Apartmentservice

Rising demand from short-term guests is driving average daily rates in the serviced apartment sector in Germany up by over 22 per cent - Consulting firm Apartmentservice publishes results

Issuer: Apartmentservice / Key word(s): Study results/Real Estate


14.12.2023 / 14:25 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Berlin, 14 December 2023. The serviced apartment industry in Germany reported record figures in almost all areas up to September 2023. The average daily rate per apartment (ADR) rose from EUR 85 to EUR 104 in less than a year, an increase of more than 22 per cent. At 84 per cent, occupancy in the properties reached higher levels than before the coronavirus pandemic. In terms of the RevPAR value (revenue per available room), which is decisive for investors, this development underpins the lead over the traditional hotel industry. However, the results of a new performance analysis published today by the consulting firm Apartmentservice, which was conducted in the run-up to and as part of the annual SO!APART conference, describe not only record figures but also a dampened mood. "As impressive as last year's development was, the overall economic situation and the property crisis are certainly having an impact on the confidence of the players," says Anett Gregorius, owner and founder of Apartmentservice. In autumn, 73 percent of operators are positive and very positive about the development of the overall market in Germany. "That is still a very pleasing figure in itself. At the beginning of 2023, however, it was significantly higher at 96 per cent," says Anett Gregorius. "In order to defy the economic environment, more and more operators are also developing hybrid brands." A trend that is an important factor in the outstanding figures for 2023 will continue: More and more operators are opening up more to short-term travellers. The increasing desire of guests to be able to use serviced apartments with kitchens and more cosiness, even for stays of just a few days, will also enable hotels that previously concentrated on long stays to achieve higher margins. The products and brands are being further developed as a result of F&B offers. For example, the budget serviced apartment brand Smartments is planning an F&B concept for its new connect product line for the first time. "That would have been unthinkable five years ago," says Anett Gregorius. "Even though the offer will certainly be digital or largely automated." In addition to the standard apartments, a significant proportion of the rooms will be equipped without their own kitchen. Travellers will then use communal kitchens that are open to all guests. In this way, the GBI Group brand aims to grow faster, not least in existing properties and premium locations. The serviced apartment market leader in Germany, Adina Hotels, launched MM:NT with its parent company TFE at SO!APART: With the hybrid brand, the group is experimenting for the first time with rooms from 12 square metres, in addition to apartment offerings, and will be testing the new brand from February in its lab currently under construction in Berlin. "At the same time, with the recent takeover of Yays by Numa, we are seeing ongoing consolidation in the segment," says the owner of Apartmentservice. According to the industry survey by Apartmentservice, the mix of high interest rates, cautious banks, fluctuating energy prices, few transactions and a massive shortage of employees is depressing the mood: "With 73 instead of 96 per cent of respondents rating the development of the overall market as positive or very positive, we see a certain clouding of the basic mood. But so far this has nothing to do with the specific economic situation of our own company," says Anett Gregorius. In autumn, 92% rated this as good to very good; in January and February 2023, the figure was 90%. Another reason for the dampened mood is that the business travel market is no longer at the same level as in 2019, with many trade fairs continuing to record significantly fewer visitors. "People are also travelling much less - but for longer, which makes serviced apartments particularly attractive," says Anett Gregorius. "Nevertheless, the travel budgets approved by companies are not developing in line with the increased costs. This has led to a small but unmistakable dip in occupancy since August. Thanks to the short stays, many cancellations at short notice could be absorbed." Nevertheless, general demand is high and provides the segment with reliable forecasts. "Serviced apartments are currently scoring points with the dual factor of demand from tourists and traditional business travellers and as an alternative to even tighter residential markets in many major cities," says Anett Gregorius: "The megatrends and excess demand are strengthening the segment. At the same time, operators in the segment remain dynamic in their concepts and are focusing on increasing digitalisation and hybrid variants." According to Apartmentservice, the number of serviced apartments on offer in Germany has increased by a further 6,600 units this year to a total of 50,995 in 934 properties (each with at least 15 units in a building). The segment will grow by 24.5 per cent in Germany by the end of 2026 (as at 31.10.2023). "This is still an impressive figure, even if we are no longer close to the 40 per cent pipeline rate we had before the pandemic. The operators with the highest growth announcements include Numa, Limehome, Rioca, Nena Hospitality and the new kid on the block, The Jeader House," reports Anett Gregorius.   About Apartmentservice:
Expert, pioneer, thought leader, consultant, booking platform and medium - the 360° view of the specialised serviced apartment segment: Apartmentservice has been a permanent fixture in the industry since 2001, advising investors, project developers and operators on new developments, preparing feasibility studies and collecting and publishing the key figures for the serviced apartment segment in Germany. On the portal of the same name, apartmentservice.de, Apartmentservice is the first booking platform for serviced apartments to present more than 120 destinations in Germany and around the world. As an industry expert and ambassador for the temporary living megatrend, Apartmentservice founder and owner Anett Gregorius is present at numerous high-calibre events as a speaker and moderator. Once a year, Apartmentservice organises the SO!APART conference, which has become the most important industry gathering in German-speaking countries since 2013. In 2021, the company also launched the trade magazine SO!APART insight, which sees itself as an in-depth and independent digital medium for all top players in the field of temporary living. Press contact:
Wolfgang Ludwig
Mathias-Brüggen-Straße 124, 50829 Köln
Tel. [phone]
Mobil +49 (0) 171/ 9335134
[e-mail] Company Contact:
Apartmentservice
Anett Gregorius
Berliner Allee 36, 13088 Berlin
Tel. [phone]
[e-mail]

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