This report looks at the recent trends, discusses our 2019 lenders survey results and recent transaction evidence, and analyses the pipeline. ( 18.58 sq.m. The rooms are designed to encourage REM-rich[1] sleep - stimulating brain activity, promoting learning and creating dreams. We would like to thank all of the survey participants for their generous input into the study. Brand & Management Selection and Contract Negotiations, Convention, Sports & Entertainment Facilities. Due to the sector’s increasing popularity, the industry has already reached maturity in the Americas, Middle East and Asia, leaving Europe and the UK particularly underpenetrated. ... Ascott also invested a further £26 million in a joint venture with Tujia to operate serviced apartments located within the key growth cities of China. This alternative type of accommodation is becoming increasingly popular among corporate and leisure travellers worldwide, as it bridges the gap between the AirBnB, hotel and residential markets. Sign up to our newsletter to receive the latest serviced apartment news, views and updates on our current opportunities. Radisson eyes EMEA expansion in serviced apartment sector. Recent single asset transactions are shown in Chart 7. European RevPAR performance in 2018 indicates that the sector is still growing at a quicker pace than the traditional hotel industry. Furthermore, Adagio is testing a ‘smart-apart’ concept, aimed to be more connected and modern in terms of architecture and design, that is planned to be deployed in the Adagio Paris Bercy in 2021. Compared with the mainstream hotel sector, the serviced apartment market has been less focused with brands and branding, but that is gradually changing. Derag Livinghotels and Adina represent the two brands with the largest number of operating These advancements manifest in the spread of the once business-world dominated sector of serviced apartments: stylish and comfortable alternatives to boutique hotels. Interested to rent serviced apartments.Placed at sector-68 gurgaon.Nice furnished enhancing decorit has spacious 1 bedroom and 1 bathroom. Similar to previous years, the UK and Germany represent the vast majority of the total pipeline (32% and 25%, respectively). Notably, the brand is expanding its horizons outside of Europe (not accounted for in our analysis) with destinations such as the UAE, Saudi Arabia and Morocco. We refer to ‘serviced apartments’ as a catch-all term for purpose built apart-hotels (with C1 use class) and residential buildings re-purposed for short-term lets (with C3 use class). Park Serviced Apartments Gurgaon – We have taken immaculate care to ensure that architectural design and layouts of all Service Apartments in Gurgaon ensure that occupants can have a comfortable extended stay experience, complete with spacious living for a home-like comfort. IHG has announced its third extended stay brand – Atwell Suites. Staycity’s pipeline is just under 4,800 units in Europe, primarily in the UK and Ireland, but also in Germany, France and Italy. The brand will initially be established in the USA with the first hotels expected to open in 2021. The aim is to open eight to 12 properties across the UK by 2023, adding to Quest’s existing portfolio of over 170 properties throughout Australasia. New brands continue to emerge, and over 70% of operators are planning new properties, creating substantial demand for C1 and C3 buildings across the UK and Europe. The target build cost is between US$105,000 and US$115,000 per key. While debt is available for acquiring existing serviced apartment businesses, the appetite for development financing is smaller; just over half of the participants in our lenders survey are willing to issue loans to such projects. Hotel developers are used to working with management contracts, but landlords and investors can now benefit from the guarantee of long-term leases provided by serviced apartment operators. Although branding is becoming more important for lending purposes, it is less so in key destinations with established, somewhat self-sustainable demand generators. Revenue per available room (revpar) for serviced apartments increased by 7% last year, compared with 5% for hotels, across Europe. The 20-room property is built using repurposed shipping containers, offering space of around 18 m², which allows the entire hotel to be relocated if needs be. The 675-room portfolio includes two proposed Super 8-branded hotels and two planned long-stay formats by Hyatt House and Adagio Access, all of which will be operated under long-term leases. sector for investors We are the independent leader in Serviced Apartment real estate investment advice. The hotels are set to open by 2021. The Serviced Apartment Sector Explained. In May 2019, OYO announced the acquisition of the Amsterdam-based holiday rental company @Leisure Group from German media group Axel Springer for an estimated €369 million. The property will feature 284 apartments, 22 holiday villas, an outdoor swimming pool, a café and a restaurant. The fully furnished Serviced Apartments in Gurgaon will be the perfect spot to make you feel home away from home. In 2017, OYO launched OYO Homes, a marketplace for short-term managed apartment rentals similar to Airbnb, which has more than 15,000 apartment and villa units globally. Owing to strong performance in the serviced apartment sector over the last couple of years, the