Spotlight: The UK

Extended Stay Market

The UK Extended Stay Market
The UK Extended Stay Market

8 December 2016, by Marie Hickey

Operator confidence and appetite for expansion improves in the face of operational headwinds

Summary

■ Operational conditions in London have been challenging over 2016, but operator confidence has improved over the second part of the year.

■ Greater optimism is being reflected in operators expansion plans. The latest ASAP/Savills operator survey noted an increase in operators who are accelerating expansion plans.

 

■ 2017 will be a record year for new development in the UK with just over 2,600 units forecast to be delivered, a 13.8% increase on current stock.

■ There may be some short lived absorption issues in certain markets next year, as expected at this early stage in the sectors evolution.

■ The longer term fundamentals of the sector remain robust and we expect RevPAR growth to remain in positivity territory in 2017.

■ Institutional investors have stepped up forward funding activity, driven by improving investor appetite and lack of purpose built stock for acquisition.

Articles from 'Spotlight: European Extended Stay Market – Winter 2016/17'

The UK Extended Stay Market

08 December 2016

The UK Extended Stay Market

Operator confidence and appetite for expansion improves in the face of operational headwinds

 
 

Receive the latest research

Retail Properties

Key contacts

Marie Hickey

Marie Hickey

Director
Commercial Research

Savills Margaret Street

+44 (0) 20 3320 8288