The Rise of Serviced Apartments in London: Key Market Trends for 2024
London, a city known for its rich history, vibrant culture, and dynamic business environment, is experiencing a remarkable shift in the way accommodation is approached. The demand for Serviced Apartments in London shows no signs of slowing down, and it is reshaping the city’s hospitality landscape.
At LuxFlat, we are proud to be part of this exciting evolution. With 56,700 serviced apartments in the UK and a market value of £1.7 billion, this segment is maturing rapidly.
Let’s dive into the key market trends for 2024 that are driving this change, highlighting why serviced apartments are becoming the preferred choice for travellers and investors alike.
The Changing Landscape of Serviced Apartments in London
As we look into 2024, the market for serviced apartments continues to expand, reflecting a broader global trend towards more flexible, comfortable, and home-like accommodations.
These apartments, which offer the convenience of a hotel with the comfort of a home, are particularly appealing in a post-pandemic world where travellers seek safety, privacy, and autonomy.
Staying ahead of these trends is crucial for operators and investors. Understanding the factors that drive the popularity of serviced apartments can help stakeholders make informed decisions that align with market demands and enhance their offerings.
Extended Stays and Blended Stays: A New Norm
One of the most significant trends in the serviced apartment sector is the rising popularity of extended stays. As more professionals and families seek out longer-term accommodation, often for stays of over 30 days, serviced apartments have become the go-to option.
These extended stays offer a blend of comfort and convenience that traditional hotels struggle to match. The flexibility of having a fully equipped kitchen, separate living space, and more privacy makes serviced apartments an ideal choice for those who need a home away from home for extended periods.
Alongside extended stays, we see the emergence of blended stays, where guests can choose from a range of lengths within the same property. This flexibility is particularly attractive to digital nomads, business travellers, and those on temporary work assignments who require more adaptable accommodation options.
Operators are increasingly leveraging PropTech (Property Technology) to manage these extended and blended stays efficiently. By utilising smart technology, they can offer personalised experiences, streamline operations, and enhance guest satisfaction.
Blurred Hospitality Lines: Serviced Apartments vs. Hotels
| Aspect | Serviced Apartment | Hotels |
| Market performance 2024 | Outperforming hotels in both occupancy rates and revenue | Traditional hotels are less competitive in this sector |
| Amenities | Includes hotel-like amenities such as housekeeping, concierge services, and fitness centres | Similar amenities are available but typically in smaller or less flexible spaces |
| Space and Flexibility | Offers more space and flexibility with separate living areas and fully equipped kitchens | Typically offers less space and flexibility |
| Hospitality Model Convergence | Many hotel brands are expanding into serviced apartments, developing their own branded residences | Hotels are blending more with serviced apartment models, offering hybrid options |
| Brand Example | LuxFlat is at the forefront of this trend, providing both hotel-like amenities and the comfort of an apartment. | Traditional hotels continue to adapt but may not offer the same level of flexibility and space. |
Changing Needs of the Business Traveller
Business travel as a key driver:
- Business travellers account for approximately 45% of all guests in the serviced apartment market in London.
- Serviced apartments cater to both short-term and long-term business stays.
Evolving needs and expectations:
- The rise of Gen Z professionals is shifting the preferences of business travellers.
- This new generation values seamless digital experiences, including smartphone-based check-ins, environmental controls, and service access.
Focus on sustainability:
- Gen Z business travellers prefer eco-friendly options, such as energy-efficient buildings and sustainable amenities.
Adapting corporate stay offers:
- Serviced apartment operators are integrating advanced digital technologies to enhance the guest experience.
- Operators are also implementing sustainable practices across their properties to meet the growing demand for eco-conscious accommodations.
Health and Wellness: A Core Focus
In the post-pandemic world, health and wellness have taken centre stage in the hospitality industry. Guests now prioritise accommodations that offer wellness amenities such as gyms, green spaces, and even wellness programs.
This trend is particularly pronounced in the serviced apartment sector, where guests often stay for longer periods and, therefore, place a higher value on maintaining their health and well-being during their stay.
To meet these expectations, many tips regarding booking serviced apartments in London are now mentioned by the industry standards.
Additionally, the integration of PropTech allows operators to enhance their wellness offerings—think air quality monitoring, personalised fitness recommendations, and virtual wellness consultations, all of which contribute to a superior guest experience.
Investment Surge and New Supply
The strong performance of the serviced apartment sector has not gone unnoticed by investors. Institutional investors and large hotel chains are increasingly attracted to the potential of serviced apartments, seeing them as a stable and lucrative investment.
This interest is leading to a significant pipeline of new supply in London and across Europe, with many new developments scheduled to come online in 2024 and beyond.
However, this growth does not come without challenges. Rising construction costs and the limited availability of prime locations in central
London is a key concern for developers and investors. Despite these hurdles, the demand for serviced apartments continues to drive investment, with operators looking for innovative solutions to overcome these barriers.
Conclusion
As we move further into 2024, it’s clear that serviced apartments in London are well-positioned for continued growth and innovation. The convergence with traditional hotels, the focus on health and wellness, and the evolving needs of business travellers all point to a sector that is rapidly adapting to meet the demands of modern travellers.
For those of us in the industry, staying attuned to these trends is not just important—it’s essential for long-term success. By embracing the flexibility and innovation that define serviced apartments, we can continue to offer exceptional experiences that meet the needs of today’s travellers.
At LuxFlat, we are committed to staying at the forefront of these market trends. Whether you’re a traveller looking for a comfortable, extended stay or an investor seeking a robust opportunity, our serviced apartments offer the perfect blend of luxury, convenience, and modern amenities. Explore our offerings today and discover why we are the ideal choice for your next stay in London.
Ready to experience the best of serviced apartments in London? Visit LuxFlat today to book your stay and enjoy the ultimate in comfort and convenience!