Serviced accommodation

Serviced accommodation refers to fully furnished properties that are available for short- to medium-term rental periods, typically ranging from a few nights to several months.[1] These properties provide residential-like amenities and services, such as utilities, housekeeping, and internet access, often aimed at individuals or groups who require temporary lodging, often for business or relocation reasons.[2]

Research indicates continued growth in the serviced accommodation sector in recent years.[3] According to a 2024 report by Savills, between 2021 and 2023, the UK’s extended stay sector recorded an average annual revenue per available room (RevPAR) 27.5% higher than that of traditional hotels, highlighting strong performance as business travel patterns evolved and more professionals sought alternative lodging solutions.[4]

The rise of remote and hybrid work models has also played a key role in boosting demand for temporary, flexible living arrangements with amenities suited to remote working.[1]

Regulatory challenges

Serviced accommodation, like other forms of short-term rentals, faces a variety of regulatory challenges in many locations. Local governments often introduce zoning laws, licensing requirements, and taxation policies to address concerns related to housing availability and the impact of short-term rentals on local communities. These regulations vary significantly between cities and countries.[5]

In cities like New York, short-term rental laws can affect serviced accommodation providers. For example, Local Law 18 in New York City imposes restrictions on the number of days a property can be rented out for short-term stays, as well as safety regulations and insurance requirements.[6] Similarly, in Paris, short-term rental properties must be registered with local authorities, and fines can be imposed on landlords who fail to comply with these regulations.[7]

Such regulations are an ongoing consideration for serviced accommodation providers, as they must navigate local legal frameworks to ensure compliance and avoid potential penalties.[5]

Criticisms and concerns

Critics of the serviced accommodation sector have raised concerns about its potential impact on local housing markets. Studies in several major cities suggest that the conversion of residential properties to short-term rentals, including serviced accommodations, may contribute to housing shortages and increased rental costs for local residents.[8] Additionally, community advocates in tourism-heavy areas have noted concerns about the changing character of residential neighborhoods when properties are predominantly used for temporary accommodation.[9]

See also

References

  1. ^ a b Oblinger, N (2023). "Serviced Apartments/Short-Term Rentals Market in Europe: A Comparative Study in Five European Countries" (PDF). European Association of Real Estate Professions: 6.
  2. ^ Greenberg, D.A.; Rogerson, J.M. (2019). "The Serviced Apartment Sector in the urban global south: evidence from Johannesburg, South Africa". GeoJournal of Tourism and Geosites. 26 (3): 916–929. doi:10.30892/gtg.26319-407.
  3. ^ European Commission (2022). “Inception Impact Assessment”. Brussels: European Commission.
  4. ^ "Spotlight: European Serviced Apartments 2024". www.savills.co.uk. 2017-07-24. Retrieved 2025-04-23.
  5. ^ a b Edgar, Tamara (2023-06-13). "Availability of Corporate Housing Around the World". Situ. Retrieved 2025-04-23.
  6. ^ "Registration Law - OSE". www.nyc.gov. Retrieved 2025-04-23.
  7. ^ "Paris joins Barcelona in Airbnb crackdown: Will it mean less crowds?". euronews. 2024-11-29. Retrieved 2025-04-23.
  8. ^ Colomb, Claire; Moreira de Souza, Tatiana (2021). "The Airbnb effect – Part 2: How do short term vacation rentals impact housing markets?". www.rics.org. Retrieved 2025-04-23.
  9. ^ "Introduction of a use class for short term lets and associated permitted development rights". GOV.UK. Retrieved 2025-04-23.
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