AVERAGE SERVICED APARTMENT RATES RISING STEADILY
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.”