The average debt service coverage (DSC) ratio is 2.0 for serviced apartments in Western Europe, compared to 1.9 for hotels. The target build cost is between US$105,000 and US$115,000 per key. All rights reserved. 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. 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. 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. Serviced apartment sector World Research Ho Chi Minh City, Viet Nam FIGURE 2 FIGURE 1 Savills Research team Please contact us for further information Savills plc Savills is a leading global real estate service provider listed on the London Stock Exchange. 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. Global growth in serviced apartment numbers. In the UK, the serviced apartment sector first came into focus around 15 years ago as a response to a surge in demand from corporate travellers, who frequently found long-term hotel stays uncomfortable and impersonal. The investment landscape is represented by developers, operators and institutional investors. This report looks at the recent trends, discusses our 2019 lenders survey results and recent transaction evidence, and analyses the pipeline. 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. In France, Staycity is set to open its first resort-style property in Marne-la-Vallée, close to Disneyland Paris, in August 2019. The amount of waste generated by tourism amounts to 5% of global greenhouse gas emissions. ... JN Boutique Apartments Sector 6, Bucharest Budget options available. Amenities, housekeeping (normally minimum weekly) and a range of services for guests will be included and the cost per night will normally reduce, the longer the length of stay. 200 sq.ft. 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. The debuting properties are located in Sydney and New York, while the first European properties to be part of the brand will be announced at a later stage. 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. The serviced apartment sector in Europe is growing at a faster pace than that of traditional hotels, according to a new report from hotel consultancy HVS. 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. Whereas serviced apartments in Canary Wharf and the City cater primarily to business guests, serviced apartment accommodation in the West End and Ascott IREO City offers the 1 BHK serviced apartments, located in golf course extension road, Gurgaon. 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. What are serviced apartments? 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. Right from housekeeping, Wifi, TV, electricity and security. Radisson eyes EMEA expansion in serviced apartment sector. Brand & Management Selection and Contract Negotiations, Convention, Sports & Entertainment Facilities. Adagio has the largest pipeline with more than 50 hotel projects (just over 6,100 units) across Europe. Demand for serviced apartment accommodation remains vigorous across Western Europe. With the launch, BridgeStreet’s supply partnership of over 65,000 serviced apartments in 60-plus countries will be searchable from its website, with easy connectivity to the global distribution systems (GDS) that have traditionally been difficult for this sector to access. Serviced apartments have been around longer than most people think – making an impact, in fact, for over a decade. Although branding is becoming more important for lending purposes, it is less so in key destinations with established, somewhat self-sustainable demand generators. In terms of portfolio deals, M&G Investments, a London-based investment manager, purchased the long leasehold interest of a development site in Paddington for a reported £203 million. Our service apartments provide you all the amenities for a hassle free stay. The bedrooms mimic the safety and security of a womb and feature facilities such as muted lighting, blackout blinds, sound absorbing curtains and restorative scents. CHART 8: NEW SUPPLY PIPELINE ACROSS EUROPE – 2019-23 OPENINGS, Please note that these lists are not exhaustive This short survey consisted of three topics: (1) availability of debt, (2) lending parameters and (3) lending criteria. Ascott has launched Citadines Connect, a select-service apartment hotel brand designed for business travellers. We’ll work with you to go beyond the property transaction, and to shape the services you need to gain an edge in alternative hospitality investments. 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. Radisson Hotel Group has plans to more than double its serviced apartments portfolio across the EMEA (Europe, Middle East, and Africa) region by 2025. 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. A vast majority of the lenders currently active in the hotel sector have reported that debt for serviced apartments is available, although primarily in gateway cities in Western Europe. Demand for serviced apartment accommodation remains vigorous across Western Europe. These low financing costs, along with compressed margins and long amortisation periods, all act as factors that increase DSC ratios. 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. Our survey results confirm that the sector is becoming more mainstream. 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. Bridgestreet announced that it secured the operations of the newest apart-hotel: the ‘removable’ Stow-Away Waterloo. 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. 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. Furthermore, in 2018, Ascott acquired a 70% stake in Tauzia Hotel Management, one of Indonesia’s top five hotel operators, for approximately US$26 million. Unsurprisingly, London’s pipeline represents 39% of the total UK pipeline, followed by Manchester with around 16% of the pipeline and Edinburgh and Cambridge with approximately 10% of the UK pipeline, respectively. 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. ), 1 BHK Serviced Apartment for rent in Sector-108 Noidaserviced apartments , Sector-108 Noida ₹ 7,000 /month. CHART 1: PROPORTION OF LOANS GIVEN BY CHAIN-SCALE SEGMENT IN WESTERN EUROPE. Similar to previous years, the UK and Germany represent the vast majority of the total pipeline (32% and 25%, respectively). 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. 4,450 units of the pipeline should be complete before the end of 2019, followed by a larger number of openings in 2020 (10,000), 7,000 in 2021 and 2,200 in 2022. The fully furnished Serviced Apartments in Gurgaon will be the perfect spot to make you feel home away from home. 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. These serviced residences are essentially rental homes, apartments and flats that are fully furnished to give a complete hotel apartment feel. ... 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. 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. The serviced apartments and extended-stay sector is one of the fastest growing areas of hospitality accommodation in Europe. On a similar note, Marriott is also tapping into the home-sharing market with the launch of the Homes & Villas by Marriott rental platform in over 100 destinations across Europe, the USA and the Caribbean in May 2019. 6 Serviced Apartments: The fastest growing sector in hospitality. Lenders consider brands to provide an extra layer of security by delivering consistent and efficient service levels as well as providing access to their distribution systems, an invaluable benefit that large established hotel groups have over smaller ones. 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. Furthermore, Union Investment purchased a portfolio of four hotel development projects from Benchmark Real Estate Development for an undisclosed sum via a forward purchase agreement in October 2018. 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. Perch Serviced Apartments - Fully serviced and carefully curated for the discerning traveller. The brand will initially be established in the USA with the first hotels expected to open in 2021. 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. The company established in 1855, has a rich heritage with unrivalled growth. IREO Ascott serviced apartments provides the fitness center, swimming pool, retail & dining options, maintenance, and building services. Radisson to scale up investment in serviced apartments sector 1 minute ago Radisson Hotel Group has plans to more than double its serviced apartments … Compared with the mainstream hotel sector, the serviced apartment market has been less focused with brands and branding, but that is gradually changing. Officially, ‘Serviced Apartment’ is the umbrella term for a type of furnished apartment available for short-term or long-term stays, which provides amenities, housekeeping and a range of services for guests and where most taxes and utilities are included within the rental price. By TTG Asia / Posted on 1 December, 2020 13:58. The sector continues to innovate, with exciting new brands being introduced and traditional brands being reinvented. European RevPAR performance in 2018 indicates that the sector is still growing at a quicker pace than the traditional hotel industry. 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. 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.
2020 serviced apartments sector