European serviced apartment sector looks to the future with confidence

George Sell George Sell Uploaded 14 July 2017


UK: The week’s Serviced Apartment Summit Europe saw the publication of the first Serviced Apartment News European industry sentiment survey.

The survey, which drew responses from operators and service providers from across Europe, revealed a general air of optimism across the continent, despite the uncertainty caused by Brexit and other geopolitical events.

Some of the main highlights of the survey include:
• More than 60 per cent of those polled are more optimistic about the sector than this time last year
• 64 per cent are more optimistic about their own business than at this time last year
• 60 per cent of operators are only in one country at present, 25 per cent in more than one country, 14 per cent are planning to expand to a new country
• 63 per cent of operators have taken on new units in past 12 months, 79 per cent are planning to take on more in the next 12 months
• Amsterdam, Germany and Dublin were the three markets respondents think will see the most growth over the next 12 months
• London, Paris, Spain are the markets tipped to struggle over the next 12 months
• 82 per cent think the sharing economy has been broadly beneficial to the serviced apartment sector, 55 per cent of operators polled are listing on Airbnb or similar
• 44 per cent of operators have introduced new product or altered existing product to be more attractive to millennials/younger travellers; a further 23 per cent haven't yet but are planning to
• 60 per cent of operators have units in mixed - use developments, the same number think mixed-use will become more important to them
• OTA v direct bookings over last 12 months - 33 per cent have had more direct bookings, 29 per cent had more OTA business, 38 per cent about the same
• 47 per cent of operators expect the proportion of leisure business to increase over next 12 months
• The biggest challenges companies face over next 12 months: Brexit, development opportunities, finding staff, increasing occupancy, business legislation

George Sell, editor of Serviced Apartment News, said: "It's heartening to see so much optimism among European serviced apartment and extended stay industry professionals. Despite a range of factors causing general economic uncertainty, a significant majority of operators are more optimistic about the sector in general and their own business than they were this time last year, and almost 80 per cent are planning to grow their portfolio ver the coming year. What's more, as a barometer of the health and expected growth of the sector, more than 80 per cent of suppliers and service providers have seen an increase in business from the serviced apartment sector, and a very similar number expect to see more growth again in the next 12 months."

To see the results in full click here.


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