AV­ER­AGE SER­VICED APART­MENT RATES RIS­ING STEADILY

The Business Travel Magazine - - The Review -

THE av­er­age daily rate (ADR) for ser­viced apart­ments across the UK rose last year, but growth in Lon­don was markedly steeper.

Year-end fig­ures from data and an­a­lyt­ics spe­cial­ist STR show av­er­age rates in the cap­i­tal city rose 9.8% to £198.74 but across the rest of the UK crept up only 1% to £93.71.

Oc­cu­pancy lev­els of 81.7% for the year were up by just 0.2% on 2016. The fig­ure was boosted by Lon­don, where oc­cu­pancy was up 2.2% as op­posed to a 1.7% de­cline across the rest of the UK.

Manch­ester ex­pe­ri­enced a strong in­crease in sup­ply over the course of 2017 which con­trib­uted to a 6.3% de­cline in oc­cu­pancy and a 3.4% drop in ADR, to £100.09. Ed­in­burgh, mean­while, posted 0.4% growth in oc­cu­pancy and 7.3% rise in ADR, to £119.21.

Thomas Emanuel, Di­rec­tor of Busi­ness De­vel­op­ment for STR says: “Strong de­mand growth and the abil­ity of op­er­a­tors to drive rate growth in sev­eral mar­kets are pos­i­tive in­di­ca­tors for how the sec­tor will con­tinue to adapt as its in­ven­tory ex­pands.”

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