10 Things To Do To Set Up an Aparthotel Business

Aparthotels, as a UK property investment model, is nothing new.

But the concept is relatively new in the UK compared to other parts of the world according to Saxbury, Specialist advisors to the serviced apartment and aparthotel market.

In Episode 99 of Expat Property Story, my UK property podcast for expats investing in the UK, I interviewed Carly Houston, who has created two aprthotels with her business partner in Brighton.

Aparthotels is a great business model for lots of reasons, but is probably more challenging for expats investing in UK property, so if you’re an expat investor and you’re considering this model then read on!

Based on my conversation with Carly, here are the top ten things you need to do to start an aparthotel business in the UK:

1. What’s your passion? Decide whether your primary interest lies in serving a particular guest type or in a specific location. This will help shape your UK property business model and target market.

2. Conduct market research: Gather information about your chosen UK investment area: the local market, including attractions, employers, pricing, and occupancy levels. Make use of various resources, such as websites, tourism office boards and speaking to people in your chosen area.

3. Consider unit sizes: Find the right balance between accommodation sizes to cater to both couples, single travelers, and larger groups. This allows for versatility in accommodating different guest configurations.

4. Focus on clever design: Make the most of limited space by offering functional storage solutions. Prioritize kitchenette facilities over large wardrobes in smaller rooms, as guests value being able to prepare their own food rather than eating out. For longer stays, guests are looking for a home away from home. 

5. Plan thoroughly: Avoid mistakes by thinking about fire safety measures from the beginning. This is especially crucial when working with listed buildings that require planning permission for alterations, although I would personally avoid taking on listed building projects!

6. Explore commercial agents, Google searches, and business websites as sources for commercial property listings. Also, if possible, walk the streets, seek recommendations, and contact sourcing companies for off-market opportunities. Try and talk to the owners!

7. Assess your financing options: Evaluate bank financing and private investor money as potential avenues for funding. Negotiate with sellers and speak to specialist expat mortgage brokers to discuss lenders' requirements.

8. Account for refurb timelines: Plan renovation work based on your building's needs and think about implementing phased approaches. Coordinate the timing of renovations with lending arrangements and financial viability.

9. Build a systemized business: Once established, systemize and streamline operations to adapt well to different times and situations like COVID. This includes planned maintenance, updating aesthetics, and considering environmental sustainability.

10. Seek guidance and education: Learn as much as you can from industry experts, UK property podcasts like this to avoid common pitfalls.