The following chart presents an overview of the recent occupancy and average rate performance in Europe, as provided by the main operators in the market. These low financing costs, along with compressed margins and long amortisation periods, all act as factors that increase DSC ratios. The serviced apartments and extended-stay sector is one of the fastest growing areas of hospitality accommodation in Europe. ... JN Boutique Apartments Sector 6, Bucharest Budget options available. In the event that you intend to remain for a short or long in Gurgaon, here you find your dream serviced apartment in Gurgaon for rent. Serviced apartments: the fastest-growing sector in hospitality People live, work and travel differently in the modern era, and the hospitality sector has evolved in response to this. OYO is arguably tapping into a niche area, sandwiched between co-living and serviced apartments, and should be considered as a serious contender within both sub-sectors. 6 Serviced Apartments: The fastest growing sector in hospitality. The hotels will consist of mainly studios, ranging from 18 m² to 21 m². On a similar note, Marriott is also tapping into the home-sharing market with the launch of the Homes & Villas by Marriott rental platform in over 100 destinations across Europe, the USA and the Caribbean in May 2019. This launch follows AccorHotels’ acquisition of Onefinestay in 2016 and Hyatt’s temporary collaboration with Oasis (which ended in October 2018 following the acquisition of Oasis by Vacasa), adding new ‘layers’ to its core competencies. In May 2019, OYO announced the acquisition of the Amsterdam-based holiday rental company @Leisure Group from German media group Axel Springer for an estimated €369 million. Also this year, Staycity will open properties in Edinburgh, Manchester and Berlin, as well as making its entry into Italy in Mestre (Venice), contributing to the group’s target of having 15,000 apartments by the end of 2023 (currently around 2,000 units). There have been a limited number of serviced apartment transactions and there is relatively little transparency in terms of sales prices. This Service Apartment in Gurugram is located in Greenwood City, Close to Delhi Public School and Ryan International School in Sector 45, about 6 kms from Info Technology Park in Sector 33, about 5.9 kms from Passport Seva Kendra near Udyog Vihar, Phase four, about 7.1 kms from DLF Cyber City, Gurgaon and about 15.9 kms from Indiragandhi International Airport. ( 18.58 sq.m. CHART 8: NEW SUPPLY PIPELINE ACROSS EUROPE – 2019-23 OPENINGS, Please note that these lists are not exhaustive New brands continue to emerge, and over 70% of operators are planning new properties, creating substantial demand for C1 and C3 buildings across the UK and Europe. We refer to ‘serviced apartments’ as a catch-all term for purpose built apart-hotels (with C1 use class) and residential buildings re-purposed for short-term lets (with C3 use class). Lending criteria for serviced apartments remain broadly similar to those of traditional hotels where branding and location remain two of the key lending requirements. In the following Q&A, we attempt to shed some light and clarify some key concepts. The serviced apartment sector offers fully furnished apartments which will always include kitchen facilities, as well as a living, sleeping area and a bath/shower room, and are available for short-term or long-term stays. Right from housekeeping, Wifi, TV, electricity and security. We have it all covered! The sector continues to innovate, with exciting new brands being introduced and traditional brands being reinvented. Interestingly, the allocation to serviced apartments is only marginally smaller compared to luxury and economy hotels. The average debt service coverage (DSC) ratio is 2.0 for serviced apartments in Western Europe, compared to 1.9 for hotels. While debt is available for acquiring existing serviced apartment businesses, the appetite for development financing is smaller; just over half of the participants in our lenders survey are willing to issue loans to such projects. This year’s report looks at the recent trends, discusses our analysis of the 2019 lenders survey results and recent transaction evidence and provides an outlook in terms of pipeline. Meanwhile, the industry continues to innovate with exciting new brands being introduced or traditional brands reinvented. Sources: HVS Research; Tophotelprojects, CHART 9: NEW SUPPLY PIPELINE ACROSS EUROPE – 2019-23 OPENINGS (continued), CHART 10: NEW SUPPLY PIPELINE ACROSS EUROPE – 2019-23 OPENINGS (continued), CHART 11: NEW SUPPLY PIPELINE ACROSS EUROPE – 2019-23 OPENINGS (continued). Service apartments brought to you by Spectrum@Metro at Sector 75, Noida is a blessing in disguise to business and leisure travellers. A more detailed and extensive list of recently opened properties and planned new supply can be found in Charts 8 to 11 at the end of this report. OYO Hotels & Homes, India’s largest hospitality group and one of the fastest growing hotel companies in the world, has rapidly expanded in the UK since its debut in October 2018, spanning over 1,400 rooms to date. Adagio’s new concept ‘The Circle’, a programme intended to create a more modern and dynamic identity, such as redesigned public spaces, shared kitchens and co-working spaces has been rolled out in over 20 apart-hotels so far. During the last 12 months, the serviced apartment sector in Europe continued to see strong momentum in both demand and supply. Adagio has the largest pipeline with more than 50 hotel projects (just over 6,100 units) across Europe. The serviced apartment sector in Europe continues to see strong supply and demand momentum. Radisson eyes EMEA expansion in serviced apartment sector. The most important issue would be for serviced apartments to become more sustainable and maintain their profitability as well as providing an