The rise of the serviced accommodation market
The 2016 Global Cities Report, undertaken by Knight Frank, provides some interesting statistics regarding the rise of the serviced accommodation market. The report suggests that over the past 7 years, the volume of serviced apartments has risen by 80%. The report also says that there are more than 750,000 serviced accommodation properties to choose from around the world.
61% of these properties are located in the United States while 17% can be found in Europe. With respect to the United Kingdom, a study earlier in 2016 found the number of services accommodation properties to be close to 20,000 units, and this accounted for just over 3% of the UK accommodation supply. This may not be eye-catching figures, but it is notable enough to warrant discussion and it is the change from the state of the market a few years previously that makes these figures worth talking.
There is also enough evidence to suggest that the volume of apartments, and the demand for these properties, is on the rise. It shouldn’t be a surprise to learn that many hotels are now looking to break into this market, such is the impact it has had on their core services and offerings.
There are various reasons why demand has risen for serviced accommodation
Like most things in life, there isn’t just one reason why serviced accommodation is growing in popularity; there are a number of factors involved in this switch.
Businesses want a more affordable option for housing employees
One key reason in why there is a higher level of demand for serviced accommodation is that businesses are looking to reduce their expenditure on hotel stays, or capital purchases, for their employees. This option provides more flexibility for the firm, and the employee, while still providing all of the basic requirements a person will have when staying away from home.
Longer term guests are looking for something more akin to home
While businesses are looking to lower costs without compromising on quality, it can be said that employees who are staying in one place for a longer period of time prefer serviced accommodation to hotels. These properties feel more like home but they provide many of the benefits associated with a hotel. The fact that this style of accommodation offers a more home-like environment, as opposed to a hotel, is of great benefit for many individuals.
This means that individuals have more time to themselves but have assistance to help them settle in quicker. There is also a greater sense of freedom associated with these properties, so it is likely that individuals will feel much more at home in these properties, particularly when they are staying for weeks or even months at a time.
Young professionals value their time
There is also a sense that young professionals are opting for this style of accommodation as opposed to basic renting. There is certainly a blurring of the lines between a fully furnished property and serviced accommodation, but the higher standard of service and support on offer for this property type may be exactly what some people are looking for. Again, if a person has the finances to justify the additional cost, the additional benefits and features they receive will likely be all they need to be happy with their choice.
The serviced accommodation market in the UK, and around the world, is definitely on the rise and it looks as though this is a trend that will continue for the foreseeable future.