GSAIR 2025 | Page 26

Credit: Locke Hotels

Demand summary

Post-pandemic demand for serviced apartments continues to grow despite cost control pressures, extra regulatory requirements, geopolitical instability, and ESG commitments.

In fact, the global serviced apartment market is predicted to be worth £ 183.58 billion by 2030, expanding at a robust compound annual growth rate( CAGR) of 12.7 % from 2024 to 2030. 5 Europe is also seeing strong growth, with its serviced apartment market forecasted to grow at a CAGR of 12.3 % until 2030. 6

In the UK, the serviced apartment segment stood at about £ 3.08 billion in 2024. It is expected to reach £ 2.31 billion this year and grow at a CAGR of 8.8 % between 2025 and 2033. 7

Demand is strong in the first half of 2024, UK serviced apartments showed stronger performance compared to hotels, with RevPAR remaining 19 % above 2019 levels for the serviced apartment sector, while the broader hotel market was only up slightly at 1.5 % and 3.1 % in London and the regions, respectively, for year-to-year date. 8 Having increased by 3.8 % between 2023-24, occupancy is predicted to rise again in the next twelve months, although this may be tempered by a softening of ADR in London. 9

Does the picture painted here match up with serviced apartment operators’ experiences? Supercity Apartments is a boutique operator, with properties in London, Brighton, and Manchester.“ We are seeing an increase in bookings, and length of stay from September onwards to the end of the year,” says Carley Bannaghan.

Trine Oestergaard Stafford is MD of House of Fisher, a family-run company which owns and operates serviced apartments and aparthotels in the South of England and Thames Valley.

“ Overall, our length of stay has gone up year-on-year. We are seeing more project work, and more group bookings which we never had before. We’ re also seeing low business in the winter months and high in the summer months. The market is also incredibly competitive, which is pushing rates down, so we’ re finding it hard to increase our ADR, particularly in those downturn months.”