Native, an aparthotel brand with a GBP 1.7 billion portfolio of assets under its management, formed a new partnership with the privately-owned mixed-use developer, First Base. The goal of the venture is to develop up to GBP 400 million (USD 516.68 mn) worth of aparthotel units across the UK. The companies will commit funds in two tranches: GBP 200 million in 2018 and an additional GBP 200 million in 2019.
The agreement will see aparthotels or mixed-use sites with a primary focus around key locations such as London, Oxford, Cambridge, Bristol and Edinburgh. Other target cities include Brighton, Reading, Manchester, York and Dublin.
“A time when the sector is set for significant expansion”
Archie Hunter, development director at Native, said: “This partnership clearly demonstrates our commitment to standout aparthotel developments across the UK, at a time when the sector is set for significant expansion.
“With 20 years of experience behind us, we have established the Native brand as synonymous with outstanding service, creative design and operational efficiency. Our expansion will enable us to take our unique proposition to a greater range of key UK cities, addressing a significant gap in the market.”
As explained by Hunter, the agreement comes at a time when the UK aparthotel sector is expecting an increase in numbers of both business and leisure travellers who are opting for the independence of apartment living, while looking for the service and flexibility of a hotel.
The latest statistics from STR Global, a hotel data benchmarking company, shows that from January to December 2017, average daily rate (ADR) in the aparthotel sector rose by 5.4%, leading to revenue achieved per room going up by 5.7%.
“Demand far outstrips supply for aparthotels in these locations”
Barry Jessup, director at First Base, said: “First Base and Native are kindred spirits in our appreciation of good design, and our belief in the fundamental strength of Britain’s regional cities and towns.
“Demand far outstrips supply for aparthotels in these locations, and we see homestay living playing an important role in the revitalisation of town centres. We will begin work on these developments as soon as we have secured the sites and planning consent, such is the demand.”