The latest ASAP/Savills sentiment survey has been released today, showing that while overall sentiment in the serviced apartment sector has dropped since our last survey in November 2019, as a result of the disruption caused by Covid-19, the recovery outlook remains encouraging.
Over half (53.8%) of respondents expect occupancy rates to reach pre-Covid levels during 2021, and nine out of 10 (87.2%) respondents believe serviced apartments are better positioned to recover from Covid-19 compared to the wider hotel industry.
Key points for optimism include professional cleaning and higher hygiene standards in serviced apartments being a reason to support a stronger recovery, along with contactless check-in, more space than in traditional hotels and better working-from-home facilities for corporate guests.
25% of responders expect the bulk of demand to be split equally between leisure and corporate guests, with a further 15% projecting the bulk of demand will come from leisure travellers.
Key challenges are the wider economic conditions and international travel restrictions, enforced social distancing and reduced corporate travel budgets. Most think online portals and reviews will feature highly in terms of marketing and recovery over the next 12 months or so.