Serviced Apartment Sector News Feed

27/04/2016

UK Chain Hotels Market Review – January 2015
Provinces perform; London lags
Source: hospitalitynet.org


UK Provinces started the year by building on their 2014 performance, with a double-digit increase in gross operating profit per available room (GOPPAR). However, London hotels posted bottom line declines despite positive movements for January in top-line performance metrics, according to the latest data from HotStats.

East Midlands was one of the leading regions driving the UK Provinces performance in January, with increases recorded in occupancy of 4.6 percentage points to 55.3% and in average room rate (ARR) of 5.8% to £63.97, leading to a rooms revenue per available room (RevPAR) growth of 15.4% to £35.36. A general positive performance was recorded in ancillary departments and as a result, total revenue per available room (TRevPAR) levels surged by 10.1%.

Hoteliers also managed to reduce payroll by 2.2 percentage points to 38.0% to deliver a departmental operating profit per available room (DOPPAR) growth of 18.0% compared to the same period last year. Despite overheads per available room climbing by 7.2%, GOPPAR shot up by 51.3% representing a gross operating conversion of 15.5% for the month.

Aberdeen profits follow oil price drop

In January, Aberdeen hotels registered negative year-on-year comparisons across all key performance indicators with the exception of ARR (+2.1%), according to the latest data from HotStats. With occupancy levels declining by 3.0 percentage points, rooms revenue per available room (RevPAR) dropped by 2.7% to £63.74. A closer look into the rooms department shows an 18.3% increase to £7.68 in travel agent commission per occupied room compared to the same period last year.

Mixed performances were recorded in non-rooms revenues leading to a TRevPAR decrease of 1.8% and DOPPAR went down by 6.4% to £53.76. These results coupled with increases in overheads and payroll of 1.6% and 2.2 percentage points respectively, contributed to a GOPPAR decline of 12.0% to £29.80 representing a gross operating conversion of 33.4% for the month.

Glad all over Liverpool

Liverpool hoteliers on the contrary managed to register more positive movements for the month of January, with TRevPAR and GOPPAR increasing by 4.9% and 20.2% respectively, according to the latest data from HotStats.

Hotels in the city experienced a rise of 4.2 percentage points in occupancy albeit at the expense of ARR, which declined by 3.8%, and still delivered RevPAR growth of 4.4% to £37.02. With ancillary revenues showing substantial improvements, TRevPAR increased by 4.9% to £59.72. DOPPAR also rose by 11.4% thanks to efficient operating cost control and payroll decreasing by 0.6 percentage points. Despite overheads per available room increasing by 8.2%, GOPPAR still shot up by 20.2% to £8.85 representing a gross operating conversion of 14.8% for the month.

10/10/2014

UK Serviced Apartment Company 'Apple Apartments' launches in two new London locations

Launched in 2012 Apple Apartments now operates over 120 apartments, with 200 rooms, welcoming over 1,000 guests per week, and are fast becoming a UK leader in the serviced apartments sector. Apple Apartments has properties in Aberdeen, Belfast and in six London locations including: Canary Wharf, The Strand, Greenwich, Stratford & East Ham.

Apple Apartments newest locations are at Hyde Park and Kensington High Street, for information on these properties and other Apple serviced apartment locations please visit their website.

Short Let Consulting are proud to have supported Apple Apartments with their property expansion plans. Visit our consulting services page for details of our property finding services, for new and existing Serviced Apartment operators.


10/10/2014

UK serviced apartments sector continues to see growth in 2014

The first quarter of 2014 has shown that UK regional serviced apartments have seen a year-on-year increase in corporate demand of +10.2% and a +2.7% in occupancy growth to 72.2% according to STR Global and the Association of Serviced Apartment Providers.

The report also shows that London based apartments have pushed occupancy to 77.8% over the quarter and revPAR (revenue per available room) has grown by +2.2%. 

