A strong corporate market in Birmingham together with a lack of supply has resulted in a quarter one performance of 83.1% for the city – an increase of +26.8% – and by far the best performance for the sector in the UK. Liverpool has also delivered a very strong performance achieving 77.9%, a +11.7% increase in occupancy.
Thomas Emanuel, STR Global, who compile the monthly occupancy survey, confirms:
‘The UK as a whole (excluding London) performed well achieving occupancy of 78.2%, representing a strong +7.6% increase on 2014 thanks to the general improvement in the economy, coupled with flat supply. The average daily rate of £83.13 represented a small 1.4% increase on 2014.’
London down 2% as supply increases
‘By contrast the occupancy level for serviced apartments in London dropped marginally by -2.0% to 77.8% for the first quarter, purely down to an increase in supply. Demand is still showing positive growth, as are rates, but the supply is impacting occupancy. However the sector commanded a very strong average daily rate, achieving £160.55 which represents a +7.7% increase on 2014 (compared to the hotel sector which achieved an ADR of £127.96).’
James Foice, Managing Director of the ASAP commented:
‘It is very encouraging that, despite the increase in supply particularly in London, demand is strong with the consumer clearly continuing to see the many advantages of using serviced apartments, in particular appreciating the greater flexibility, more space and the home from home experience. The ADR performance is very positive and we remain optimistic that the rest of the year will be another record breaking year for the sector across the UK.’
For more information about the ASAP click here
For more information about the STR Global click here