UK: STR and ASAP statistics have revealed full year occupancy of 81 per cent for the UK serviced apartment sector in 2016.
2016 sectored performance was only slightly down on 2015 - the
UK as a whole was 1.6 per cent down and London 2.4 per cent
The average daily rate (ADR) for London increased to £181.68, a 3.3 per cent increase on 2015 and for the UK as a whole it was £141.40, a one per cent increase on 2015.
Key cities performed particularly well, above the UK average. Manchester was the top performing city with 86 per cent occupancy (average daily rate of £103.60, up 6.5 per cent on 2015), followed by Edinburgh at 84 per cent (average daily rate of £111.10, up 2.9 per cent year-on-year) and Birmingham 83.6 per cent (average daily rate £84.34).
Thomas Emanuel, director of business development at STR, said: "Despite seeing small year-over-year declines in occupancy, ADR grew across the UK, and overall performance was steady. The UK's serviced apartment sector recorded higher occupancy levels (81 per cent) that the hotel sector (77.2 per cent). The occupancy levels achieved for serviced apartments across all major UK cities in 2017 was again incredibly impressive, with all tracked markets, with the exception of Aberdeen, registering occupancy levels above 80 per cent. When compared internationally to the wider accommodation sector, these are levels we would expect to see in global gateways, as opposed regional markets, which really does showcase the underlying strength of the serviced apartment sector across the UK."
James Foice, chief executive of the ASAP, said: "I'm very pleased to see our UK serviced apartment sector perform so strongly in 2016 delivering full year occupancy of 81 per cent. While the wider economic picture remains uncertain for 2017, anecdotal evidence from many operators shows that they are experiencing a stronger start to the year compared to 2016. And a number of operators are seeing an increase in bookings from inbound leisure visitors, particularly from the USA and China, with the weakness of sterling driving more demand."