The year will end on a positive note for the serviced accommodation sector according to findings from their Sentiment Survey 2019 conducted by the Association of Serviced Apartment Providers (ASAP) and Savills.
The survey, which gathers responses from a varied spectrum of operators to gain insight, reports both optimism and an increase in corporate demand.
When it came to outlook, 56 per cent of respondents were ‘slightly to significantly more optimistic,’ an increase from 46 per cent recorded at the last survey in June. And better still, more positive responses (39 per cent in net balance terms) were gathered than in any of the previous Sentiment Surveys. This surge in confidence saw more respondents “revise their year-end operational performance expectations upwards,” commented Marie Hickey, director in Savills’ commercial research team.
Rise In Corporate Demand
Given the other findings, it is easy to understand why so many are optimistic. In terms of demand from the corporate market, the survey reported a net balance –the number of operators that reported improvement compared to those reporting a decline— of 34 per cent. A jump from 20.5 per cent recorded 12 months ago.
However, while the Sentiment Survey 2019 may reflect a generally positive mood, the serviced accommodation sector is in no doubt that the current economic and political climate in the UK poses fresh challenges. But although the prospect of uncertainty and disruption looms, operators remain undeterred. Of those surveyed, the majority planned to pursue their plans for expansion, and just over 36 per cent intended to accelerate them.
Such a proactive approach to a pending Brexit, a general election and the inevitable change it will all bring is reassuring. But more than that, it reflects a certain level of resilience. Operators intend to push forwards but are ready to adapt if they need to. And, with the support of organisations like the ASAP, they remain committed to meeting the needs of the corporate market who like them, will have their own challenges to overcome in the following months.