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H1 2018 performance results for the UK serviced apartment sector revealed a 0.6% decline in occupancy.
London’s occupancy was down 1.1% to an actual level of 81.1%, impacted by significant supply growth. The capital also recorded a 2.3% drop in ADR, bringing RevPAR down 3.3% to an actual level of £146.73.
Edinburgh experienced more significant declines, with occupancy down 8.5% and ADR down 3.5%, resulting in an 11.8% decline in RevPAR to £77.86. The sector’s performance was more positive in Birmingham, with occupancy up 4.7% to an actual level of 83.1% and ADR up 1.5% to £86.80, bringing RevPAR up 6.3% to £72.13.
Thomas Emanuel, director of business development for STR, said: “Despite the slight decline, the UK serviced apartment sector is still seeing strong actual occupancy levels.
However, new supply at the levels we are seeing in this sector are bound to make an impact, and those markets with the highest supply increases are seeing the highest impact on occupancy performance.
“Operator confidence remains strong, and rates are growing accordingly. These occupancy challenges are likely to continue in the future due to a very robust pipeline across the sector, although demand should also continue to grow.”
