21 shows , serviced apartment operators face a number of challenges in the coming year ; whether it be tackling rising energy costs or increased competition , investment in automation , focusing on the guest experience , or growing their presence in key cities and markets .
Pipeline
Just over a third ( 37.27 %) of operators regard development and expansion as a major challenge . This may explain why , despite the war in Ukraine , Eastern Europe remains a major target for serviced apartment operators .
As Fig . 22 shows , whilst London , Berlin , and Moscow all score highly in terms of where operators are planning to increase their inventory , the table is topped by the Republic of Abkhazia , on the eastern coast of the Black Sea in north west Georgia .
300 units are planned there due to the state securing increased Russian investment in the Abkhazian economy to fund infrastructure improvements to increase the supply of electricity from Russia to Abkhazia . 24
Selecting a new location
The criteria currently applied by operators when selecting a new location remain broadly the same as they were in 2022 , as Fig . 23-26 show . 69 % of operators , when asked to rate the importance of a variety of factors , rated local corporate demand as very important , and 53 % rated cost of property acquisition as very important . In contrast , only 22 % of operator respondents cited competitor presence as very important , and alarmingly , as many as 16 % of respondents didn ’ t rate planning permission as important when sourcing .
Fig . 21 Top 3 challenges facing operators in 2023
Challenge
% of Operators 1 Global economic crisis 80.91 % 2 International volatility 41.82 % 3 Competition 41.82 %
24 . http :// government . ru / en / news / 47863 /