London, 7 December
ASAP and Savills have today released the headline results for the sector from their Operator Sentiment Tracker Survey (November 2017), which confirm that the sector has delivered a strong performance in 2017 and expects to deliver an even better performance in 2018, in spite of the challenging economic environment.
Over 40% of operators looking to accelerate their expansion plans in 2018
Average Daily Rate (ADR) & Occupancy up on 2016
Leisure market opening up strongly
The key findings for the UK serviced apartment sector will be shared with the industry today at the ASAP 2017 Serviced Apartment Convention in London, the flagship event for the sector which sees 400 delegates come together from 14 countries to hear the latest industry insights and debate future trends.
Brief headlines are:
- 47.7% of respondents are more positive about current business prospects.
- Optimism for the next 12 months remains robust.
- Operators confirm they are continuing to pursue expansion plans for 2018.
- 47.6% expect year end ADR to be up on last year.
- Demand from the leisure segment is increasing.
- UK demand expected to dominate.
- Challenges are the wider economic conditions, property acquisition costs and increased competition.
- Business Rates continue to pose a significant challenge to business over the next 3 years.