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CITADINES ISLINGTON SYNERGY

Onwards and UPWARDS

Investors remain bullish in the serviced apartment sector and development continues

STAYCITY DUBLIN

Reflecting an enduring dynamism in the sector, openings, development and investment continue apace.

“This sector will continue to grow even during the pandemic and once recovery sets in we are likely to see expansion accelerate,” says Arlett Hoff, Director at hospitality global consulting firm HVS.

According to an HVS report, investors consider that serviced apartments are better placed in the pandemic than the hotel sector and more than 70% of them stated their appetite for future investments into the serviced apartment sector has increased over the course of 2020, although lenders are more cautious. Not surprisingly, all investors polled are actively looking for new serviced apartment deals with acquisitions, new developments and renovations or expansions most favoured.

Some 20,000 serviced apartment units are due to come on stream in Europe over the next five years, although Covid-19 has led to a few cancelled projects and many delays. According to figures available in October 2020, of the 20,000 units planned, 5,694 are opening in the UK, including 415 in 2020, 1,760 in 2021 and 1,692 in 2022.

Adagio has the largest pipeline across Europe with around 35 projects and nearly 5,000 units, more than 1,000 of which are in the UK. Adagio is set to welcome guests to London's Stratford from March and to Sutton later in spring 2021, followed in 2022 by properties in Glasgow and London Whitechapel.

Staycity comes next with 20 properties in the pipeline, with more than half the units to be located in the UK. In November Staycity concluded a €70 million debt and equity refinancing to fund its European plans to almost double the size of the company over the following 18 months and to operate 15,000 keys by 2026/2027, signalling long-term confidence.

Citadines Islington London unlocked its doors in August 2020 with 108 units and hot on its heels comes Citadines Wembley London with 300 units in 2021.

Franchise will drive Ascott’s growth, alongside investment, management contracts and strategic alliances. “Serviced residences have gained more interest from investors and franchisees due to their resilient and efficient business model,” says Managing Director Ascott Global Serviced Residence Fund and Head, Business Development Mak Hoe Kit.

Cheval Collection opened three properties in Edinburgh in July and opens a collection of 30 apartments in Kensington this spring.

New openings

In February 2021 Cycas is due to open dualbranded Moxy and Residence Inn in Slough as part of a hotel, retail and residential development; Kingsland Locke also hits Dalston in 2021, followed by Turing Locke in Cambridgeshire and Staybridge Suites Cardiff, both set to open later this year.

Lamington Group’s room2 Chiswick opens in summer 2021 and comes after co-working space Missionworks in Hammersmith in January 2021; and room2 is to take over some 40 Travelodges, creating a ‘lite’ version of hometel.

Staycity has planning permission for an aparthotel with 310 units in Manchester’s Deansgate, anticipated in 2024, while aparthotel brand Native has taken over management of Edinburgh’s Kintore House on Queens Street and has other sites under development including Leeds, York, Bristol, Oxford and London’s Soho. And Synergy President International Stephen Hanton hints : “While I am not prepared to give away too much about the company’s expansion plans across EMEA, the recent partnership announced with STAY Camden gives some insight into our intention to have guaranteed apartment stock in London and other key locations for the global accounts we look after."

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