Follow our blog to keep yourself updated and become an investment pro.
Your search results

Future of Serviced Accommodation in the UK

Posted by Jehan Anis on August 15, 2023

In recent years, the hospitality industry has undergone a significant transformation, largely driven by changing consumer preferences and technological advancements. One segment of this industry that has seen remarkable growth and evolution is serviced accommodation in the United Kingdom. Serviced accommodation, also known as extended stay or aparthotels, offers a unique blend of the comfort and convenience of home with the amenities and services of a hotel. As we gaze into the future, it’s clear that the landscape of serviced accommodation in the UK is poised for even more innovation and expansion.


Current Landscape of Serviced Accommodation


Before we delve into the future, let’s take a snapshot of the present. Serviced accommodation in the UK has gained popularity due to its flexibility, comfort, and value proposition. These accommodations provide travelers with more space, privacy, and amenities than traditional hotel rooms. They are especially favored by business travelers, families, and those seeking longer stays. In major cities like London, Manchester, and Edinburgh, a diverse range of serviced accommodation options is available, from modern apartments to stylish townhouses.


Technological Integration


Technology’s impact on the hospitality industry has been transformative, and this influence extends to serviced accommodation. In the coming years, technological integration will play an even more profound role in enhancing the guest experience. Smart home technologies, once considered luxurious additions, are on the brink of becoming standard features in serviced accommodations. Voice-controlled devices, such as virtual assistants, will enable guests to control lighting, temperature, entertainment systems, and even room service requests with simple verbal commands. Automated climate control systems will ensure that guests enjoy their preferred room temperature without manual adjustments.


Remote check-in and check-out procedures will streamline the arrival and departure processes, allowing guests to bypass traditional front desks. This not only saves time but also reduces unnecessary physical interactions, aligning with the growing trend of contactless experiences. The introduction of virtual keys on mobile devices will further revolutionize guest access, eliminating the need for physical key cards.


Furthermore, the integration of augmented reality (AR) and virtual reality (VR) could transform how potential guests explore and select their preferred accommodations. Instead of relying solely on static images and written descriptions, prospective guests could virtually “walk through” the serviced apartment using VR headsets. This immersive experience would allow them to navigate the layout, visualize the space’s flow, and interact with its amenities before making a reservation decision. This innovative approach could dramatically enhance transparency and assist guests in making more informed choices, fostering a deeper sense of anticipation for their upcoming stay.


Sustainable and Eco-Friendly Practices


The escalating concern for the environment is reshaping various industries, and the future of serviced accommodation is no exception. Today’s travelers increasingly prioritize eco-friendly options, and accommodations that demonstrate sustainability initiatives are poised to gain a competitive edge. In response to this demand, serviced accommodation providers are likely to invest heavily in sustainable practices.


Energy-efficient appliances will become the norm, minimizing energy consumption without compromising guest comfort. LED lighting, smart thermostats, and motion sensors will contribute to reducing energy waste. Waste reduction initiatives will also be at the forefront, with providers embracing recycling programs, minimizing single-use plastics, and promoting responsible waste disposal.


To demonstrate a strong commitment to sustainability, some serviced accommodation providers might integrate renewable energy sources into their properties. Solar panels, for example, could power common areas or even individual apartments, significantly decreasing the carbon footprint of the accommodation. Additionally, partnering with local suppliers to source organic toiletries and locally-produced breakfast provisions will not only support the local economy but also showcase a dedication to promoting sustainable living.


Guests will appreciate accommodations that align with their environmental values, and by embracing sustainable practices, serviced accommodation providers will not only attract eco-conscious travelers but also contribute positively to the broader movement for environmental preservation.


Rise of Co-Living Spaces


The concept of co-living has been gaining momentum in recent years as people seek more community-oriented living arrangements. This trend is expected to extend its influence to the realm of serviced accommodation, introducing a new era of communal living for travelers. Co-living serviced apartments will feature shared spaces, including fully-equipped kitchens, inviting lounges, and dynamic co-working areas.


The communal aspect of co-living spaces fosters social interaction among guests. Travelers from diverse backgrounds, cultures, and professions will have the opportunity to connect, share experiences, and exchange ideas. Co-living accommodations cater to those seeking more than just a place to sleep – they provide an environment that encourages collaboration and networking. Business travelers can discuss strategies over breakfast, digital nomads can brainstorm in the co-working spaces, and solo adventurers can form new friendships in the communal lounges.


The rise of co-living spaces within the serviced accommodation sector represents a shift towards creating a sense of belonging and community for travelers. It taps into the growing desire for meaningful connections while enhancing the overall guest experience by offering opportunities for shared memories and collaborations that extend beyond the confines of the accommodation itself.


