Blog API

Author: David Sassoon

  • Serviced apartment rates rise as availability dwindles……..

    Serviced apartment rates rise as availability dwindles……..

    Report by David Sassoon at Destination Nation

    Destination Nation reports that serviced apartment prices are rising due to decreasing availability. This trend poses a growing challenge for corporate travel buyers seeking serviced apartment accommodations, as outlined in our article below.

    Weexamines key factors influencing major cities and highlights how new legislation is impacting supply.

    Here are the key findings in eight popular cities for business travel:

    London

    Housing shortages are driving up rents in many parts of the capital, with a notable increase in short-term lets via digital booking platforms. Rising energy prices and other costs across the UK and Europe have further inflated prices. Availability has declined, especially for two-bedroom apartments, with many suppliers closing or selling. Marlin Apartments plans to expand its inventory over the next 12 to 24 months to meet the increased post-pandemic demand for larger spaces.

    Edinburgh

    Post-pandemic, there has been a decrease in individuals renting out single vacation lets, but aparthotels, exempt from this trend, present a lucrative option for international investors. Availability is scarce, leading to high accommodation prices. New regulations will exacerbate Edinburgh’s already limited short-stay inventory during peak seasons. Strict rules on individual short-stay lets are expected to reduce overall product diversity, impacting the extended-stay sector.

    Dublin

    The city faces a premium on short-term accommodation, with a 33% increase in arrivals and a 6% decrease in available stock. Regulatory challenges are causing owner-operators to exit the sector, reducing the variety of available properties. This scenario may favor the aparthotel model, attracting investors to the extended-stay sector.

    Paris

    Aparthotels have gained prominence due to the pandemic, leading to increased difficulty in finding availability. New regulations addressing short-term rentals are likely to add pressure on accommodation options for business travelers.

    Amsterdam

    New regulations discourage short-term property rentals, reducing overall availability and the diversity of the extended-stay sector. The residence permit system, requiring registration for stays over 90 days, further affects availability. However, the Dutch government is working to improve affordability and availability in the rental housing market, benefiting the extended-stay sector.

    New York

    High demand for short-term apartment lets in New York City makes it more profitable for landlords than long-term rentals. This trend is expected to attract more investment in aparthotels and build-to-rent projects, including office conversions into apartments or hotels. The strict regulatory environment limits both the availability and diversity of extended-stay accommodations, impacting the ‘local stay’ experience valued by some travelers.

    Singapore

    Strict licensing rules have removed private residential short-term properties from the market, reducing property type diversity but not overall room availability. The sector remains highly professionalized and thriving, with significant investments in hotels, aparthotels, and serviced apartment buildings.

    Sydney

    Commercial short-term rental availability remains strong, with a preference for accommodations that facilitate work-from-home arrangements. The market shows no signs of slowing down and, similar to Singapore, is driving investment into residential long-stay serviced apartments, which are unaffected by laws limiting short-term vacation rentals of individual properties.

  • 2024 Serviced Apartment Market Overview

    2024 Serviced Apartment Market Overview

    Global Serviced Accommodation – 2024 Market Overview: Destination Nation, By David Sassoon

    The Serviced Apartment and Corporate Housing Markets in 2024: Trends, News, and Regional Growth

    As we step half way into 2024, the serviced apartment and corporate housing markets are witnessing significant transformations, driven by evolving business needs, technological advancements, and changing traveller preferences. This article delves into the latest trends, notable news, and regional growth patterns shaping these markets in 2024.

    Key Trends in 2024

    1. Rise of Hybrid Accommodation Models

       The blurring lines between traditional hotels, serviced apartments, and co-living spaces are giving rise to hybrid accommodation models. These models offer the flexibility and homely comfort of serviced apartments with the services and amenities of hotels. This trend caters to the modern traveller seeking longer stays and a more personalized experience.

    2. Increased Demand for Long-Stay Solutions

       With the continued rise of remote work and digital nomadism, there is a growing demand for long-stay accommodation solutions. Serviced apartments and corporate housing providers are expanding their offerings to cater to professionals who require extended stays with home-like amenities and work-friendly environments.

    3. Sustainability and Eco-Friendly Practices

       Sustainability continues to be a focal point in the hospitality industry. In 2024, we see a heightened emphasis on eco-friendly practices, from energy-efficient appliances to sustainable building materials. Serviced apartment providers are integrating green technologies and promoting responsible travel to attract environmentally conscious clients.

