Serviced apartments are continuing their quick recovery in the UK with more than half of operators saying they are already back to pre-Covid occupancy levels.
The latest report by estate agents Savills and the Association of Serviced Apartment Providers (ASAP) found that 58 per cent had seen occupancy recover to 2019 levels, while 80 per cent of respondents expected to get back to pre-pandemic occupancies by the end of this year.
Marie Hickey, director at Savills’ commercial research team, said: “Serviced apartments have been the better performing segment of the wider hospitality market due to their typically leaner operating model and self-contained accommodation, enabling resilience through some of the recent challenges.”
Despite the strong recovery, serviced apartment providers still face ongoing challenges such as staffing, the risk of further international travel restrictions and rising energy costs, which were all cited in the survey as “slight” or “significant” issues in the next three years.
James Foice, ASAP’s CEO, added: “Our members have been telling us for some time that they're feeling increasingly optimistic about the coming months and years, as restrictions ease and both business and leisure guests return to travel. To see this reflected across the sector is very heartening.”
The survey also highlighted the growing importance of sustainability in the serviced apartment sector, with 42 per cent of operators saying that their ESG (environmental, social and governance) credentials were important in driving demand for their properties.
Energy efficiency will also be an important factor for the majority of operators (61.5 per cent) when acquiring new properties to boost their portfolios.
“The post-pandemic landscape offers a wonderful opportunity to put sustainable practices front and centre as the sector continues to expand,” added Foice.