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. 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. 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. 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. 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 pipeline will initially be focused on the Asia-Pacific region, with the first signed deals in Haikou and Changchun in China. Germany’s development distribution is well diversified across cities such as Frankfurt (20%), Berlin (15%), Hamburg (11%), Düsseldorf (10%) and Munich (9%). 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. However, these ratios are highly dependent on the covenant strength of the developer, operator, brand or investor. 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. Officially, âServiced Apartmentâ 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. 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. Lending criteria for serviced apartments remain broadly similar to those of traditional hotels where branding and location remain two of the key lending requirements. The sizes of the planned projects vary from 15 to 457 units, with an average of 137 units. Our custom-designed Ivory serviced residences are located in Sector 38 near the Medanta Hospital & Sector 51 near Artemis Hospital â offering Studio Apartments, One Bedroom, Two Bedroom & Three Bedroom Serviced Apartments that have beautifully appointed rooms epitomizing luxury and a distinctive feeling of style and comfort. Welcome to EXE Serviced Apartments Gurgaon â professionally managed executive service apartments in the prime DLF area of Gurgaon, a short drive from most of the primary business hubs like DLF Cyber City, Udyog Vihar, Unitech Cyber Park, MG Road, Infocity & Golf Course Road.. Ascott IREO City offers the 1 BHK serviced apartments, located in golf course extension road, Gurgaon. 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. In the first quarter of this year, Hilton opened 23 extended stay hotels and The Ascott Limited, the world’s largest provider of extended stay, announced their target to double their global portfolio from 80,000 to 160,000 units by 2023. RevPAR performance in 2018 in Europe indicates that the sector is still growing at a quicker pace than the traditional hotel industry. 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. Our service apartments provide you all the amenities for a hassle free stay. Aparthotels/serviced apartments have some hotel facilities like a reception desk but are self-catered with a place to cook (e.g. The target build cost is between US$105,000 and US$115,000 per key. 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. 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. a kitchenette). Interestingly, independent developments are gaining strong development momentum with more than 4,300 units in the pipeline, unsurprisingly primarily in gateway cities in the UK and Germany. In the event that you intend to remain for a short or long in Gurgaon, here you find your dream serviced apartment in Gurgaon for rent. ( 18.58 sq.m. 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). 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. These advancements manifest in the spread of the once business-world dominated sector of serviced apartments: stylish and comfortable alternatives to boutique hotels. The property will feature 284 apartments, 22 holiday villas, an outdoor swimming pool, a café and a restaurant. Sign up to our newsletter to receive the latest serviced apartment news, views and updates on our current opportunities. In the following Q&A, we attempt to shed some light and clarify some key concepts. With data extracted from our 2018 European Hotel Lending Survey, an indicative breakdown of loans given by chain-scale has been estimated. We have it all covered! This is followed by Saco (1,500), Adina (1,150), Residence Inn (1,000) and Citadines (900). While debt is available for existing serviced apartments, the market for development financing is smaller; just over half of the participants in our survey are willing to issue loans to such projects. We would like to thank all of the survey participants for their generous input into the study. 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. 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. ... 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. While these figures might seem relatively high, it is important to keep in mind that banks are operating in a very low interest rate environment. Serviced apartments have been around longer than most people think â making an impact, in fact, for over a decade. This year’s report looks at the recent trends, discusses our analysis of the 2019 lenders survey results and recent transaction evidence and provides an outlook in terms of pipeline. Cuckooz entered a partnership with sleep specialist Simba and experience and atmosphere curators Studio Stilton to develop ‘sleep-centric’ rooms in London. The average debt service coverage (DSC) ratio is 2.0 for serviced apartments in Western Europe, compared to 1.9 for hotels. Interestingly, the allocation to serviced apartments is only marginally smaller compared to luxury and economy hotels. Ascott has launched Citadines Connect, a select-service apartment hotel brand designed for business travellers. 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. The following chart presents an overview of the recent occupancy and average rate performance in Europe, as provided by the main operators in the market. Copyrights © 2020 All Rights Reserved by HVS, Please note that these lists are not exhaustive. CHART 1: PROPORTION OF LOANS GIVEN BY CHAIN-SCALE SEGMENT IN WESTERN EUROPE. 