    4. Technological Integration

       The integration of technology is transforming the serviced apartment sector. Keyless entry, smart home devices, high-speed internet, and digital concierge services are becoming standard offerings. These technological advancements enhance the guest experience and streamline operations.

    5. Personalization and Customization

       Personalization is key in the serviced apartment market. Providers are leveraging data analytics to understand guest preferences and offer customized services. From tailored welcome packs to personalized recommendations for local attractions, the focus is on creating a unique and memorable stay for each guest.

    Regional Growth Patterns

    1. North America

       In North America, the corporate housing market is experiencing robust growth, particularly in tech hubs like NYC, Silicon Valley, Austin, CA and Toronto. The demand is driven by a combination of corporate relocations, project-based assignments, and an influx of remote workers. The region is also seeing a surge in sustainable and tech-integrated accommodations.

    2. Europe

       Europe’s serviced apartment sector is expanding rapidly, with significant growth in cities like London, Paris, Berlin, Zurich and Amsterdam. The post-Brexit business environment and the revival of business travel are key drivers. Additionally, the focus on hybrid models and luxury serviced apartments is gaining traction, catering to both business travelers and tourists seeking extended stays.

    3. Asia-Pacific

       The Asia-Pacific region is witnessing exponential growth, led by cities such as Singapore, Tokyo, and Sydney. The region’s economic dynamism and increasing foreign direct investments are propelling the demand for corporate housing. Moreover, the emphasis on technological advancements and smart living solutions is prominent in this market.

    4. Middle East and Africa

       In the Middle East, Dubai and Riyadh are emerging as hotspots for serviced apartments, driven by large-scale events, tourism, and business expansions. In Africa, cities like Johannesburg and Nairobi are seeing growth, supported by multinational corporations and a burgeoning middle class.

    5. Latin America

       Latin America’s serviced apartment market is growing steadily, with key markets in Mexico City, São Paulo, and Buenos Aires. The region’s economic diversification and improving business climate are attracting international companies and long-term travelers.

    Notable News in 2024

    – Major Acquisitions and Mergers

      The serviced apartment sector is seeing consolidation through major acquisitions and mergers. Leading players are expanding their portfolios and entering new markets to enhance their global footprint.

    – Launch of Innovative Brands

      New and innovative brands are being launched, focusing on niche markets such as eco-conscious travelers, luxury long-stays, and tech-savvy professionals. These brands aim to differentiate themselves through unique value propositions.

    – Expansion of Loyalty Programs

      To retain and attract clients, serviced apartment providers are expanding their loyalty programs. These programs offer exclusive benefits, personalized services, and rewards that cater specifically to long-term guests.

    Hotel Brands Expanding into Apart-Hotel and Apartment Concepts: A 2024 Overview

    In response to the growing demand for flexible and extended-stay accommodations, several prominent hotel brands are expanding their portfolios to include apart-hotels and apartment concepts. These new ventures cater to the evolving needs of modern travelers, offering the comforts of home with the amenities and services of traditional hotels. 

    Marriott International Launches “Residence Collection”

    Accor Expands into Long-Stay Market with “Aparthotel by Novotel”

    Hilton Unveils “Hilton Homes” Concept

    Hyatt Debuts “Hyatt Stay” for Extended Stays            

    Radisson Red Ventures into Apart-Hotel Market

    Conclusion

    The serviced apartment and corporate housing markets in 2024 are marked by dynamic changes and significant growth. The trends of hybrid accommodation models, long-stay solutions, sustainability, technological integration, and personalization are reshaping the landscape. With robust regional growth and notable industry developments, the sector is poised for an exciting year ahead. As the market evolves, providers that adapt to these trends and meet the changing needs of travelers will thrive in this competitive environment.

  • New York now world’s costliest city for expats

    New York now world’s costliest city for expats

    New York has claimed the top spot as the world’s most expensive city for expats, overtaking Hong Kong, according to the latest global survey by ECA International. The strength of the dollar, coupled with high inflation and rising rental prices, propelled New York to the number one position in the survey covering 207 cities across 120 countries and territories. Geneva holds onto its third place, remaining the most expensive location in Europe for expatriates, followed by London in fourth. However, other UK cities, including Birmingham, Cardiff, and Belfast, dropped outside the top 100 this year.

