February 24, 2024

Serviced apartment sector sees continued growth

The serviced apartment sector has continued to grow its share of corporate accommodation spend despite the pandemic, says a new report.

According to the Global Serviced Apartment Industry Report 2022, 15% of UK businesses increased their overall use of serviced apartments during 2021 while 52% of corporates and 60% of TMCs say their use of serviced apartments for relocation purposes has increased since 2020.

This trend is set to continue, with 9% of companies having added non-hotel accommodation options to their travel programmes since Covid struck.

Other top-line findings include:

  • Business trips in 2022 will continue to be fewer in number but of a longer duration
  • The proportion of seven- to 14-night business trips in 2021 was double that of 2019
  • 39.2% of business trips in 2021 were of eight nights or more
  • Travellers now have an unprecedented level of accommodation choice as employers provide greater flexibility in travel policies
  • 23% of businesses now have formal agreements with serviced apartment or homestay brands
  • The global reach of the sector also continues to expand – 77% of global supply was in the US in 2007, compared with just 52% today
  • The global supply of serviced apartments and corporate housing now covers 17,054 locations
  • 68% of operators plan to open more apartments in existing locations – the highest since GSAIR began reporting
  • Sustainability, ESG and personal safety now head the priorities for both travellers and their employers.

During Q4 2021 and Q1 2022, supply shortages drove prices up by 10% for one-bed apartments, 30% for two-bed apartments and 40% for three-bed apartments compared to 2019.

SilverDoor Apartments Group CEO, Stuart Winstone, said: “Before we acquired The Apartment Service we regarded GSAIR as a jewel in their crown so we are delighted to bring the report into the SilverDoor family. We have exciting plans for GSAIR and look forward to ensuring the report continues to meet the needs of clients and partners alike.”