Corporate demand for serviced apartments has continued to grow throughout 2013 and into 2014 with many businesses focusing on cost control. Last year Savills reported that revPAA (revenue per available apartment) grew 16%, far exceeding that seen in the hotel market where REVPAR growth averaged 4.1% during the same period. Occupancy and rates also grew in the UK serviced apartment market in 2013 and is set to continue throughout 2014. 

According to one serviced apartment booking agency the number of corporate long stays (28+ nights) grow 4.99% to 17.59% year-on-year from January to June 2013 to the same period in 2014.

Serviced accommodation has been evolving since 2013 and has become a recognised sector in the UK. According to Savills the number of London units is expected to rise by 23.8% to 8,664 by 2015. The firm has reported that investment in serviced apartments in the UK totalled £123.5million, 5% of total UK hotel sales in 2013. From this, Savills predicts that UK investment in the market could triple by 2018.

The rise in popularity could largely come down to price. Hotel prices are set to increase by two percent after a flat growth rate in 2013, according to accounting firm Price Waterhouse Coopers (PWC) the popularity and growth of the UK serviced apartment market could increase further. The accounting firm continued to explain that the flat growth rate in the previous year was caused by the huge spike in hotel accommodation prices buoyed by the 2012 Olympics.

London continues to be the main focus, with areas Chelsea and South Kensington, City and East London and Central and West End becoming the most sought-after locations for corporate stays. 

Source ITCM : http://www.incentivetravel.co.uk/news/hotel/22702-uk-serviced-apartments-sector-continues-to-see-growth-in-2014

Visit the homepage for Short Let Consulting for advice with finding property and setting up serviced apartments in the UK.


09/10/2014

BRIDGESTREET GLOBAL HOSPITALITY NAMED 2014 “BEST SERVICED APARTMENTS” BY ASSOCIATION OF RELOCATION PROFESSIONALS

BridgeStreet Global Hospitality was recently recognized by the Association of Relocation Professionals as the recipient of the 2014 “Serviced Accommodation Award.” Judged by an independent panel of top relocation professionals, this award furthers BridgeStreet’s position as the top global provider of serviced apartments and an industry leader.


Introduced alongside BridgeStreet’s 2014 rebrand, this accolade recognizes the company’s widely lauded family of brands, which are leading the serviced apartment industry in addressing product clarification and service offering consistency. 

The award also commends BridgeStreet for its innovative business intelligence and reporting platform that allows clients to respond decisively to current market conditions and review historical data. However, it was glowing testimonials from a number of BridgeStreet clients that impressed the judges most.


View the full press release via this linkPress release by Chelsea Moore of Bright Red


Please visit the homepage for advice with setting up serviced apartments in the UK.


8/10/2014

The Association of Serviced Apartments (ASAP) – the trade associate for the serviced apartment industry – has unveiled plans to promote its Quality Assessment (QA) programme to guests.

James Foice, managing director of ASAP, said the decision was taken after a highly successful initial accreditation phase amongst ASAPs members, with 98% expected to complete the programme by November.


“Members recognise the importance of legal and statutory obligations, health and safety and that any property is accurately and appropriately marketed, and this provides a high level of confidence for guests booking a serviced apartment.”
Foice explained that the number of options for customers seeking accommodation is “mind-boggling, thanks in part to new sectors emerging as a result of the expansion of the digital economy, but it’s often hard for people to know what they are getting for their money.”


Foice said that he had been in discussion with a number of agents wishing to support the accreditation scheme by only offering ASAP-accredited apartments to their clients.


“Members recognise the importance of legal and statutory obligations, health and safety and that any property is accurately and appropriately marketed, and this provides a high level of confidence for guests booking a serviced apartment.”
ASAP represents over 74 members which own and operate more than 14,000 properties throughout the UK and Ireland.

View the full press release by the ASAP via the link below. Press release by Tom Davis


Please visit the homepage for more advice with setting up and standardising serviced apartments in the UK.






Ċ
Ben Davis,
8 Oct 2014, 13:54