    ECA International, noted that the UK is facing a cost of living crisis, driven by rising costs in food, utilities, and housing prices. Despite this, all UK cities, except London, have seen a decline in the global ranking, primarily attributed to the weakening pound, making the country more affordable for international visitors.

    The past year, marked by the Russian invasion of Ukraine, has introduced exceptional circumstances affecting expat costs globally. Cities hosting Ukrainian refugees experienced surges in accommodation costs, contributing to an overall increase in expat expenses. For instance, Polish cities, particularly Krakow and Warsaw, witnessed substantial rises in rental prices.

    Russian expatriates fleeing to cities like Dubai, Yerevan, Nicosia, and Tbilisi also experienced heightened demand and increased rental costs. Dubai, UAE, rose to 12th place in the global rankings due to nearly a third surge in rents. Tbilisi, Georgia, saw rents increase by over a fifth.

    Istanbul emerged as the biggest riser in the rankings, climbing 95 places to 108th, driven by a combination of factors, including the impact of the war in Ukraine and economic policies of President Erdogan. The city experienced an 80% increase in prices, partly due to higher demand from displaced Turkish nationals after an earthquake in February.

    In Europe, inflation played a significant role in reshuffling the rankings, with over half of cities moving up the index, particularly in the eurozone. Scandinavia, however, witnessed cities like Oslo, Stavanger, Stockholm, and Gothenburg slipping down the table due to the impact of weakening currencies.

    The strength of the dollar propelled all US cities up the rankings, with Mexico City being the most significant riser in North America, reaching 92nd place due to the strength of the peso and high inflation. In Asia, Singapore made significant gains, entering the top five most expensive cities globally, while Chinese cities dropped in the rankings due to a weaker yuan and lower inflation rates.

    The global top 20 cities for expat costs in 2023 (2022 ranking in brackets) are as follows:

    1. New York (2)
    2. Hong Kong (1)
    3. Geneva (3)
    4. London (4)
    5. Singapore (13)
    6. Zurich (7)
    7. San Francisco (11)
    8. Tel Aviv (6)
    9. Seoul (10)
    10. Tokyo (5)
    11. Bern (16)
    12. Dubai (23)
    13. Shanghai (8)
    14. Guangzhou (9)
    15. Los Angeles (21)
    16. Shenzhen (12)
    17. Beijing (14)
    18. Copenhagen (18)
    19. Abu Dhabi (22)
    20. Chicago (25)
  • Serviced Apartments vs. Hotels: A 2023 Market Overview

    Serviced Apartments vs. Hotels: A 2023 Market Overview

    In the ever-evolving world of travel and accommodation, one of the significant shifts we’ve witnessed in recent years is the growing popularity of serviced apartments. Traditionally, hotels have been the go-to choice for travelers, but serviced apartments have been making their mark as a formidable competitor in the accommodation industry. As we step into 2023, it’s essential to examine the key differences and advantages of serviced apartments versus hotels.

    Serviced Apartments The Rising Star

    The Concept

    Serviced apartments are fully furnished apartments equipped with all the amenities and services you’d expect from a hotel. These include daily or weekly housekeeping, concierge services, and often, a kitchen or kitchenette. They cater to both short-term and long-term stays, making them an appealing choice for a wide range of travelers.

    Flexibility and Space

    One of the significant advantages of serviced apartments is the generous space they offer. These accommodations come in various sizes, from studios to multiple bedrooms, providing ample room for families, business travelers, and anyone seeking a more home-like experience. The presence of a kitchen or kitchenette allows guests to prepare their meals, adding a touch of homeliness to their stay.

    Cost-Effective

    Serviced apartments often prove to be more cost-effective than hotels, especially for longer stays. With the ability to cook your meals, you can cut down on dining expenses. Additionally, many serviced apartments offer competitive rates and discounts for extended bookings.

    Privacy and Comfort

    Privacy is a key selling point for serviced apartments. You can come and go as you please, and there’s a sense of independence that’s hard to find in a hotel. This factor is especially appealing for those who value a quiet and peaceful environment.

    Local Experience

    For those looking to immerse themselves in the local culture and lifestyle, serviced apartments are often situated in residential areas, offering a more authentic experience. You’ll find yourself living among locals, exploring neighborhood markets, and getting a genuine taste of the destination.

