Spotlight: European

Extended Stay Market

European Extended Stay Market
European Extended Stay Market

3 August 2016, by Marie Hickey

Prospects for stock expansion and investment in the sector have improved

Summary

■ Evolving consumer preferences, primarily amongst millennial business travellers, is set to be a key driver of demand for extended stay product.

■ The acceleration in the rollout of extended stay concepts by a number of global hotel operators reflects a growing awareness of the potential scale of extended stay demand in Europe.

 

■ Examination of underlying fundamentals related to supply and demand across 35 European cities identified a number of 'opportunity' markets for expansion. The top five cities included Amsterdam, Barcelona, Berlin, Dublin and Stockholm.

■ European transaction volumes were up 32.9% in 2015 on the previous year. With an annual volume of €416.5m, however, it remains a relatively 'niche' sector albeit this reflects lack of built institutional grade stock rather than lack of investor appetite.

■ Some operators are moving into PRS with a 'hybrid' model. This has the potential to drive additional investment into the sector in general and plus improve the yield profile over a traditional PRS operation.

Articles from 'Spotlight: European Extended Stay Market – 2016'

The European Extended Stay Market

The scale of potential demand and possibility to tap into the PRS market will open up significant opportunities

 
 

Key contacts

Marie Hickey

Marie Hickey

Director
Commercial Research

Savills Margaret Street

+44 (0) 20 3320 8288

 

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