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Identifying Prime Locations in the UK for Serviced Accommodation Investment

Posted by Jehan Anis on November 1, 2023



Investing in serviced accommodation aligns well with the changing preferences of modern travellers who seek comfort, flexibility, and a home-away-from-home experience. These accommodations not only offer competitive pricing and amenities but also the flexibility to target a wide range of travellers, from holidaymakers looking for spacious family apartments to business executives in need of proximity to corporate centres. Moreover, the ease of managing serviced accommodation through online platforms and property management companies simplifies the operational aspects, making it an attractive prospect for investors.


When determining the right location for your serviced accommodation investment, it’s essential to consider the unique advantages and opportunities each city presents. Locations like London offer a bustling metropolis with global appeal, while smaller cities like Bath or Stratford-upon-Avon hold their own charm and distinct tourist attractions. As travel trends evolve, so do the expectations of travellers. By assessing the growth potential of a particular location, evaluating the demand for short-term rentals, and understanding the local regulations, investors can capitalise on the benefits of serviced accommodation while ensuring long-term success in this flourishing industry.


Prime Locations in the UK for Serviced Accommodation Investment


London is often the first choice for many investors, and for good reason. As the capital city of the UK, it is a major business and tourism hub, attracting a diverse range of visitors. Areas like Central London, the West End, and Canary Wharf offer a high demand for serviced accommodation due to corporate travellers, tourists, and long-term renters. The city’s excellent transport links, including airports and a well-developed public transportation system, make it an attractive destination for both business and leisure travellers.




Manchester is a thriving city in the North of England and has seen rapid economic growth over the past decade. The city is a hub for business, culture, and education, with a substantial international student population. Areas like the city centre, Salford Quays, and MediaCityUK have a constant demand for serviced accommodation due to corporate travellers and students. The expansion of the city’s transport infrastructure, including the Manchester Airport and tram networks, further enhances its appeal.




Edinburgh, the capital of Scotland, is a UNESCO World Heritage city that attracts millions of tourists every year. The Edinburgh Festival, historic attractions, and a thriving business community contribute to a consistent demand for serviced accommodation. The city’s well-connected airport and extensive rail links make it accessible for travellers. Popular areas for serviced accommodation include the city centre, the Royal Mile, and the West End.




As the UK’s second-largest city, Birmingham is a prominent business and transportation hub. The city boasts a burgeoning tech industry, an international airport, and a world-class conference centre. Areas like the city centre, the Jewellery Quarter, and the business district have a strong demand for serviced accommodation. Birmingham’s excellent rail and road connections make it convenient for both domestic and international travellers.




Liverpool, known for its rich cultural heritage and thriving waterfront, has undergone a significant transformation in recent years. The city attracts tourists, students, and business travellers. The regeneration of the city, including the Liverpool Waters project and the Knowledge Quarter, has resulted in a growing demand for serviced accommodation in areas like the city centre, the Baltic Triangle, and the Albert Dock.




Bristol is a major city in the southwest of England, known for its strong economy, diverse culture, and historic port. With its thriving aerospace, tech, and financial sectors, Bristol draws a constant stream of business travellers. Areas such as the city centre, Harbourside, and Clifton are popular choices for serviced accommodation. The city is well-connected with the M4 and M5 motorways and has an international airport, making it accessible to a wide range of visitors.




Cambridge, renowned for its world-class university and research institutions, attracts a steady flow of international students, academics, and professionals. The city’s historic charm and educational prominence contribute to a continuous demand for serviced accommodation. Areas around the city centre and the Cambridge Science Park are popular choices for investors.




Oxford, another prestigious university city, is famous for its historic architecture, research centres, and academic institutions. With a constant influx of students, researchers, and tourists, Oxford offers a promising market for serviced accommodation. Areas around the city centre, the university precinct, and the Science Area are ideal for investment.




Bath, a UNESCO World Heritage city, is celebrated for its Roman-built baths, Georgian architecture, and cultural festivals. As a popular tourist destination, Bath attracts visitors year-round. The city centre, Royal Crescent, and Bath Spa University areas are excellent locations for serviced accommodation investment.




Stratford-upon-Avon, the birthplace of William Shakespeare, is a charming town with a rich literary and cultural heritage. Tourists, theatre enthusiasts, and history buffs visit throughout the year, making it a great location for serviced accommodation. The town centre and the Royal Shakespeare Theatre area are prime choices for investment.


Factors to Consider


When identifying the best locations for investing in serviced accommodation, it’s important to consider the following factors and key steps to choose the best location for investing in serviced accommodation property:


Tourism Potential: 

Areas with high tourist footfall offer a consistent demand for serviced accommodation. Popular tourist attractions, cultural events, and festivals can significantly impact rental income.


Business Hubs: 

Locations with thriving business districts, corporate offices, and international conferences attract business travellers who often prefer serviced accommodation for longer stays.


Local Infrastructure: 

Accessibility is key. Proximity to airports, train stations, major highways, and public transportation links can make a location more appealing to travellers.


Local Regulations: 

It’s important to be aware of local regulations and licensing requirements for short-term rentals. Compliance with these regulations is crucial for a successful investment.


Market Trends: 

Keep an eye on market trends, including supply and demand, occupancy rates, and average rental income in your chosen location.


Serviced Accommodation & Its Perks


Serviced accommodation, often referred to as serviced apartments or short-term rentals, has emerged as a dynamic and profitable sector within the real estate and investment market. These accommodations are fully furnished properties that cater to the needs of travellers and corporate clients seeking a comfortable and convenient place to stay for short to medium-term periods. Unlike traditional hotels, serviced accommodation offers the advantages of spacious living areas, fully equipped kitchens, and a home-like environment, making them an attractive option for a wide range of guests, including tourists, business travellers, and those in need of temporary housing.


From an investment perspective, serviced accommodation provides a host of compelling benefits. Firstly, it offers a diversified income stream, as it can cater to various customer segments, reducing the reliance on a single market. Additionally, it tends to generate higher rental yields compared to long-term residential rentals. The flexible pricing structure allows property owners to adjust rates according to seasonal demand, maximising returns during peak periods. Moreover, serviced accommodation often enjoys a lower vacancy rate due to its ability to attract a broader audience, ensuring a more stable and consistent income. For investors seeking to capitalise on the growing trend of experiential travel and remote work, serviced accommodation represents a promising avenue for real estate investment.




Investing in serviced accommodation can be a lucrative venture when you choose the right location. The UK offers a variety of promising cities and towns for property investment, each with its own unique appeal. By considering factors like tourism, business opportunities, and local infrastructure, you can make an informed decision that aligns with your investment goals and financial aspirations. As with any investment, thorough research and due diligence are essential to ensure success in the serviced accommodation market.

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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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