A recent research commissioned by The Association of Serviced Apartment Providers (ASAP) estimates that there are more than 56,700 serviced apartments in the United Kingdom.

According to a recent independent review by Bonard titled “An Independent Review of the Role and Value of serviced Apartments in the UK” the serviced accommodation industry directly supports 6.050 jobs, generates £1.7 billion for the UK economy, and has UK business travellers as its major user base (45%).

In the hotel industry, serviced accommodation are growing faster than any other kind of lodging for UK business travellers.

Serviced Accommodation usually offer additional room and ergonomic furnishings so you may work as comfortably as you would in an office.

UK business travellers frequently have extended stays abroad, and serviced apartments are well-known for providing a home away from home. Typically, rooms are 30% larger than those in hotels and come equipped with extra home comforts like dining tables, couches, and coffee makers.

ASAP CEO James Foice said: “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.”

“We’re currently working with policymakers to ensure the value and contribution our members make to the economy are understood when decisions are being made around changes to regulation and planning. When guests stay in serviced apartments they invest in the local economy, restaurants, gyms, shops and theatres; we must avoid unintended consequences for this professional sector when legislation changes.”

In the UK, 87% of serviced accommodation are located in England, with 9% located in Scotland. Wales and Northern Ireland have not yet developed a more substantial supply, at 3% and 1%, respectively.

81% of the market supply is comprised of the top 20 cities in the UK, with London accounting for 45% of this total.

Edinburgh, Manchester, and Liverpool come next with market shares of 6.3%, 4.8%, and 4.4%, respectively.

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.

Conclusions

The service accommodation industry has experienced remarkable growth and has attracted higher investment levels in 2024 because to its continuous attraction to both leisure and UK business travellers. This is probably going to keep happening, leading to an increase in the number of serviced accommodation options in key UK cities and other locations.

If you are interested in learning more, please go here to read the complete report.