Serviced Apartment Updates 2018/2019: A Brief Summary
Each year The Apartment Service (TAS) release their Global Serviced Apartments Industry Report (GSAIR). Nearly 10,000 professionals including; agents, serviced apartment operators and corporates contributed to the latest report. I have had a read through this year’s report, pulling out a few interesting stats and areas of interest...
Main reasons for choosing a serviced apartment
The report suggested that one of the most common reasons for the selection of corporate housing was policy compliance for employers looking to accommodate staff. Other reasons included assignee preference, location, amenities on offer and allowing the assignee to feel settled and therefore more focused and productive. These reasons were found to be extremely important for all questioned, especially those on extended business travel or relocating for work.
Suppliers by region
TAS estimates that there are currently over 1 million serviced apartments worldwide - a 22% increase compared to two years ago when there were estimated to be around 820,000.
The Americas/Canada continues to dominate the top list of suppliers with over half the global supply of corporate housing (with over 54% or 550,000 units). Europe is the second largest supplier by region with almost 16% of units, however, it’s worth noting there remains a 40% difference between the largest and second largest suppliers.
It is estimated that the Global Travel Market is expected to rise to a total value of US $2.7 trillion by 2022. This report shows there was an increase in all global locations. Most noticeably, alongside the Americas/Canada and Europe, the Middle East has seen a large increase.
Operators reported that there will be an increase of rates by up to 13% in 2018/2019 with 65% of operators planning to open new properties within their local markets.
Recent research estimates that over 10,000 serviced apartments will be built in Europe between 2017 and 2020, which coincides with operator plans for expansion with the top 5 locations being; London, Europe, Vienna, India, Manchester.
Having read the report in full, I was not surprised by the rates of growth the industry has seen over the past two years. My contacts within the sector tell me it will not be slowing down anytime soon! Research shows that operators are continuing to increase their property portfolios; opening in new locations to meet market demands. Serviced apartments are already heavily relied upon by business travellers, relocators and even independent travellers – with the world growing ever more mobile this need is only set to increase. With this in mind, we will have to wait and see what’s in store for 2019!
Written by Amber Pittard – Global Account Manager – Global Mobility & Expatriate Services at Alchemy Recruitment Ltd.