    Hotels: The Time-Tested Choice

    Consistency and Amenities

    Hotels have long been the standard for travelers worldwide, and for a good reason. They offer consistency and a wide array of amenities, from room service to fitness centers, swimming pools, and on-site dining. You know what to expect when you book a hotel room.

    Service and Convenience

    Hotels have a dedicated staff available around the clock to cater to your needs. Whether it’s arranging transportation, providing concierge services, or handling room service requests, hotels excel in ensuring guests’ convenience.

    Brand Loyalty

    Many travelers are loyal to specific hotel chains due to the reliability and quality they offer. Frequent guests often receive rewards, discounts, and loyalty program benefits, making hotels an attractive option for repeat visitors.

    Market Overview

    In 2023, the choice between serviced apartments and hotels remains a matter of personal preference and travel goals. However, there are some noticeable trends to consider:

    • Blurred Lines: Some hotels have started to incorporate serviced apartment-like features, such as kitchenettes and extended-stay options, while serviced apartment providers are enhancing their services to compete with hotels.
    • The Rise of Hybrid Models: Hybrid models, offering the best of both worlds, are emerging. These accommodations combine the spaciousness and convenience of serviced apartments with the amenities and services of hotels.
    • Evolving Customer Demands: Travelers in 2023 are seeking more than just a place to sleep. They want experiences, local immersion, and the ability to adapt their accommodation to their unique needs.

    In conclusion, whether you opt for a serviced apartment or a hotel in 2023, you have a plethora of options to choose from. Your decision should be guided by the purpose of your trip, your personal preferences, and your budget. The travel and accommodation industry continues to adapt to meet the ever-changing demands of travelers, offering a diverse range of choices for your next journey.

    Remember, it’s not about whether one is superior to the other, but about finding the right fit for your specific travel needs and desires. The future of accommodation is exciting, as the industry continues to evolve and diversify to cater to the diverse preferences of modern travelers.

  • UK retains second spot in Europe for FDI

    UK retains second spot in Europe for FDI

    By David Sapsted – Relocate Global

    Political upheaval in the UK are believed to be behind a slight fall in foreign direct investment (FDI) last year. Yet the nation retained its position as second most attractive place in Europe for overseas funding, thanks to its ‘global approach’.

    This year’s UK Attractiveness Survey from EY also showed that the UK once again ranked highest in Europe for brand new FDI projects and continued to deliver more total jobs and more jobs per project than its major competitors. And while London remained the most popular place for investment, Scotland and several English regions achieved sizeable increases in attracting new projects.

    UK second, but ‘adds most value’ to FDI projects

    Overall, the UK recorded 929 FDI projects in 2022, down from 993 in 2021. Once again, France topped the European table with Germany coming in at third place.”But the UK performed well on project value, delivering the highest jobs total in Europe, more jobs per project than Germany or France, a strong R&D performance, and Europe’s most ‘new’ projects,” reported EY.FDI in tech projects fell by 23.3 per cent last year, proving to be “a key factor in the UK’s overall project decline”, but the nation remained ahead of the rest of Europe in the sector.The survey found that the US and India were the leading sources of UK FDI last year. Almost a quarter of projects had their origins in the US, while India accounted for 8.8 per cent, representing 58.2 per cent of all Indian-backed projects in Europe in 2022, up from 51.2 per cent the previous year.

    UK’s ‘global approach’ appreciated by investors

    Peter Arnold, EY’s UK chief economist, said: “The UK’s FDI origins are evidence of the country’s global approach, which has been particularly important since its departure from the EU.”Places like India, Canada and Australia have risen up the list of the UK’s top investors in recent years, with the UK able to leverage strong cultural links to attract investment that isn’t as accessible for European competitors.”The UK’s accession to the CPTPP and the potential for new trade deals, including with India, present further opportunities for an increasingly global tilt for the UK.”The latest survey comes on the heels of one a month ago which showed that Britain was still by far the most attractive location in Europe for FDI in financial services. EY’s Attractiveness Survey for Financial Services found that the UK attracted 76 financial services projects in 2022 – an increase of 13 projects on 2021 – while second-place France secured 45 FDI projects, a decrease of 15 on the previous year.

