The extended stay market in the UK is set to consolidate further, as the stock is expected to reach a record level in 2017. According to latest research by Savills, more than 2,600 units will be delivered next year with the stock level set to increase by 13.8 per cent from 2016.

The biggest growth in the segment will come from the global owner-operators and international investors. Their development ownership in the extended stay segment will increase to 19 per cent between 2017 and 2019 from 10 per cent in 2014.

The UK institutional investors are also showing interest in this segment. They account for 11 per cent of future development schemes expected to be completed between 2017 and 2019. The top 10 operators account for 54 per cent of the development pipeline in the extended stay market.

The stock expansion will be the highest in regional markets (20.5 per cent) and London (8.1 per cent) , Savills has predicted. “This expansion drive is an extension of the trend seen over the last three years that reflects operators growing appetite to develop their own branded portfolios,” Savills said in its report.

If you are interested in investing in the extended stay market in the UK, consult expert property at Strawberry Star by calling any of our global offices.