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Is the Serviced Accommodation Market Worth Participating in?

Posted by Jehan Anis on April 10, 2023

Is the Serviced Accommodation Market Worth Participating 1 compressed

Is the Serviced Accommodation Market Worth Participating in? 


Serviced accommodation is the fastest-growing sector of the United Kingdom’s hospitality industry, due to the increasing demand for more private and adaptable accommodation than hotels, particularly in city centres. As an investor, you have a vast number of opportunities to take advantage of.


This means that there are numerous opportunities for property investors like you to generate a substantial profit and create a prosperous portfolio.


As an investor in serviced accommodation, you will rent your property — typically an apartment — to visitors who will stay for several weeks or months in most cases.


Depending on the serviced accommodation model you choose to implement, you may provide additional amenities, such as culinary appliances, towels, and linens, TV, and broadband, as well as a weekly cleaning service.




Serviced accommodation market is a thriving market that offers numerous advantages over other types of rental properties.


While your guests will stay for shorter durations than in a typical rental property, you can charge significantly higher rent in the appropriate areas, and there are strategies we share at Premier Property to increase the average length of a stay.


For instance, one strategy is to invest in a corporate lets property so that you can easily, swiftly, and sustainably strike major deals with employers.


One of the greatest concerns serviced accommodation market investors have is maintaining occupancy.




Star Sterling can instruct you on how to accomplish and maintain full occupancy, though it may require some additional effort.




With well-managed serviced accommodation, you can expect to earn more than £600 net income per month outside of London, and £1000 net income per month in the capital, in the right location.




Location is one of the most crucial variables for keeping your property occupied, so where should you invest?


Tourist destinations are a no-brainer, but you can also achieve great success by providing city-center lodging for professionals on business trips.


Location is undoubtedly a crucial factor in this decision; however, you MUST also consider:




Is there something that can attract travelers throughout the year?


Locations that attract a variety of demographics throughout the year are optimal for maintaining occupancy, so research is essential. Search online to learn about all local events and attractions throughout the year. If you cannot provide parking, you should seek out a property with convenient access to these events and attractions.




Will there be a large number of professionals in the area throughout the year?


Consider locations with numerous company headquarters or conference centres to attract frequent visitors.




In the majority of serviced accommodation market destinations, demand far exceeds supply, but it pays to ensure that you won’t struggle to remain occupied due to an oversupply.


Check sites like and HomeAway to determine how much-serviced accommodation already exists in your area and whether you will be able to compete to keep your property occupied.


Visit as many local serviced accommodation properties as possible, either as a potential buyer if they are for sale, or as a guest if they are not.


This will provide invaluable insight into what is expected of serviced accommodation in the area, and you may be able to gauge the property’s performance by speaking with the owner or manager.




In conclusion, investing in serviced accommodation can be a profitable venture for those looking to participate in the expanding hospitality market. However, it is important to conduct thorough research on the local market demand, competition, and regulatory requirements before making any investment decisions. Key factors to consider include location, property type, amenities, and management strategy. Additionally, it is crucial to establish a strong marketing and distribution strategy to attract and retain guests. With the right approach, investing in serviced accommodation can provide a reliable stream of income and long-term growth potential.

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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

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