As reported elsewhere on this site, ASAP member Mansley recently acquired Strozzi Palace in the centre of Cheltenham, adding to the debate around serviced apartment accommodations vs traditional hotels.
The Strozzi Palace deal broker has descried it as: “indicative of a new breed of accommodation coming to the marketplace”; meanwhile Staycity is one operator eyeing a possible IPO when it hits its expansion target.
According to STR and ASAP, the serviced apartment sector in the UK saw full-year occupancy of 81% in 2016, higher than the hotel sector at 77.2%. Max Thorne of JLL has described aparthotels and serviced apartments as “very similar to a hotel model and that will open up opportunities for management agreements…and they are absolutely competing in the hotel space”.
But while serviced apartments may be competing for investors’ attention, this article discusses how they have yet to move into creating a place in the consciousness and heart of the traveller as many hotel brands have, creating loyal communities, which may be the game changer for the sector.