Short-term rentals have steadily become more and more popular with the passing of time and, regardless of the pandemic’s attempts to paralyse the hospitality and short-term letting sectors, the demand for short stays with a high-quality guest experience has steadily increased after the lifting of lockdown restrictions.
As the dividing line between hotel and short-term rentals continues to blur in the post-pandemic era, the revenue of short-term rentals is expected to grow exponentially in the coming years.
The industry has changed.
According to an OTA Insight article published in early 2022, hospitality business models are evolving and so the convergence of short-term rentals and hotel accommodation is imminent; with hotels investing in modern apartments to explore the ‘aparthotel’ concept and short-term investors purchasing high-quality properties to offer a first-rate hotel-like experience to travellers.
Studies show that despite the stiff competition between the two sectors, 60% of the post-pandemic travellers seeking short-term accommodation prefer to stay in privately managed properties over hotel rooms. Not surprisingly, property managers of short-term rentals and companies like CityHost London are now thriving within a competitive market by offering top-notch services mirroring hotel standards and still providing adaptability to both, owners’ and guests’ demands.
With the ongoing changes in hospitality and guests’ requirements, short-term rentals professionally run by agents are witnessing higher demand for stays due to better quality of hosting and guest service.
The demands of the post-pandemic traveller.
Modern travellers and digital nomads are currently looking for safer ways of travelling and inclining towards residential areas with no crowds, less traffic and limited interaction in public spaces. They are also prioritising freedom and flexibility above anything else, looking for short-term properties and locations where they will find valuable ‘home-away-from-home’ stays while combining leisure and remote work within the same space.
With work flexibility being one of the lasting products of the pandemic, the business-leisure travel is set to stay and the demand for homely and creative accommodation is skyrocketing.
An opportunity for homeowners to thrive.
Many reports have shown that short-term rentals are expanding all over the UK and areas like London still remain some of the most profitable ones. Homeowners trying out this rental model over the past few years have experienced a 30% increase in their rental yields.
As a matter of fact, the popularity of short-term rentals has been noticed not only by homeowners and property investors but also by many UK property development companies that are now investing in Build to Rent (BTR) blocks to meet the demands of short-term rentals. These BTR blocks provide a fusion of high-quality facilities like on-site gyms and luxury décor that have become very popular and attractive among guests from different demographics.
This type of apartment can be a powerful asset for property investors thanks to its hotel-like features. With a combination of comfort, luxury and on-site facilities together with hosting services provided by professionals, their yield through short-term lettings is expected to grow exponentially in the next five years.
Moreover, during the pandemic many homeowners experimented with home improvements that would enhance their property attractiveness in their listing platforms. The results of their efforts are paying off. Guests are not only looking for comfort and luxury but also for more creative spaces where they can find peace, connect with themselves, with nature and create authentic and valuable life experiences.