added value to their customers. Copyrights © 2020 All Rights Reserved by HVS, Please note that these lists are not exhaustive. The properties are planned to be ‘all-studio’ suites with kitchenettes, while the public areas will include limited food and beverage offerings, flexible meeting space and ‘huddle areas’, as well as private and public working spaces. Rapid Eye Movement sleep – a stage of sleep during which you dream and your eyes make small, quick movements. The brand will initially be established in the USA with the first hotels expected to open in 2021. Brand & Management Selection and Contract Negotiations, Convention, Sports & Entertainment Facilities. In the first quarter of this year, Hilton opened 23 extended stay hotels and The Ascott Limited, the world’s largest provider of extended stay, announced their target to double their global portfolio from 80,000 to 160,000 units by 2023. This suite-style accommodation usually has more than 10 units per property. This deal includes approximately 20,000 units across Indonesia, Malaysia and Vietnam, with half currently under development, putting Ascott’s total portfolio at more than 90,000 units globally. Our custom-designed Ivory serviced residences are located in Sector 38 near the Medanta Hospital & Sector 51 near Artemis Hospital – offering Studio Apartments, One Bedroom, Two Bedroom & Three Bedroom Serviced Apartments that have beautifully appointed rooms epitomizing luxury and a distinctive feeling of style and comfort. These serviced residences are essentially rental homes, apartments and flats that are fully furnished to give a complete hotel apartment feel. “The sector is booming across the U.K. as consumers increasingly choose serviced apartments as their accommodation of choice,” said James Foice, CEO of the Association of Serviced Apartment Providers (ASAP). The sector continues to innovate, with exciting new brands being introduced and traditional brands being reinvented. We urge more operators, investors and lenders in the sector to recognise the value of sharing data to enable serviced apartments to continue to gain more attention from potential investors. Our survey results confirm that the sector is becoming more mainstream. Quest Apartment Hotels will open its first European property in Liverpool in September this year and it will be operated under a franchise agreement with Cycas Hospitality. Alternative concepts such as co-living, co-working, student accommodation and home-sharing are merging with the serviced apartment concept, creating hybrids as a response to changing demand behaviours. The availability and cost of debt have a direct impact on values. Compared with the mainstream hotel sector, the serviced apartment market has been less focused with brands and branding, but that is gradually changing. The product will be positioned in the upscale and luxury segment where Marriott’s platform will be launched in partnership with selected property management firms in return for access to Marriott’s robust distribution and sales system. A Savills report in October said London has 1.6 serviced apartments per 1,000 business visitors compared with 5.7 for New York and 5.3 for Hong Kong. Due to the sector’s increasing popularity, the industry has already reached maturity in the Americas, Middle East and Asia, leaving Europe and the UK particularly underpenetrated. A vast majority of the lenders currently active in the hotel sector have reported that debt for serviced apartments is available, although primarily in gateway cities in Western Europe. In the UK, the serviced apartment sector first came into focus around 15 years ago as a response to a surge in demand from corporate travellers, who frequently found long-term hotel stays uncomfortable and impersonal. CHART 1: PROPORTION OF LOANS GIVEN BY CHAIN-SCALE SEGMENT IN WESTERN EUROPE. Furthermore, Union Investment purchased a portfolio of four hotel development projects from Benchmark Real Estate Development for an undisclosed sum via a forward purchase agreement in October 2018. This mirrors the overall hotel pipeline trends. Hotel developers are used to working with management contracts, but landlords and investors can now benefit from the guarantee of long-term leases provided by serviced apartment operators. This attitude mirrors banks’ perception of the broader hotel market with more cautious lending for new developments and some concerns of possible oversupply, particularly in some parts of Western Europe. Derag Livinghotels and Adina represent the two brands with the largest number of operating The difference compared to traditional hotels, shown in Chart 2, reflects the perception of risk around serviced apartments to be somewhat higher and thus more conservative maximum LTVs are applied. Bridgestreet announced that it secured the operations of the newest apart-hotel: the ‘removable’ Stow-Away Waterloo. IREO Ascott serviced apartments provides the fitness center, swimming pool, retail & dining options, maintenance, and building services. In Europe, the company aims to have 170 properties, with new signings regardless of the operating structure, by 2023. Alternative concepts such as co-living, co-working, student accommodation and home-sharing are merging with the serviced apartment concept, creating hybrids as a response to changing demand behaviours. Some 23,600 serviced apartment units form the European pipeline for the coming four years (projects that have been publicly announced). As the serviced apartment industry continues to mature, transaction volumes accounted for roughly 10% of all hotel transactions in Europe in 2018, although this figure was somewhat skewed by the sale of the Saco portfolio to Brookfield for approximately £430 million in February. 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serviced apartments sector

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