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Monthly Update

APRIL 2019

From the CEO...

We are now firmly into Q2 of 2019 and Brexit continues to steal the headlines. Labour's governing body will meet this week to discuss whether to call for a second public vote on Brexit as part of its European election manifesto. The National Executive Committee is split between holding a referendum on any deal, holding one with caveats, or rejecting the idea altogether. Never have I seen such misperception of what is really needed. The party continues to explore options publicly and is also holding further talks with ministers to try to break Parliament's Brexit deadlock. The EU has set a new deadline of 31 October for the UK's departure; however, Theresa May has said the UK could leave earlier - and avoid European elections - if MPs can agree on a deal before 23 May. We shall see what happens later in May.

The service apartment and aparthotel sector continue to have new supply come to market regardless of Brexit. The MRP Group has undoubtedly had a hectic month. Four individual buildings signed of Heads of Terms into exclusivities and the lawyers agreed on contracts. That’s a total of over 589 apartments that have been agreed! Two of those are Master leases of 25 years on an FRI (Fully Repairing & Insuring) basis, and two are on management agreements, one with a leading global brand. With these four separate opportunities, the MRP Group has now delivered over 50 offers to lease and/or manage buildings to the sector (over 20 of these were leases). This is a significant achievement that clearly demonstrates the strength and continued growth within the industry, despite the uncertainty we face. 

We have many more opportunities coming live to the market this quarter and expect to announce some of the above transactions shortly. In the meantime should there be any questions that you have surrounding the sector, then please feel free to contact me.
 

2019 Key Points

Personalisation improves revenue and customer service

Listening to the customer, being flexible, improving rate, and perhaps offering less can all lead to maximising revenue for serviced apartments and aparthotels.
Read More>

 

Project Spotlight

Project Echo
Located in Liverpool, features 34 studios, 1- and 2-bed apartments. The search for an operator will commence shortly, please contact us to join the pre-bid list. Located in Liverpool, features 34 studios, 1- and 2-bed apartments. The search for an operator will commence shortly; please contact us to join the pre-bid list.
Learn More> 
Project Pinnacle
The review of round one bids is currently underway, and round two is about to start. Successful bidders will be contacted by the MRP team with more details about round two.
Learn More>

Noteworthy News

Marriott to launch home-rental platform
The world's largest hotel chain is positioning itself as a direct rival to Airbnb. The initiative follows a six-month pilot program conducted in London, which was extended to Paris, Rome, and Lisbon in October. Details of the platform could be revealed as early as next month. Marriott has been cautious about entering the home-rental business over concerns about its legality. "We have now figured out that we can run this business in a way that does fully comply with the law," stated Arne Sorenson, Marriott CEO.
http://bit.ly/4Marri-ott
A review of the serviced apartment industry
Buying Business Travel, the UK’s leading publication for travel buyers and arrangers provides an in-depth overview of the industry’s latest trends. The evolution of serviced apartments continues with major serviced apartment operators diversifying their portfolios and expanding online booking capabilities. New product offerings are coming to market that supports the changing demographics and lifestyles of the modern workforce and much more. Indeed an exciting time to be a part of this industry.  http://bit.ly/4bbtravel
Airbnb leads $160M funding for short-term rental brand
Airbnb is taking further steps to become a supplier in its thriving marketplace. Lyric, a San Francisco-based company, manages apartment blocks and rents out those units on platforms that include Airbnb, HomeAway, Booking.com, and others. Lyric is similar to a serviced apartment operator but is licensed to run as a hotel, thus avoiding regulatory challenges.
http://bit.ly/4air-lyric
House of Fisher takes control of former
JV with ESA

House of Fisher has taken full ownership of the joint-venture company previously operated in association with ESA, following the latter's recent administration. This acquisition includes a specialist corporate housing solution which supports a major global technology company in the Thames Valley and control of dedicated aparthotel buildings in Newbury and Maidenhead.
http://bit.ly/4HoFesa
Copyright © 2019 The MRP Group, All rights reserved.


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