respondents indicated a loan to value (LTV) ratio ranging from 50% to 65% for serviced apartments in primary cities, an average of 60%. During the last 12 months, the serviced apartment sector in Europe continued to see strong momentum in both demand and supply. Much has been announced in terms of product and brand expansion in the past year; here we take a look at what has actually materialised. Large international brands are realising the sector’s potential and are creating and evolving new brands to penetrate the market. Meanwhile, the industry continues to innovate with exciting new brands being introduced or traditional brands reinvented. The London serviced apartment market saw a steady year-on-year increase in both occupancy and average rate in 2018, resulting in a RevPAR growth of around 4.0%, (compared to the performance of the hotel market at 3.0%); The regional UK markets experienced a slight increase in occupancy at a rate growth above inflation, resulting in a RevPAR growth in 2018 of 3.5% (compared to the performance of the hotel market at 1.5%); The rest of the European markets (excluding the UK) recorded faster growth in both occupancy and average rate, resulting in significant RevPAR growth of 7.0% in 2018. Adagio’s new concept ‘The Circle’, a programme intended to create a more modern and dynamic identity, such as redesigned public spaces, shared kitchens and co-working spaces has been rolled out in over 20 apart-hotels so far. Demand for serviced apartment accommodation remains vigorous across Western Europe. Your opinions and experiences are crucial in facilitating understanding of this thriving sector. This project is arguably one of the most environmentally conscious, innovative and affordable hospitality projects in London and is planned to be applied on a larger scale in Manchester (172 units) and Birmingham (75 units) over the next three years. However, these ratios are highly dependent on the covenant strength of the developer, operator, brand or investor. By TTG Asia / Posted on 1 December, 2020 13:58. In 2018, Adagio opened its first London property in Brentford and recently signed a second property, located on Whitechapel Road, that is expected to open in 2021. The hotels will consist of mainly studios, ranging from 18 m² to 21 m². Next came the rise of AirBnB which introduced a viable alternative to hotels and acted as a catalyst for the serviced apartment sector to flourish. The properties are planned to be ‘all-studio’ suites with kitchenettes, while the public areas will include limited food and beverage offerings, flexible meeting space and ‘huddle areas’, as well as private and public working spaces. Radisson Hotel Group has plans to more than double its serviced apartments portfolio across the EMEA (Europe, Middle East, and Africa) region by 2025. Serviced apartments account for 9% of the total hotel loan portfolio in Western Europe. The serviced apartment sector offers fully furnished apartments which will always include kitchen facilities, as well as a living, sleeping area and a bath/shower room, and are available for short-term or long-term stays. OYO Hotels & Homes, India’s largest hospitality group and one of the fastest growing hotel companies in the world, has rapidly expanded in the UK since its debut in October 2018, spanning over 1,400 rooms to date. OYO is arguably tapping into a niche area, sandwiched between co-living and serviced apartments, and should be considered as a serious contender within both sub-sectors. Alternative concepts – co-living, co-working, student-accommodation, home-sharing, and so forth – are merging with the serviced apartment concept, creating hybrids as a response to changing demand behaviours. This launch follows AccorHotels’ acquisition of Onefinestay in 2016 and Hyatt’s temporary collaboration with Oasis (which ended in October 2018 following the acquisition of Oasis by Vacasa), adding new ‘layers’ to its core competencies. The two hotels planned to be built will be operated under lease agreements with Premier Inn-owner Whitbread and Staycity for 30 years. What are serviced apartments? Aparthotels/serviced apartments have some hotel facilities like a reception desk but are self-catered with a place to cook (e.g. ), 1 BHK Serviced Apartment for rent in Sector-108 Noidaserviced apartments , Sector-108 Noida ₹ 7,000 /month. The UK and Germany represent the vast majority of the total pipeline (similar to the hotel pipeline), although the market continues to experience further diversification in secondary and tertiary cities. .Want to rent it for rs 35000.It is a 0-1 years old property construction.It is located near to main road and it have a market,shopping compex near by. RevPAR performance in 2018 in Europe indicates that the sector is still growing at a quicker pace than the traditional hotel industry. The development pipeline continues to accelerate across Europe and is set to approach 23,600 additional units by 2022, making it one of the most active sub-sectors in the hotel industry. A more detailed and extensive list of recently opened properties and planned new supply can be found in Charts 8 to 11 at the end of this report. Notably, the brand is expanding its horizons outside of Europe (not accounted for in our analysis) with destinations such as the UAE, Saudi Arabia and Morocco. We urge more operators, investors and lenders in the sector to recognise the value of sharing data to enable serviced apartments to continue to gain more attention from potential investors. This deal includes approximately 20,000 units across Indonesia, Malaysia and Vietnam, with half currently under development, putting Ascott’s total portfolio at more than 90,000 units globally. We have it all covered! These low financing costs, along with compressed margins and long amortisation periods, all act as factors that increase DSC ratios. In the following Q&A, we attempt to shed some light and clarify some key concepts. This suite-style accommodation usually has more than 10 units per property. The most important issue would be for serviced apartments to become more sustainable and maintain their profitability as well as providing an added value to their customers. 