UK: John Wagner, director of Cycas Hospitality, says 2016 will be a significant year for the UK serviced apartment sector.
Wagner, whose company operates several
Staybridge Suites properties across the UK, said: "This is going to
be the breakthrough year for the serviced apartment sector. In
2016, serviced apartments will take their place as a key player in
the hospitality industry. Serviced apartments, extended stay and
apart hotels are no longer the junior subset as evidenced by the latest research in from Savills and the
Association of Serviced Apartment Providers (ASAP)."
"The report confirms that serviced apartments are set to be the fastest growing sector in hospitality. National operators are expecting to increase the number of serviced apartment units they operate by some 122.3% while regional operators are expecting 82.2 per cent growth. ASAP is expecting the sector as a whole to grow by 8.4 per cent for both 2016 and 2017," he added.
Wagner continued: "Without doubt, this expansion all across the UK is an exciting milestone for the industry. It's fantastic to see openings in 2016 in secondary cities like York and Reading, as well as continuing growth in primary cities such as London and Birmingham. I am convinced that, above all, 2016 presents a clear coming of age for the UK serviced apartment sector. The growth potential of London's serviced apartments is attracting a number of new investors to the sector. According to Travel Intelligence Network's Mark Harris, the serviced apartment sector has 650,000 units in 9,000 locations around the globe. With keen interest from the bigger hotel investment and construction players, Harris agrees that the 'serviced apartment industry is on the cusp of big things, with an exciting future ahead'."
"More and more guests are now favouring alternative accommodation arrangements," says Wagner. "This has been encouraged by the rise of the shared economy. Additionally, the recent strengthening of Sterling against the Euro makes the value proposition of the extended stay apartment - 'the more you stay the less you pay!' - more attractive to European guests looking for the best offers, particularly in London. Finally, next year we will also see a number of hotel operators rolling out more sites occupied by two hotel brands. Cycas Hospitality were early adopters of this approach in London with the Holiday Inn London - Stratford City and Staybridge Suites London - Stratford City occupying one building at the site of the 2012 Olympics. There are many benefits to this - for starters you save costs on the building itself as the two hotels can share much of the behind-the-scenes infrastructure, many management and marketing synergies as well as, of course, one roof. Cycas is about to launch another dual brand hotel in Manchester that will see Staybridge Suites and Crowne Plaza share the same building and we are confident that this approach will appeal to a variety of guest segments," concludes Wagner.