Enhanced Guest Services


Guests’ expectations for services in their accommodations have evolved, and the future of serviced accommodation will reflect this shift. Traditional concierge services will likely be augmented by technology, with chatbots and virtual concierges assisting guests around the clock. These digital concierges can provide information about local attractions, recommend dining options, and even help with booking transportation.


In addition to digital services, personalised experiences will remain a key focus. Serviced accommodation providers might offer curated experiences based on guests’ interests, such as food tours, art workshops, or fitness classes. This level of personalization will create memorable stays and foster guest loyalty.


Regulations and Quality Standards


As the popularity of serviced accommodation continues to rise, it’s expected that regulations and quality standards will become more standardised and stringent. This will benefit both guests and operators by ensuring consistent and safe experiences. The government and relevant industry bodies might introduce guidelines related to safety, cleanliness, accessibility, and pricing transparency.


To meet these standards, serviced accommodation providers will need to invest in staff training, regular maintenance, and compliance with health and safety regulations. This commitment to quality will contribute to building trust and credibility within the industry.


Shift in Booking Platforms


The way guests discover and book serviced accommodation is likely to undergo changes as well. While online travel agencies (OTAs) have played a significant role in connecting guests with accommodations, the future might see a shift toward direct booking. Serviced accommodation providers could invest in user-friendly websites and mobile apps that allow guests to browse options, personalise their stays, and make reservations seamlessly.


Direct booking could lead to cost savings for both guests and operators by eliminating third-party booking fees. To incentivize direct bookings, providers might offer exclusive discounts, loyalty programs, or additional amenities to guests who book directly.


Benefits of Investing?


Investing in serviced accommodation offers a plethora of compelling benefits that make it an enticing proposition for real estate investors. One of the primary advantages is the potential for higher returns on investment. Serviced accommodations tend to generate more income compared to traditional long-term rentals due to their ability to command premium nightly rates. This is especially true in prime city center locations or popular tourist destinations, where travelers are willing to pay a premium for the convenience, amenities, and personalized services that serviced accommodations provide. Additionally, the flexibility to adjust rates based on demand spikes allows investors to capitalize on peak travel seasons, further boosting revenue.


Another significant benefit is the versatility of serviced accommodation for various target markets. These accommodations cater not only to tourists but also to business travelers, expatriates, and individuals seeking temporary housing during relocations or renovations. This diverse demand base reduces the risk of vacancies and enhances occupancy rates, ensuring a steady stream of rental income. Furthermore, the potential for longer average stays in serviced accommodation compared to traditional hotels or short-term rentals contributes to greater stability and predictability in income generation.


Investing in serviced accommodation brings about financial advantages through the potential for higher returns and stable income streams. Moreover, the versatility of the market and the ability to cater to various types of travelers add an extra layer of security to the investment. As the hospitality industry continues to evolve, serviced accommodation stands as a promising avenue for investors seeking to capitalize on changing travel trends and consumer preferences.




The future of serviced accommodation in the UK is brimming with exciting possibilities. From technological advancements to sustainable practices, co-living spaces to enhanced guest services, the industry is poised to deliver unparalleled experiences to travellers. As consumer preferences continue to evolve, serviced accommodation providers will need to stay nimble and adapt to changing demands. By embracing innovation, sustainability, and quality, the UK’s serviced accommodation sector is set to redefine hospitality for the modern traveller. So, whether you’re a business traveller seeking a home away from home or a family looking for a spacious retreat, the future of serviced accommodation promises a delightful journey of comfort and discovery.

Leave a Reply

Your email address will not be published.

Compare Listings

Enter your details to download the Guide


Established in 2019, Star Sterling is a family-run business based in the UK. As a cutting-edge investment advisory firm, we aim to deliver top-of-the-line investment services to all our valued clients. Leveraging a dynamic combination of finance and real estate expertise, we specialize in B2SA, R2SA, and BTL property investments.
Our professionals work tirelessly to identify the best investment solutions for estate agents, landlords, and investors and cultivate long-term partnerships for future success. We partner with businesses to find suitable properties to provide premium accommodation on a short-term basis to business travelers and contractors. By creating customized strategies for our clients, our services extend beyond the traditional confines of real estate

Our Typical Investors are

✓ People with a minimum of £7,500 to invest into Rent To Serviced Accommodation and £50,000 into Below Market Value property deals
✓ Looking to build high cash-flowing Rent To Serviced Accommodation portfolio (either passively or self-managed)
✓ Looking to buy Below Market Value residential properties with 8% to 10% annual return on capital
✓ Looking to achieve financial freedom through property investment in the UK
✓ Looking for safe and secure investment opportunities with low risk
✓ Looking to build a legacy for their family’s future

Subscribe to get the latest Updates.