4 Focus On: The London Serviced Apartment Sector The areas with the largest concentration of serviced apartments in London are Westminster, Kensington & Chelsea and Canary Wharf. Service apartments brought to you by Spectrum@Metro at Sector 75, Noida is a blessing in disguise to business and leisure travellers. The Global Serviced Apartments Industry Report 2018-2019 estimates that growth in serviced apartments has risen to 1,096,547 worldwide, while the number of desinations in which serviced aparthotels are located has risen by 22%, which shows that operators are expanding in both new and esisting locations. 2018 Germany is the second largest Serviced Apartment market in Europe, with 11, 400 Serviced Apartments being located in key hubs Frankfurt, Munich and Berlin. These serviced / vacation rentals offer a wide selection of – budget apartments or luxury serviced apartments accommodations in Gurgaon that are available for both short and long term rentals. The sector continues to innovate, with exciting new brands being introduced and traditional brands being reinvented. All rights reserved. Also this year, Staycity will open properties in Edinburgh, Manchester and Berlin, as well as making its entry into Italy in Mestre (Venice), contributing to the group’s target of having 15,000 apartments by the end of 2023 (currently around 2,000 units). In the following Q&A, we attempt to shed some light and clarify some key concepts. The serviced apartment market in Germany is experiencing a changing environment with increasing support from international brands marking their entry and expansion into the German market. This Service Apartment is … There have been a limited number of serviced apartment transactions and there is relatively little transparency in terms of sales prices. The difference compared to traditional hotels, shown in Chart 2, reflects the perception of risk around serviced apartments to be somewhat higher and thus more conservative maximum LTVs are applied. This deal included 30,000 holiday homes in 13 European countries, as well as its online operating platform with more than 85,000 units. BMS Group offers Luxurious and well Furnished Home Stay Service Apartments on Corporate Lease featuring stylish, comfortable and secure city living just like the private Apartments lifestyle. The sizes of the planned projects vary from 15 to 457 units, with an average of 137 units. It will be a new-build brand aimed at a pricing point below Staybridge Suites and tailored towards stays of four to six nights. ... JN Boutique Apartments Sector 6, Bucharest Budget options available. The sector continues to innovate, with exciting new brands being introduced and traditional brands being reinvented. This attitude mirrors banks’ perception of the broader hotel market with more cautious lending for new developments and some concerns of possible oversupply, particularly in some parts of Western Europe. We urge more operators, investors and lenders in the sector to recognise the value of sharing data to enable serviced apartments to continue to gain more attention from potential investors. We make the following comments on market-specific performance. A Savills report in October said London has 1.6 serviced apartments per 1,000 business visitors compared with 5.7 for New York and 5.3 for Hong Kong. However, recent transactions such as the acquisition of SACO by Brookfield are thought to result in an increase in awareness, security and transparency for the sector, as serviced apartments are starting to be perceived as an investor-friendly asset class. Given the importance of debt parameters for hotel and serviced apartment investments and developments, we surveyed leading Western European banks that are active both nationally and internationally. Debt is available for all project types, although primarily in Western Europe so far, leading to the increased popularity of serviced apartments as an alternative real estate investment. The serviced apartment sector offers fully furnished apartments which will always include kitchen facilities, and are available for short-term or long-term stays. This is followed by Saco (1,500), Adina (1,150), Residence Inn (1,000) and Citadines (900). Germany’s development distribution is well diversified across cities such as Frankfurt (20%), Berlin (15%), Hamburg (11%), Düsseldorf (10%) and Munich (9%). The Premier Inn will have 373 rooms while the Staycity property will offer an aparthotel of 247 studios and one-bedroom units under its premium brand Wilde Aparthotels by Staycity. Global growth in serviced apartment numbers.
2020 serviced apartments sector