The global serviced apartment sector is expected to double in size over the next four years according to industry association leader.
Charlie McCrow, CEO of The Apartment Service, believes “the market doubled over the past 12 years” and he forecasts it will double in size again in the next four years.
The industry is growing in size and diversity, and its popularity is soaring among corporate and millennial travellers.
These latest trends were revealed in the 5th Edition of the Global Serviced Apartment Industry Report (GSAIR) 2015 – 2016 by The Apartment Service, which surveyed 2,500 serviced apartment operators, associations, buyers and agents.
According to the GSAIR report, global supply of serviced apartments has increased by 14% year-on-year and 80.1% since 2008.
The strong growth is being driven by significant interest from institutional property investors, which has helped drive global inventory to 748,437 serviced apartments operating in 9,875 locations.
According to the latest report, 69% of operators say they will increase the number of apartments in existing locations over the next two years, predominately in Europe and Asia.
As serviced apartment supply has increased, so has the product’s popularity amongst corporate and relocation travellers.
Some of the key factors driving increased demand for serviced apartment over hotels include the ability to cook meals or entertain guests, privacy and the overall serviced apartment environment. Costs are also a major factor for corporate bookers, with many services apartments offering more competitive rates than hoteliers.
GSAIR also predicts that the Millennial Travellers will be enthusiastic adopters and will drive future design, content and distribution.
Compiled by Travel Intelligence Network (TIN) for The Apartment Service, the new edition is the most detailed yet, including over 30 interviews and findings of surveys conducted amongst 2,500 serviced apartment operators, associations, buyers and agents.