It seems that the first half of this year saw the serviced apartment sector record a 5.5% growth in terms of revenue per available room. London, which accounts for 55% of all serviced apartments in the UK, is the major contributor of that growth – with a huge increase compared to 2016 of 15.5%.
Brexit and a favourable exchange rate are key factors
The economic downturn since Brexit has made exchange rates extremely preferable for tourists – and the tourism industry as a whole is reaping the benefits. But serviced apartments are performing particularly well. In fact, demand for serviced apartments is currently exceeding supply. The 2016 Knight Frank Global Cities Report showed that nearly two thirds of global serviced apartment operators are experiencing year-on-year growth. The number of serviced apartments around the world has grown by 80% since 2008 – so the fact that demand is exceeding supply is especially impressive. It seems the world really is waking up to the benefits of serviced apartments over hotels.
For professional serviced apartment providers, Airbnb has been a game-changer
It’s now widely agreed that Airbnb are helping traditional serviced apartment providers like myself by raising the profile of what we can offer travellers. Indeed, rather than being a threat, Airbnb is making people think differently about travel accommodation. And rather than taking business away from traditional operators, it’s making travellers think beyond the traditional hotel stay. Essentially, Airbnb are levelling the playing field. Experts agree that this change in perception is a key factor behind the growth of serviced apartments in the UK and across the world.
Find out what all the fuss is about
With serviced apartments in London getting booked up well in advance, it’s important to plan ahead if you’re headed to the capital. My ever-popular apartments in south-west London have been growing in popularity for many years – so take a peek at what we offer, and book up while you can!