Average rates for serviced apartments in the UK have risen by 3.8 per cent over the last year, according to new figures from the Association of Serviced Apartment Providers (ASAP) and hotel data firm STA.
The research found that the average daily rate (ADR) rose to £139.08 across the UK helped by a 10.3 per cent increase in rates for London apartments which went up to an average of £185.58.
The sector also benefited from a 1.7 percentage point improvement in occupancy levels which increased to 79.2 per cent for the UK – London occupancy was up by 4.8 points to 81.5 per cent.
Outside London, regional ADR rose by 1.1 per cent to £90.27 despite a 1.4 point fall in occupancy to 76.9 per cent.
Thomas Emanuel, STR’s director of business development, said: “It is encouraging to see that the UK’s hospitality performance growth has extended to the serviced apartment sector, and it is quite clear that London is the driving force.”
The UK capital currently accounts for roughly 55 per cent of the UK’s serviced apartments.
James Foice, chief executive of ASAP, added: “After a challenging 2016, it’s good to see our sector delivering strong half-year results
“London’s performance is particularly impressive with the strong increase in leisure business a key factor in this growth.”