The UK hospitality sector has continued to demonstrate resilience in recent years, with growing investor confidence reflecting the strength of the market and its long-term potential.
According to Savills, UK hotel investment volumes reached approximately £5.0 billion in 2025, more than doubling the previous year’s total and representing the strongest level of investment since 2018. The report highlights increasing interest from both UK and international investors, supported by resilient trading performance and continued demand for high-quality accommodation.
This level of activity reflects more than short-term market confidence. It demonstrates how professionally managed hospitality assets, including aparthotels, are becoming an increasingly recognised part of a diversified property investment portfolio, particularly in regional locations benefiting from economic growth, regeneration and year-round visitor demand.
Why More Investors Are Looking Beyond Buy-to-Let
Residential property continues to play an important role within many investment portfolios. However, changing regulations and increasing landlord obligations are encouraging many investors to consider alternative property sectors.
The Renters’ Rights Act has introduced significant reforms to the private rented sector, including changes to tenancy arrangements and increased responsibilities for landlords. While these reforms are designed to strengthen tenant protections, they have also prompted many investors to reassess the long-term appeal of traditional buy-to-let ownership.
As a result, increasing numbers of investors are exploring opportunities within the short-term accommodation sector. Professionally managed aparthotel investments offer an alternative route into property ownership, operating within the hospitality sector rather than the traditional private rented market.
Investors own an individual aparthotel suite while an experienced hospitality operator manages every aspect of the property’s day-to-day operation. This includes guest bookings, dynamic pricing, housekeeping, staffing, maintenance and marketing, allowing investors to benefit from the potential of the short-term accommodation market without personally managing guests or running a short-term let.
For investors seeking exposure to the growing short-stay market through a completely hands-off investment structure, professionally managed aparthotels are becoming an increasingly attractive alternative.
A Sector Supported by Diverse Demand
One of the strengths of the UK aparthotel sector is the variety of demand that supports occupancy throughout the year.
Aparthotels appeal to a broad range of guests, including business travellers, contractors, relocation clients, conference delegates, leisure visitors and families seeking the additional space and flexibility that serviced accommodation provides.
This diverse customer base helps support occupancy across different seasons and market conditions, particularly in well-connected locations with strong commercial activity and tourism demand.
Savills’ UK Hotel Market 2025 report highlights continued resilience across the hospitality sector, with positive trading fundamentals, sustained demand and investor confidence supported by the ongoing strength of the UK accommodation market.
What Investors Should Look For
As with any property investment, every opportunity should be assessed on its individual merits. However, experienced investors often look for several key factors when evaluating aparthotel developments.
Location remains one of the most important considerations. Properties situated close to major transport links, employment hubs, visitor attractions and commercial centres are typically well positioned to benefit from consistent year-round demand.
For example, our Off-Market Newquay aparthotel opportunity is located in the heart of Newquay town centre, just a five-minute walk from the beach. Combining a prime coastal location with strong tourism demand throughout much of the year, it has already proven highly popular with investors looking to access one of Cornwall’s best-known visitor destinations.
Meanwhile, our Off-Market Rochdale development is positioned within Greater Manchester, a region benefiting from significant regeneration, inward investment and sustained economic growth. Excellent transport connections and a growing business community continue to support demand for high-quality serviced accommodation from both business and leisure travellers.
Our Torquay opportunity is located in central Torquay, moments from the harbour, marina and seafront, it sits within the English Riviera, one of the UK’s longest established resort destinations, where Torbay recorded £429 million in tourism spend in 2024. Unlike most opportunities of this type, the building is already refurbished, operational and welcoming guests, so there is no construction period to wait through.
The quality of the operator is equally important. Professional management plays a significant role in maximising occupancy, maintaining standards and delivering an excellent guest experience, while allowing investors to enjoy a completely hands-off ownership experience.
Regeneration is another key consideration. Areas benefiting from continued public and private investment often see improvements to infrastructure, employment opportunities and visitor numbers, helping to strengthen long-term demand for professionally managed accommodation.
Considering Aparthotel Investment as Part of a Broader Portfolio
For those looking to diversify beyond traditional residential property, professionally managed aparthotel investments can provide an alternative route into the property market.
Whether located in a thriving seaside destination such as Newquay or a fast-growing regional centre like Greater Manchester, professionally managed aparthotels allow investors to benefit from the growing short-term accommodation sector without the ongoing responsibilities of operating a holiday let or managing tenants themselves.
Explore Our Off-Market Aparthotel Opportunities
We currently have three professionally managed aparthotel investment opportunities available:
- Off-Market Coastal Investment – Newquay – A centrally located aparthotel in the heart of Newquay, just a five-minute walk from the beach, benefiting from one of the UK’s most established leisure and tourism markets.
- Off-Market Investment – Greater Manchester – A professionally managed aparthotel investment in Greater Manchester, positioned to benefit from the region’s continuing regeneration, business growth and increasing visitor demand.
- Torquay Seafront Holiday-Let Investment – A completed and operational collection of individually owned studios in central Torquay, moments from the harbour and seafront, on the English Riviera. Fully refurbished, professionally managed and available from £69,950.
Click through to either opportunity to explore them further. If you would like assistance, our team will be happy to answer your questions and help you decide whether either opportunity aligns with your investment objectives.
