Savills releases latest UK serviced apartment report

George Sell By George Sell
02 December 2014 | Updated 02 December 2014

UK: Savills has released its Q4 2014 report in to the UK serviced apartment sector.

The main findings of the report are:
• Categorisation of the sector along operator and brand lines remains difficult. Greater branding in the sector is likely to resolve this boosting consumer and investor confidence.

• Adoption of Clause 34 as part of the Deregulation Bill is unlikely to have a significant impact.

• Expansion in the regional cities is picking up pace driven by the aparthotel brands.

• London remains the primary focus for expansion with approximately 1,700 units in the development pipeline.

• Year-to-date, the regions have outperformed London in terms of occupancy and rate growth.

• Lack of institutional grade stock continues to limit transaction activity.

• Acquisition of the Adagio Whitechapel site will provide the best indication to date of prime yields in the
sector. Savills expects this will be in line with that seen for hotels.

James Bradley of Savills Hotels said: "Further brand development will be vital to improving investor and lender confidence in the sector."

To download the full report click here.

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