The Serviced Apartment Industry is experiencing an incredibly busy year. The fantastic value offered to both the business traveller and the leisure traveller has seen the popularity of Serviced Apartments soar during the first six months of 2010. Go Native are reporting the busiest year in bookings in it’s history and has seen many new clients come on board to enjoy the benefits of this type of rented accommodation. Shaun Prime COO at Go Native comments ‘We have spent valuable time listening to the needs of our clients and have built our portfolios of property in line with the results of this research from both a location and facilities perspective. We’re running at very high occupancies which is a strong indication of the desire for our product and the wider industry appears to be experiencing similar demand.’
Current supply is at an all time low with Serviced Apartment booking agencies struggling to find enough supply to satisfy demand particularly in London. Operators are taking advantage of the demand on their apartments by raising prices and managing their revenues closely. Go Native believes this is partially due to the economic downturn over the last 18 months where larger operators contracted their stocks to maintain stability whilst UK businesses tightened there belts to curb the effects of the recession. At the same time Businesses also realised the cost saving value. For example, city serviced apartments for rent are generally cheaper than hotels of a similar specification, and the guest can also enjoy the Kitchen facilities and prepare meals, even entertain clients in the comfort of their apartment. This has lead to a reduction in the per diem spend often offered when staying in hotels. This coupled with the benefits of extra space, a home from home experience and the privacy that comes with a rented apartment has also seen Employee’s shifting their preference towards staying in this type of accommodation.
As we begin to climb out of recession, rental demand from businesses appears to have returned. In general operators are trying to bring on more and more stock to take advantage of the current market conditions. Go Native is happy to share that it has a number of developments in the pipeline going live in the coming months continuing the growth of its Portfolio and furthering its commitment to growing client demand for serviced apartments.