The UK serviced apartment sector posted strong performance growth in 2017, according to ASAP and STR.
Based on STR’s year-end performance figures, UK serviced apartments recorded an actual occupancy level of 81.7 per cent, a 0.2 per cent increase over 2016.
Meanwhile, average daily rates rose 5.4 per cent to £148.
London accounted for much of the sector’s growth in 2017, posting a 2.2 per cent increase in occupancy to 83.8 per cent and a 9.8 per cent increase in rom rates, to £199.
Across the rest of the UK, serviced apartment occupancy dropped 1.7 per cent to an actual level of 79.7 per cent, though rates rose modestly to £94.
Thomas Emanuel, director of business development for STR, commented: “Although results were quite mixed across UK markets, it is encouraging to see that overall performance levels in the serviced apartment sector continued to grow in 2017.
“Supply growth has been considerable, which confirms the high level of investment interest in further developing this sector, but strong demand growth and the ability of operators to drive rate growth in several markets are positive indicators for how the sector will continue to adapt as its inventory expands.”