    UK regions increasingly attractive as more jobs created

    In the latest survey, London recorded 299 FDI projects in all sectors in 2022, down from 394 in 2021. And although the capital remained by far the most favoured location, Scotland and English regions made marked progress.In fact, Scotland remained the most attractive place in the UK for FDI in 2022 outside London. EY recorded 126 inward investment projects, representing nearly 14 per cent of total projects and the highest percentage yet in Scotland.South of the border, all Northern regions, the East Midlands, the East of England and Wales saw FDI project numbers rise by 10 per cent.Alison Kay, managing partner for client service at EY UK & Ireland, said: “Europe had a challenging 2022 for inward investment, with overall projects broadly flat. But, digging into the detail, the UK has a strong investment story to tell.“Investment intentions are at a record high and almost half of the investors surveyed think the UK’s attractiveness will improve in the near term. Significantly, the UK’s clear focus on project value over volume continues to bear fruit.”While the UK is behind France on the total number of projects, it is Europe’s clear leader when it comes to strategically important FDI. Over one in four UK projects were linked to Research & Development or new company headquarters – France managed under one-in-five – while UK projects tend to be linked to more jobs than those in France or Germany.”The survey found that, for projects where job creation was forecast, the UK led Europe on total jobs last year (47,000), ahead of Spain (39,000) and France (38,000).As far as investments in projects classified as ‘new’ – as opposed to re-investments or extensions – the UK retained its position as Europe’s leading nation for such projects for a second year in a row. Of the UK’s 929 total projects in 2022, 646 were new.Looking at why overall numbers were down, EY concluded: “Political uncertainty and the ongoing impact of Brexit on trade and investment will likely have played a part in the UK’s performance – but Europe-wide factors, such as high energy prices and high inflation, will have had an impact on the UK’s attractiveness, too.”

  • New York now world’s costliest city for expats

    New York now world’s costliest city for expats

    by David Sapsted 12 JUNE 2023 – Relocate Global

    New York has replaced Hong Kong as the most expensive city in the world for expats to live in, according to this year’s global survey by ECA International.

    Hong Kong topped the data, software and global mobility company’s Cost of Living Rankings over the previous four years. But, the strength of the dollar in 2023, along with high inflation and rental price increases, saw the Big Apple move to No 1 in the survey of 207 cities in 120 countries and territories.

    Most expensive places to live in Europe

    Third-placed Geneva remains the most expensive location in Europe for expatriates, followed by London in fourth place, although other UK cities dropped down the table this year with Birmingham (115th), Cardiff (118th) and Belfast (123rd) all falling outside the top 100.Steven Kilfedder, head of production at ECA International, said: “The cost of living crisis in the UK persists, with rising costs driven primarily by food, utilities, and housing prices.”Despite these challenges, all UK cities bar London have experienced a decline in the global ranking. This can largely be attributed to the weakness of the pound, which has made the country cheaper for people coming to the UK from other countries.”ECA, which has been researching the cost of living globally for 50 years, bases its finding on factors such as the cost of accommodation, food, public utilities, entertaining and services commonly purchased by assignees.

    The impact of exceptional circumstances

    Aside from global inflation, the past year has seen one exceptional circumstance that has affected expat costs in many countries: the impact of the Russian invasion of Ukraine.”Accommodation costs in locations where many Ukrainian refugees have fled the war have surged, making these cities more expensive for everyone including expatriates,” said ECA.”Polish cities have seen the biggest impact, with colossal rises in rental prices of between 25 and 50 per cent, which have pushed Krakow up 23 places in the global rankings to 178th and Warsaw up 11 places to 158th.”The same scenario has happened for Russians fleeing to cities such as Dubai, Yerevan, Nicosia and Tbilisi, in order to avoid possible mobilisation as a result of the war. Rents in Dubai, UAE, rose by almost a third, pushing the city up to 12th in the global rankings, while rents also rose by more than a fifth in Tbilisi, Georgia – as supply could not rise to meet the increased demand from Russian expatriates.”However, the biggest riser in this year’s rankings is Istanbul, which has gone up 95 places to 108th “due to a myriad of factors”.Mr Kilfedder said: “While the city has been impacted by the war in Ukraine, the main reason behind prices increasing by over 80 per cent is the economic policies of the recently re-elected President Erdogan. Rents have also gone up partly due to increased demand from displaced Turkish nationals after February’s earthquake.”

