Why Savvy Investors Are Betting on Serviced Accommodation in the UK

Table of Contents

Key Takeaways: 

  • Serviced accommodation in the UK provides a unique blend of home comfort with hotel luxury, attracting a diverse range of travellers.
  • The consistent demand and ability to command premium rental prices position it as a top investment choice in the UK hospitality market.

Have you ever wondered where the smart money is going in the UK property market? Do you find yourself curious about the latest investment trends?

Well, here’s a stat that might pique your interest: According to the Global Serviced Apartment Industry Report (GSAIR) 2023, more than half (53%) of corporations stated they are now using serviced apartments for business travel more than they did a year ago.

The trend isn’t just a fleeting moment; it’s a significant shift in the UK hospitality market.

With such a compelling statistic in mind, let’s delve deeper into why serviced accommodation in the UK is becoming the investment choice for many and how you can benefit from this trend.

Why Investors Are Turning to Serviced Accommodation in the UK?

The UK hospitality market is undergoing a significant transformation, and serviced accommodation is emerging as a frontrunner. As investors strategies to maximise their returns, here’s why many are pivoting towards this sector:

1. Unmatched Flexibility 

Serviced accommodations in the UK stand out due to their adaptability. They cater to a diverse range of travellers, from those on short trips to those on extended business stays, ensuring a steady flow of income for investors.

2. Premium Amenities Lead to Higher Revenue

Equipped with amenities, including daily cleaning and concierge services, serviced accommodations can command higher rental prices. This positions them as a lucrative investment avenue in the evolving UK hospitality market.

3. Stability Through Consistent Occupancy

The broad appeal of serviced accommodations, catering to tourists and business travellers, results in higher occupancy rates. This consistent demand offers investors a more stable and reliable investment than traditional rental properties.

4. A Response to the UK’s Changing Hospitality Landscape

The UK, known globally as both a business hub and a tourist destination, is witnessing a surge in demand for accommodations that offer a blend of home-like comfort and hotel luxury. This shift in demand is driving more investors towards serviced accommodations.

5. Diversification and High ROI Potential

Serviced accommodations present a unique opportunity for investors looking to diversify their portfolios. The combination of high demand, the ability to charge premium rates, and the sector’s growth trajectory makes it a top choice for those aiming for a higher return on investment.

With these insights, investors are better positioned to understand the allure of serviced accommodations in the UK and their potential benefits. As we move forward, we’ll delve deeper into the strategies that can help maximise returns from such investments.

Key Strategies for Investing in Serviced Accommodation in the UK

Navigating the world of property investment requires a blend of market knowledge, foresight, and strategic planning. When it comes to serviced accommodation in the UK, there are specific strategies that can set investors on the path to success:

1. Location is Crucial

Urban areas in the UK, especially business hubs and tourist attractions like London, Manchester, and Edinburgh, are prime spots for serviced accommodation investments. Identifying areas with consistently high demand for short-term stays can lead to better returns.

2. Stay Abreast with Market Dynamics

The UK’s hospitality sector is ever-changing. Factors like emerging new tech hubs or major events can sway accommodation demand. Keeping updated with these shifts ensures investors are always a step ahead.

3. Harness the Power of Data

Market insights such as occupancy rates and rental averages are invaluable in the information age. These data points can guide investment decisions, helping pinpoint areas with rising demand for serviced accommodations.

4. Digital Presence Is Non-Negotiable

With platforms like Airbnb and Booking.com dominating the booking space, having a robust online presence is essential. Positive reviews and visibility on these platforms can lead to increased bookings.

5. Differentiate with Innovation

Today’s travellers seek unique experiences. Properties that offer distinct amenities, from cutting-edge tech features to tailored local experiences, stand out, attracting more guests and ensuring higher occupancy rates.

With these strategies, investors are better equipped to navigate the promising realm of serviced accommodation in the UK, ensuring they maximise their returns and capitalise on the sector’s growth potential.

The Future of Serviced Accommodation Investments in the UK

The property landscape is ever-evolving, and at the forefront of this transformation is the burgeoning sector of serviced accommodation. As we look ahead, the demand for such accommodations in the UK isn’t just a passing phase.

With the shift in work dynamics, such as the rise of remote work, coupled with the UK’s enduring allure as a tourist hub, the demand for short-term, homely stays is set to grow. This trend suggests that the serviced accommodation sector offers investors both sustainability and lucrative opportunities.

But where does one start? 

This is where PA Property Sourcing comes into play. With our profound understanding of the UK hospitality market and a vast network, we stand out as a beacon for investors. Our experience can provide invaluable insights, pivotal for making informed investment decisions. 

Pluxa Property aids investors in pinpointing the right properties, ensuring alignment with their objectives and promising optimal returns.

Our expertise ensures you’re not just entering the market but doing so with a strategy designed for success. Our holistic guidance includes understanding local market dynamics, crafting pricing strategies, and forging local partnerships.

While the future of property investment in serviced accommodation shines bright, partnering with seasoned professionals like Pluxa Property can ensure that brightness illuminates your investment journey.

Contact us now to learn more.


What benefits does serviced accommodation offer over other property investment options?

Serviced accommodation offers flexibility, catering to both short-term and long-term stays. They often come with added services like cleaning and concierge, allowing for higher rental prices.

Why are savvy investors showing interest in serviced accommodation in the UK?

The evolving UK hospitality market, with a growing demand for home-like stays, makes serviced accommodation an attractive investment. They offer the comfort of a home with the luxury of a hotel, catering to the needs of business travellers and tourists alike.


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