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. Every single fundamental need like clean drinking water, great space around, electricity with full power backup, and so forth are kept with care. The serviced apartment sector in Europe continues to see strong supply and demand momentum. Emphasising the importance of the corporate travel market to the serviced apartment sector, Harris said that usage of serviced apartments by UK companies has grown 86 per cent, with 60 per cent of UK corporate travel policies including serviced apartments, a figure which rises to 77 per cent of TMC-managed accounts. These serviced / vacation rentals offer a wide selection of â budget apartments or luxury serviced apartments accommodations in Gurgaon that are available for both short and long term rentals. 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. Adagio has the largest pipeline with more than 50 hotel projects (just over 6,100 units) across Europe. CHART 7: RECENT SINGLE-ASSET TRANSACTIONS ACROSS EUROPE (€). 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. Large international brands are realising the sector’s potential and are creating and evolving new brands to penetrate the market. IHG also has another 169 extended stay hotels in their Staybridge Suites pipeline. These serviced residences are essentially rental homes, apartments and flats that are fully furnished to give a complete hotel apartment feel. Sources: HVS Research; Tophotelprojects, CHART 9: NEW SUPPLY PIPELINE ACROSS EUROPE – 2019-23 OPENINGS (continued), CHART 10: NEW SUPPLY PIPELINE ACROSS EUROPE – 2019-23 OPENINGS (continued), CHART 11: NEW SUPPLY PIPELINE ACROSS EUROPE – 2019-23 OPENINGS (continued). Some 23,600 serviced apartment units form the European pipeline for the coming four years (projects that have been publicly announced). âThe sector is booming across the U.K. as consumers increasingly choose serviced apartments as their accommodation of choice,â said James Foice, CEO of the Association of Serviced Apartment Providers (ASAP). 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. 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. Compared with the mainstream hotel sector, the serviced apartment market has been less focused with brands and branding, but that is gradually changing. The Serviced Apartment Sector Explained. Lenders have reported that debt for serviced apartments is available, although primarily in gateway cities in Western Europe. 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. Interested to rent serviced apartments.Placed at sector-68 gurgaon.Nice furnished enhancing decorit has spacious 1 bedroom and 1 bathroom. This mirrors the overall hotel pipeline trends. Staycity’s pipeline is just under 4,800 units in Europe, primarily in the UK and Ireland, but also in Germany, France and Italy. sector for investors We are the independent leader in Serviced Apartment real estate investment advice. 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. Serviced apartments: the fastest-growing sector in hospitality People live, work and travel differently in the modern era, and the hospitality sector has evolved in response to this. 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. Alternative concepts such as co-living, co-working, student accommodation and home-sharing are merging with the serviced apartment concept, creating hybrids as a response to changing demand behaviours. Revenue per available room (revpar) for serviced apartments increased by 7% last year, compared with 5% for hotels, across Europe. 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. Perch Serviced Apartments - Fully serviced and carefully curated for the discerning traveller. It also revealed investment in US serviced apartments totalled £1.3 billion from January to October 2013, â¦ 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. European RevPAR performance in 2018 indicates that the sector is still growing at a quicker pace than the traditional hotel industry. 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. This suite-style accommodation usually has more than 10 units per property. What are the benefits for developers and landlords? Amount of waste generated in the tourism sector. By TTG Asia / Posted on 1 December, 2020 13:58. These are the typical serviced apartment and apart-hotel operating characteristics: Having seen a rapid growth over the last decade, the sector continues to expand at a healthy rate with a pipeline of 20,000 units expected to open in Europe over the next five years, almost double that of last year’s projected pipeline. 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. Rapid Eye Movement sleep – a stage of sleep during which you dream and your eyes make small, quick movements. 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. Derag Livinghotels and Adina represent the two brands with the largest number of operating 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. Similar to previous years, the UK and Germany represent the vast majority of the total pipeline (32% and 25%, respectively). The brand will initially be established in the USA with the first hotels expected to open in 2021. 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. Our job is to help our clients satisfy this demand and hand-hold them to completion. 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. Radisson eyes EMEA expansion in serviced apartment sector. 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. 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. Demand for serviced apartment accommodation remains vigorous across Western Europe. The hotels are set to open by 2021. 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. 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. 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