    Inflation weighs on Europe

    In Europe as a whole, just over half of cities – and almost two-thirds in the eurozone – have moved up the index, primarily as a result of inflation.However, in Scandinavia, Oslo, Stavanger, Stockholm and Gothenburg fell down the table. “Our Cost of Living rankings are affected by two factors: prices and exchange rates,” said Mr Kilfedder.”Even when prices are rising quickly as they are in much of Europe, a city can become comparatively cheaper for visitors if the currency is weaker. This is the case for Norwegian and Swedish cities, where the inflation rates peaked at around ten per cent, but their rankings have plummeted by an average of 10 places due to the weakening of their respective currencies.”On the other hand, the strength of the dollar pushed up the rankings for all US cities this year, though the biggest riser across North America has been Mexico City, which has risen to 92nd because of the strength of the peso and high inflation.Meanwhile in Asia, ECA reported: “Hong Kong’s fall in the ranking was matched by nearly all major locations in the region. Singapore, Seoul and Yangon were among the exceptions, with Singapore having leapt up into the top five most expensive cities in the world, up from 13th position in 2022.”Contrary to last year, Chinese cities have dropped further down in the ranking due to the weaker Chinese yuan against other currencies and a lower rate of inflation compared to other countries.”

    Global top 20 (2022 ranking in brackets)

    1. New York (2)2. Hong Kong (1)3. Geneva (3)4. London (4)5. Singapore (13)6. Zurich (7)7. San Francisco (11)8. Tel Aviv (6)9. Seoul (10)10. Tokyo (5)11. Bern (16)12. Dubai (23)13. Shanghai (8)14. Guangzhou (9)15. Los Angeles (21)16. Shenzhen (12)17. Beijing (14)18. Copenhagen (18)19. Abu Dhabi (22)20. Chicago (25)

  • Airbnb Sues New York City

    Airbnb Sues New York City

    Article by Reuters – June 2023

    NEW YORK, June 1 (Reuters) – Airbnb Inc (ABNB.O) on Thursday filed a lawsuit against New York City over a new law it called a “de facto ban” against short-term rentals set to go into effect in July, which the company says will limit the number of people who can host rentals in the city.

    City councils around the United States are increasingly introducing ordinances to regulate short-term rentals. Some of them require hosts to obtain licenses and pay registration fees or limit short-term rentals in business districts.

    The company’s filing in the New York State Supreme Court says New York’s city council, through legislation passed in 2022, effectively implemented “its most extreme and oppressive regulatory scheme yet, which operates as a de facto ban against short-term rentals in New York.”

    Airbnb, in a letter to hosts, said “today’s filing comes only after exhausting all available paths for a sensible solution with the City.”

    The law, according to the filing, will make it more difficult for hosts to do business, requiring them to register with the New York City Mayor’s Office of Special Enforcement (OSE) and to certify that they will comply with “the maze of complex regulations” for zoning, multiple dwelling law and housing maintenance code as well as construction code.

    The short-term rental company is requesting that the court blocks the enforcement of “Local Law 18”.

    OSE application reviews will ensure “that only a miniscule number of hosts will ever be granted a registration,” Airbnb said in the filing.

    A New York City spokesperson said in a statement that the administration of Mayor Eric Adams “is committed to protecting safety and community livability for residents, preserving permanent housing stock, and ensuring our hospitality sector can continue to recover and thrive.”

  • Brexit moved to EU much lower than expected

    Brexit moved to EU much lower than expected

    Immediately after the vote in the summer of 2016, City firms said they would be moving 12,500 jobs to European hubs because of the expected loss of London-based organisations’ ability to operate in the EU.Some analysts even predicted up to 100,000 UK jobs could eventually be lost.

    Now, the latest EY ‘Financial Services Brexit Tracker’ shows that only just over 7,000 post have actually relocated or are in the process of doing so.

    Moving staff overseas decrease due to new agreements between UK and EU

    EY said that many firms had initially projected high numbers of staff moves to Europe amid fears of losing access to the single market. Now, however, many had revised down the number of relocations following agreements between the UK and EU on operating models.

    Omar Ali, Europe, Middle East, India and Africa financial services leader at EY, said: “In the months following the referendum, financial firms voiced their intentions to bolster EU subsidiaries, move staff abroad and relocate headquarters in preparation for all possible scenarios.

    “The high number of potential job relocations reported in 2016 aligned with the uncertainty which surrounded the City’s ongoing relationship with Europe at the time. 

