The capital’s short term rental market is continuing to perform very strongly, with serviced apartments leading the recovery following the pandemic.
Performance data to the end of September 2021 from a tracking study conducted in partnership with the UK Short Term Accommodation Association found that short term rentals averaged 76.2% for September – an increase of 6.9% on August and 29.3% up year-on-year (y-o-y). Occupancy for serviced apartments averaged 81.5% which is a 6.8% increase on August and a 60.6% y-o-y rise. Hotel occupancy averaged 62.4% - up 10.5% on August and a y-o-y rise of 111.6%.
Short term rentals led the way for ADRs in September averaging £151.40, up 9.4% on August and 38.6% y-o-y. Serviced apartments earned an average of £150.60, a rise of 10.8% on August and 24.0% up y-o-y. Hotels averaged an ADR of £138.50 which was a monthly increase of 23.3% and a y-o-y uplift of 48.7%.
The average length of stay for short term rentals rose in September to 18.8 days from 14.3 days in August. There is no comparable data for hotels and serviced apartments for this metric.
Merilee Karr, Chair of the STAA and CEO of UnderTheDoormat, said: “It’s really encouraging to see the strength of recovery being shown by London’s major accommodation sectors, and our sector leading the way in providing the type of accommodation consumers are looking for.
"These results indicate that people are prepared to pay more for self-contained properties. Seeing further increases in occupancy, ADRs and length of stays in September after the traditional summer holiday season is a good indicator that business travel is returning and that workers and their employers are opting for short-term lets as more flexible and secure places to stay whilst heading back into their London offices.
"And, with travel restrictions more relaxed, we are also seeing the gradual return of international travellers who are so valuable to the London hospitality sector. It all points to a more optimistic outlook for the recovery of the capital’s accommodation and tourism sectors.”
Patrick Mayock, STR’s VP of research & development, adds: “Our pilot study shows that short-term rentals are proving to be a popular choice for people visiting London whether for business or leisure. The fact that occupancy and average daily rates have risen after the peak month of the holiday season indicates a sector that is getting back to full health relatively quickly.”