THE SERVICED APARTMENT MARKET
GSAIR 2024 34
CATEGORISING AND QUANTIFYING
THE SERVICED APARTMENT MARKET
By Mark Harris Contributing Editor
In 2024 , what is a serviced apartment ? How are blurred lines between alternative accommodation models impacting supply and demand , and why it ’ s important to size the market .
Credit : The Ascott Limited
Way back in the mists of time ( well , 2008 anyway ), the first edition of GSAIR defined a serviced apartment as
“ typically … in urban locations , range in standard from budget to deluxe and offer hotel services such as 24 hour reception desk …. they vary in style ; however most are fully furnished with en-suite bathrooms , a fitted kitchenette and lounge / dining area . Many are run by major players in the hotel market …”.
16 years later , the market has seen the emergence of aparthotel , co-living , short term rentals and homestay , the latter including the Airbnb model that has brought the extended stay market awareness at the expense – some would say – of reputation .
Earlier in 2024 , an independent review of the role and value of serviced apartments in the UK was commissioned by the Association of Serviced Apartment Providers . It offered an , admittedly more succinct , but ultimately little-different definition .
“ Often described as ‘ home away from home ,’ serviced apartments can be defined as self-contained accommodation units that offer an array of hotel-like services such as regular housekeeping and flexible lease terms .” 4
Plus ça change , as the French say . So what has the impact of other hotel alternatives been on the hospitality sector and its source markets ?
If you can ’ t beat ‘ em …
“ Things have changed a lot in the last 10 years ” says Guillaume Gerard , Head of European Corporate Sales at Adagio Aparthotel .
“ Recently we ’ ve seen booking . com listing private rentals on their website . Like when Airbnb came on the scene , this has had the positive impact of raising awareness of our products , and those of our competitors . The challenge is always how well these products meet the needs of the business traveller , and their employers – especially in safety , security , and regulatory compliance .”
However , Guillaume also admits that existing players have been quick to learn from the new kids on the block . Lobby areas are a good example . With more than a nod to co-living products , Adagio have created the Circle ; an environment in which to meet , but with shared kitchens , library books guests can borrow , and even some shops .
4 https :// theasap . org . uk / independent-review /