Serviced apartments in the UK – a growth sector?

Up until relatively recently there have been few alternatives to hotels for business or leisure travellers seeking longer‐term accommodation in the UK. While serviced apartments are well established in the USA and the Far East, the UK sector is in an embryonic stage. The current supply is dominated by higher‐end accommodation, with corporates providing the core area of demand. However experience in other countries suggests that the scale and profile of the market may be considerably broader. This paper details the current profile of the serviced apartment sector in the UK, focusing on London in particular, drawing on an interview survey with “new entrants” to the market. It also considers the factors influencing the potential supply of new units and the future drivers of demand. The paper concludes with a summary of the challenges and opportunities that may emerge in the UK serviced apartment sector over the coming years.