A new report commissioned by the UK's Association of Serviced Apartment Providers (ASAP) has shed light on the extent of the serviced apartment sector in the country as the organisation aims to increase its influence on policymakers and regulatory decisions.
Conducted by Bonard, the report found the UK has more than 56,700 serviced apartments – nearly half of which are located in London – and that business travellers account for 45 per cent of guests. Professionals relocating to the UK account for a further 23 per cent of guests.
Commissioned in response to the UK government's consultation on short-term lets regulation, the study sought to establish a clear definition of the sector and quantify its economic and social contributions, which amount to £1.7 billion and some 8,750 jobs.
Serviced apartments have emerged as one of the most rapidly expanding real estate asset classes within the UK, according to the report, but despite their growing prominence, the sector "lacks commensurate data and representation compared to other accommodation sectors".
The research found that of the UK's 56,700 serviced apartments, around half – 28,500 across 1,400 buildings – are managed under a brand. ASAP members account for 41 per cent of such establishments. The rest of the market is "particularly fragmented and comprises a long tail of independent operators and 'single key' offers on the market".
After London, Manchester (6.3 per cent market share) was the city with the next most serviced apartments in the UK, followed by Liverpool (4.8 per cent) and Edinburgh (4.4 per cent). On average, ASAP member operators manage 29 apartments per property, compared to the overall UK average of 19 apartments per property.
The report recommends that, moving forward, further professionalisation of the sector can be achieved through the introduction of a "mandatory, light-touch property registration scheme that should include the entire accommodation industry". This would help level the playing field for all operators, including those managing apartments that might not be compliant with the minimum standards, stated the report.
"The hotel sector is long-established and understood; flexible living options less so. What ASAP's first ever study reveals is that serviced apartments are the preferred option for many FTSE 100 and Fortune 500 businesses, insurance companies and film production crews, and provides flexible options for modern travellers to add a leisure element to business stays," said James Foice, ASAP CEO.
"We're currently working with policymakers to make sure the value and contribution our members make to the economy are understood, when decisions are being made around changes to regulation and planning."