Serviced apartments may lead the way once European hotel sector starts to recover from COVID-19

Serviced apartments in Europe have not been immune to the COVID-19 crisis but have shown some degree of relative out-performance compared to other hotel sectors, according to Savills. As seen historically, this could become more pronounced once recovery starts to emerge.

Analysis conducted by the international real estate adviser shows serviced apartments had already started to outperform hotels before COVID-19. In the case of London, serviced apartment RevPAR (revenue per available room) has grown by an average of 3.9 percent per year between 2014 and the end of 2019, increasing to an average of 5.2 percent per year during the past three years. London hotel RevPAR growth has lagged behind, with an average annual growth of 2 percent during the past five years, with a three-year average of 3.3 percent.

Serviced apartments accounted for an estimated 7.9 percent of total bed nights across Europe’s top 10 gateway cities pre-COVID-19, according to Savills analysis, simila