    “As firms gained greater clarity on what the post-Brexit landscape would look like, plans were consolidated and, in some cases, firms revised down the number of people they would need to relocate.”

    Mr Ali said that cross-border access remained a priority for both UK and EU firms as they looked to create the most efficient, liquid markets offering end users the best choice and prices.

    But, he added: “Overall, Brexit-related decisions are increasingly becoming integrated into businesses’ broader operational considerations in line with their wider growth and transformation strategies.”

    The Brexit Tracker showed that the principal winners of Brexit-related moves from London had been Paris (2,800 jobs), Frankfurt (1,800) and Dublin (1,200).

    New hires on the rise in London

    Conversely, the number of new hires that have been publicly linked to Brexit since the referendum currently stands at 2,900 across the EU and 2,500 in the UK, with London recording the largest rise in the past three months.

    EY said the situation over the future movement of jobs remained fluid with further relocations possible as a result of current European Central Bank checks on whether new EU hubs opened by London-based banks had enough staff to justify their new licences.

    Mr Ali commented: “When it comes to cross-border access outside of the EU, the UK has signed a number of trade deals over recent years with key markets including Australia and Japan.

    “The data provisions in these agreements will help underpin an increase in cross-border financial services. More significant is the proposed financial services mutual recognition deal with Switzerland, which has the potential to become a gold standard template for other jurisdictions to replicate.

    “When it comes to the future of global financial services, I have no doubt that both the UK and EU will continue to be world-leading markets, driving innovation, progress and growth.”

    Article by Relocate Global: David Sapsted

    Article link: https://www.relocatemagazine.com/brexit-moved-to-eu-much-lower-than-expected-uk-economy-dsapsted-0322

  • NY & London stay atop financial rankings

    NY & London stay atop financial rankings

    Despite fears that London could lose its standing as a leading financial hub because of Brexit-related relocations to the EU, the City has retained its second place in the latest Global Financial Centres Index (GFCI).

    But first-placed New York has extended its lead over London in the index, compiled by the Z/Yen Group in partnership with the China Development Institute, while rivals in Asia are gaining ground.

    London stays in top 5 rankings

    Nevertheless, the City A.M. website pointed out: “The City beat the likes of Paris, Frankfurt and Amsterdam to Europe’s crown. Pessimists had warned that Brexit would reduce the attractiveness of the City to the world’s top finance firms.

    “London’s deep pool of highly skilled workers and a welcoming business regime were key factors in cementing its position as the bloc’s top dog. The capital’s booming FinTech scene continues to drive innovation and technological development in the global financial services industry.”

    The index, based on surveys and 150 factors, awarded New York 759 points – down three points from the GFCI six months ago – with London 14 points down at 726. But London has become the only European hub in the top 10 after Shenzhen replaced Paris in 10th spot.

    Apart from New York and London, the other centres in the top 10 are closely matched, with only eight rating points separating third and tenth places.

    Economy boost since pandemic hit

    Prof Michael Mainelli, executive chairman of Z/Yen, said: “The second half of 2021 saw a level of confidence in the world economy that we have not seen since the beginning of the Covid-19 pandemic.

    “However the pandemic remains an unpredictable variable, as does the effect of the Russian Federation’s invasion of Ukraine. We will be looking at the effects of these in future editions of the GFCI.”

    The report said the invasion of Ukraine would affect the future rankings of both Moscow and St Petersburg, which are likely to fall after coming in 50th and 110th, respectively, this time.

    Hong Kong remained in third place in the rankings but Singapore dropped two places, from fourth to sixth, after being overtaken by Shanghai and Los Angeles.

    Countries saw losses and stable performances throughout the last six months

    “Asia-Pacific centres generally recovered losses that they experienced (six months ago) in GFCI 30,” reported Z/Yen’s London headquarters.

    “This suggests that there is restored confidence in the economic strength of the region, and in trade performance. North American and Western European centres had generally stable performance.

    “The data on which GFCI 31 is based relate to the period up to the end of 2021. While we might have expected more volatility in the ratings as the world continues to recover from the Covid-19 pandemic, the broadly level ratings in the index suggest that in the last half of 2021, confidence was returning to the world economy.”
    In separate FinTech ratings in the index, New York and Shanghai retained first and second positions, but Beijing and San Francisco overtook London to take third and fourth places.

