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The Growing Popularity of Serviced Accommodation in the UK

Posted by Jehan Anis on June 21, 2023

The Growing Popularity of Serviced Accommodation in the UK A Market Analysis 1

In recent years, the demand for serviced accommodation in the UK has witnessed a significant surge, with more and more travelers and tenants opting for this convenient and flexible lodging option. Serviced accommodation refers to fully furnished properties that are available for short-term or long-term rent and offer a range of amenities and services akin to a hotel. This article aims to provide a comprehensive analysis of the growing popularity of serviced accommodation in the UK, highlighting its benefits, market trends, and the reasons behind its increasing preference among travelers and tenants. 


Introduction to Serviced Accommodation


Serviced accommodation has gained traction as an alternative to traditional hotels and self-catering accommodations. These properties are typically equipped with all the necessary amenities, including kitchen facilities, housekeeping services, and utilities, providing guests with a comfortable and home-like experience. With the rise of online booking platforms and the sharing economy, the availability and accessibility of serviced accommodation options have significantly increased. 



1. Benefits of Serviced Accommodation to Investors


Investing in rent-to-serviced accommodation can provide numerous benefits to investors. Here are key advantages:


1.1 Stable Rental Income: Renting out serviced accommodation, such as furnished apartments or serviced apartments, can yield a stable and consistent rental income. Unlike traditional residential rentals, serviced accommodations typically attract corporate clients, tourists, and individuals in need of temporary housing. These tenants are often willing to pay a premium for the convenience, amenities, and services offered by serviced accommodation. Additionally, the shorter-term nature of the rental agreements allows for more frequent rent adjustments to reflect market conditions, potentially maximizing returns for investors.


1.2 High Occupancy Rates: Serviced accommodation tends to enjoy high occupancy rates due to the flexibility and convenience it offers. Corporate travelers, tourists, and individuals relocating temporarily often prefer the comfort and amenities of serviced apartments over hotels or long-term rentals. The demand for serviced accommodation remains relatively stable, even during economic downturns, as businesses continue to send employees on assignments and people still travel for leisure or personal reasons. This high demand can lead to increased occupancy rates, minimizing the risk of vacancies and ensuring a consistent stream of rental income for investors.


1.3 Reduced Management Hassles: One of the significant advantages of investing in rent-to-serviced accommodation is the reduced management burden for investors. Typically, the management of serviced accommodations is handled by professional property management companies or serviced apartment operators. These entities take care of tasks such as marketing, tenant screening, maintenance, and housekeeping. By outsourcing these responsibilities, investors can benefit from a passive income stream without the day-to-day involvement that is often required in traditional rental properties. This can be particularly appealing to investors who have limited time or prefer a hands-off approach to property management.


1.4 Potential for Higher Returns: Renting out serviced accommodation often allows investors to charge higher rental rates compared to traditional residential properties. The premium rental income, coupled with high occupancy rates, can lead to potentially higher returns on investment. Additionally, investors may have the flexibility to adjust rental rates to respond to market conditions or seasonal demand, further maximizing their returns. Depending on the location and market dynamics, serviced accommodation investments can offer attractive rental yields and capital appreciation potential, making them a compelling choice for investors seeking favorable financial outcomes. 



2. Benefits of Serviced Accommodation to Guests


Serviced accommodation offers a range of benefits to guests, providing a comfortable and convenient lodging option for various types of travelers. Here are three key advantages of staying in serviced accommodation:


2.1 Home-like Comfort: One of the primary benefits of serviced accommodation is the home-like comfort it provides to guests. Unlike traditional hotel rooms, serviced apartments or furnished apartments offer more space, separate living areas, and fully equipped kitchens. This allows guests to enjoy the freedom and flexibility of a home away from home. They can cook their meals, relax in a spacious living room, and have the privacy of separate bedrooms. This level of comfort is especially advantageous for families, groups, or long-term travelers who desire a more spacious and personalized accommodation experience.


2.2 Convenience and Services: Serviced accommodation is designed to cater to the needs of guests, providing a range of convenient services. Depending on the property, guests may have access to amenities such as 24-hour concierge service, housekeeping, laundry facilities, and secure parking. Many serviced apartments also offer additional services like fitness centers, swimming pools, business centers, and complimentary Wi-Fi. These amenities and services enhance the overall guest experience and contribute to a hassle-free and enjoyable stay.


2.3 Cost-Effective Option: Another significant benefit of serviced accommodation is its cost-effectiveness, particularly for extended stays. Compared to hotel rooms, serviced apartments often offer lower rates, especially when booked for longer durations. Additionally, having a fully equipped kitchen allows guests to save money by preparing their meals rather than relying on expensive restaurant dining. The inclusion of amenities such as laundry facilities can also reduce additional expenses. This cost-effectiveness makes serviced accommodation an attractive choice for families, business travelers, and individuals seeking value for money without compromising on comfort and convenience.


2.4 Flexibility and Privacy: Serviced accommodation offers guests a level of flexibility and privacy that may be lacking in traditional hotel settings. Guests have the freedom to come and go as they please, cook their meals at their convenience, and enjoy the privacy of separate bedrooms. This flexibility is particularly beneficial for those on longer trips or individuals who prefer a more independent and self-sufficient accommodation experience. Additionally, serviced apartments often provide a residential neighborhood setting, allowing guests to immerse themselves in the local culture and lifestyle. 



3. Market Analysis of Serviced Accommodation in the UK


3.1 Increasing Demand: The demand for serviced accommodation in the UK has seen a steady rise, driven by various factors. Business travelers, in particular, find serviced apartments to be a preferred choice due to the convenience and amenities they provide. Additionally, the growth of tourism and the popularity of city breaks have contributed to the increased demand for short-term serviced accommodation rentals.


3.2 Urbanization and Infrastructure Development: The ongoing urbanization and infrastructure development in major UK cities have further fueled the demand for serviced accommodation. Cities like London, Manchester, Edinburgh, and Birmingham attract a large number of domestic and international visitors, creating a need for conveniently located and well-equipped lodging options. The availability of serviced apartments in prime city center locations has become a significant advantage in attracting tenants.


3.3 Rise of the Sharing Economy: The emergence of online booking platforms and the sharing economy has transformed the way people search for and book accommodations. Platforms like Airbnb,, and HomeAway have made it easier for property owners to rent out their serviced apartments and for guests to find and book these properties. This accessibility has contributed to the growth of the serviced accommodation market in the UK.


Renting Serviced Accommodation in the UK


Renting serviced accommodation in the UK is a straightforward process. Numerous online platforms allow individuals to search for properties based on location, duration of stay, and specific requirements. It is advisable for tenants to carefully review property listings, read reviews from previous guests, and communicate with the property owners to ensure a smooth rental experience.




The growing popularity of serviced accommodation in the UK can be attributed to its flexibility, cost-effectiveness, privacy, and comfort. With the increasing demand from business travelers, tourists, and tenants seeking temporary housing, the serviced accommodation market in the UK is poised for further growth. Property owners and investors can capitalize on this trend by offering well-maintained and strategically located serviced apartments. As the market continues to evolve, it is essential for stakeholders to stay updated on industry trends and consumer preferences to provide a seamless and satisfying experience to guests and tenants alike. 

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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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