1、European Serviced Apartments 2024 Investor interest surges as the lines between hospitality and residential blurSPOTLIGHTSavills ResearchSAV I L L S H OT E L SWebsiteSocialStaycity Dublin City Centre4SPOTLIGHTSavills ResearchE U RO PEAN SERVIC E D APARTM E NTS 2 0243Operational outlookWhy serviced a

2、partments?Sector growth and attractionOutlook Serviced Apartments(also known as extended stay;we use both terms interchangeably in this report)have shown robust performance,with KPIs typically above those seen for equivalent hotels.The evolving maturity of the sector means that institutional grade s

3、tock is largely apart-hotel in nature,albeit typical unit sizes and on-site facilities vary depending on the operator/brand.Average annual RevPAR rates between 2021 and 2023 for the UK extended stay sector were 27.5%higher than the hotel average.The sector typically enjoys higher profit margins.Cent

4、ral London properties can achieve net operating profit margins between 45-55%,compared to 30-40%for hotels.The sector recorded nearly 700 million in transactions in 2023,representing 4.7%of total hospitality volumes.Increased consumer awareness,the rise of digital nomads,and the curb on Airbnb in so

5、me markets will support demand and operational performance.Extended stay currently represents a small portion of the total European hospitality market,averaging 6.1%of the total accommodation supply in major cities:there are significant opportunities for development and expansion.Investment activity

6、 to pick up pace in 2025,supported by an increase in stock and continued investor interest.Global hotel groups,such as Hilton and Marriott,are looking to accelerate the rollout of their extended stay concepts,further helping to legitimise the sector.Crossover with co-living and student to become mor