    GFCI top 10:
    1. New York
    2. London
    3. Hong Kong
    4. Shanghai
    5. Los Angeles
    6. Singapore
    7. San Francisco
    8. Beijing
    9. Tokyo
    10. Shenzhen

  • Are Serviced Apartments at the Forefront of Sustainable Tourism?

    Are Serviced Apartments at the Forefront of Sustainable Tourism?

    According to the World Tourism Organisation (UNWTO), sustainable tourism is:

    ‘tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities’. 

    Whilst the easiest way to travel with the environment in mind is to minimise travelling distance, we understand that this may not be an option for many corporate and long-stay travellers. Therefore, it is essential to minimise the environmental impact of your stay as much as possible. 

    Why is there such a demand for sustainable tourism?

    The demand for sustainable tourism reflects global trends to be more environmentally conscious. This is highlighted in a recent study by Simon-Kucher & Partners (2021), which found that 85% of respondents had altered their purchasing behaviour to be more sustainable, over the past five years. 

    These global trends have rippled across corporate travel as well. Recent discussions from the United Nations Climate Change Conference (COP26) have highlighted the existential threat of climate change. In effect, this has accelerated the demand for businesses to make more environmentally conscious decisions, something that the corporate travel sector cannot disregard. 

    So, what has this meant for the serviced apartment industry?

    Data from the Global Serviced Apartment Industry Report (GSAIR, 2022) indicates that sustainability, ESG, and safety have become top priorities for businesses and employees. This resulted in 15% of businesses increasing the use of serviced apartments in 2021. GSAIR also found that since 2010, 52% of corporates and 60% of TMCs state that their serviced apartment use has increased significantly. 

    How exactly are serviced apartments more sustainable, in comparison to other accommodation alternatives?

    1. Longer Stays

    Longer stays mean reduced travel. Further insights from GSAIR suggest that business trips will continue, but at a fewer rate and for a longer duration. The pandemic has fast-tracked a shift from face-to-face business to virtual video conferencing, which has drastically cut down the need for travel. This is illustrated by GSAIR’s findings that 39.2% of business trips in 2021 were eight nights or more, whilst the number of 7-14 night stays doubled from that of 2019. 

    By reducing the need for travel, and staying in a serviced apartment for the duration of your trip, your carbon footprint is significantly reduced. This lessens the contribution to global warming and pollution from burning jet fuel whilst travelling by aircraft. 

    2. Co-living

    Serviced apartments offer a home away from home, with all the necessary amenities you require for daily use. This is the same for co-loving apartments, however, you share your home away from home. This includes sharing the lounge, dining room, and any other communal space at the same time. This option encourages a sense of community and can be great for sociable travellers who often find themselves lonely on their business trips. 

    Co-living also makes group trips and work projects much easier. The hassle of organising accommodation for group trips and work projects is cut dramatically when co-living is considered. 

    3. Sharing Transportation

    As well as the benefits mentioned, co-living also encourages the sharing of transportation. Transportation choices that get you from A to B with the lowest carbon emissions should be favoured. Travelling in a group is undoubtedly better for the environment than travelling alone. Specifically, if you are travelling in a group large enough, buses are often the most preferred eco-friendly transportation option. Apart from cycling and sailing, of course. 

    4. Sustainable Housekeeping

    Here at TheSqua.re, and largely across the serviced apartment industry, cleaning and housekeeping services are carried out on a weekly schedule.

    This is great for guests who want to relax in their apartments, without any disturbances. Not only this, less frequent housekeeping can help to reduce the environmental impact of your stay! 

    Cutting down on unnecessary daily cleaning of towels and linen significantly reduces the number of times the washing machine is being used, which saves A LOT of electricity. 

    Weekly cleaning and housekeeping also reduce electricity use in the apartment, largely coming from vacuum cleaners. According to The Home Hacks DIY, Vacuum cleaners tend to use between 450 watts to 2500 watts, typically using 1.4kWh of energy per hour. 

    Did you know…?

    • During a 30-night stay, the CO2 footprint of a serviced apartment is 70% less than a name-brand hotel in Canary Wharf. 
    • Serviced apartments use 40% less water than the average hotel room per night. 

    For your next business trip, try integrating sustainability into your accommodation choice by considering a serviced apartment. 

    The Global Sustainability Study 2021 survey was conducted in July 2021 by Simon-Kucher & Partners, fielding through panel data provided by Dynata, an independent market research agency.