Extended stay hotels poised to expand in Europe
Extended stay hotels are expected to grow at a much faster rate in Europe than other types of hotel during the next few years.
The ?extended stay? model of accommodation is just starting to take off as a sector in Europe, according to speakers at the first Serviced Apartment Summit in London.
The one-day event, which was being held for the first time, attracted more than 150 delegates including serviced apartment operators, hotel chains and investors.
Josh Wyatt, a partner at private equity firm Patron Capital Partners, said: ?It?s very early days for extended stay in Europe. The US model is significantly bigger and more sophisticated with a larger amount of apartments.?
Wyatt added that the sector had been slow to get off the ground in recent years due to the financial crisis and ensuing recession, as well as a lack of funding. But he said this was now changing with more finance becoming available for developments.
?Other areas of the hotel industry are becoming saturated ? there are too many five-star hotels ? ?but that?s not the case with the extended stay market,? said Wyatt.
Vangelis Porikis, Adagio?s director for central and northern Europe, added that Europe was at ?the beginning of the revolution? when it came to extended stay accommodation.
?It?s not a mature market ? it?s emerging,? he said. ?There is plenty of demand for extended stay throughout Europe and it is coming from both domestic and overseas markets. There is still space to grow in cities such as Paris and London.?
The location of long-stay properties remains a key factor for guests who may be staying for several weeks or months.
Jonathan Humphries, vice president of development planning?EMEA?for Marriott?s Residence Inn brand, said: ?The most important thing is a sense of community. Guests want to be able to walk out and have a few restaurants and shops nearby.
?It doesn?t have to be near where they are going to work as we find they are willing to commute to where they need to go.?