Further opportunities emerge in extended stay sector
The European extended stay accommodation market looks as if it could lose its ultra niche label over the next few years as a boom in the mobile workforce and business travel creates demand for serviced apartments.
In a study on the sector, the hotel consultancy HVS reports that more than 18,000 serviced apartment units currently form the European pipeline for the coming five years. Closer to double the amount of developments registered by HVS last year, the figure is a new record. The bulk of the planned new builds (c15,000), varying from 25 to 457 units, with an average of 134 units, should be up and running by 2020.
Following recent trends, the UK and Germany dominate the pipeline, with 30 percent and 25 percent, respectively, of the developments, but behind them, the pack is changing shape. HVS has identified Poland as a whole new player in the sector, with 500 units in development, while other more consolidated countries such as Switzerland are set to be far less a