Research conducted by JLL Estate Agents has indicated that the demand for serviced apartments is growing due to the rise in the ‘bleisure’ (business and leisure) market.
Since 2008 investment values have increased from £7.3m to £325m in 2015. The estate agency has also predicted that transaction volumes will continue to rise because of the attractiveness compared to other assets.
Over the next three years, 3500 serviced apartments are expected to come into the pipeline; three times more than three-star hotels. The areas expected to see the majority of serviced apartments are London at 40%, followed by regional hubs in Manchester and Edinburgh who have also experienced an increase in demand.
Popular hotel chains have also started boosting this sector with Marriott and AccorHotels due to open their first serviced apartments in 2017.
Managing Director at JLL’s hotel and hospitality team, Max Thorne said “This is an exciting time for serviced apartments and apart hotels. Serviced apartment operators are really starting to capture the trend for travellers looking for a ‘home-from-home’ with flexible work spaces, and mixed-use social spaces and food and beverage services.”
Quality in Tourism has a National Quality Assessment Scheme for Serviced Apartments. Find out more about the scheme and how your business can benefit from being assessed here.