Global serviced apartment inventory hits one million unit milestone

George Sell By George Sell
3 weeks ago | Updated 3 weeks ago

UK: The number of serviced apartment units globally is up 23 per cent in the last two years to more than a million, according to the latest report from The Apartment Service.

The seventh annual Global Serviced Apartments Industry Report (GSAIR), which was launched in London last night, estimates there are now more than 1,022, 984 serviced apartments worldwide, (with a further 73,563 corporate housing units) in more than 13,164 locations. This compares with 826,759 apartments in 10, 777 locations two years ago. These figures represent a 23/7 per cent growth in available inventory.

The report surveyed 6,000 corporate clients, 2,000 serviced apartment operators and more than 1,800 agents. Among the key findings are:
• More than half of corporates are using serviced apartments for business travel, with 40 per cent allocating up to 20 per cent of their accommodation budget to extended stay solutions
• Serviced apartments have found their niche as a stand alone category and are featuring less in the standardised annual hotel RFPs
• 37 per cent of corporates are now mandating the use of a specialist agency channel, alongside an RMC or TMC for their apartment bookings
• 47 per cent of corporates allow their travellers to independently select or book their own long stay accommodation
• Corporate are continuing to leverage long-stay savings of between 17 and 29 per cent compared with their hotel programme spend
• More than a third of corporates allow travellers to use short term rent platforms such as Airbnb
• In 2008, the US extended stay sector made up 77 per cent of global inventory - this year that figure is down to 55 per cent

Charlie McCrow, CEO of The Apartment Service, said: "The growth of supply in the global serviced apartment industry continues to increase in speed and as predicted in the last edition of GSAIR. There is still huge potential for growth and new opportunities in many destinations."

Jo Layton, MD group commercial sales, added: "As the sector continues to mature and grow, the key requirements of compliance, transparency, analysis and cost-effectiveness - added to ease of booking - are becoming even more apparent. Open debate and continued communication with all stakeholders is important to drive the continued development of this vibrant sector forward."

For more information on the report, which was compiled for The Apartment Service by the Travel Intelligence Network, click here.

Be in the know.

Subscribe to our newsletter »

Our Events

Thank you sponsors

Subscribe to our Newsletter »