GSAIR 2023 : APAC 10
APAC in summary
Asia Pacific ’ s serviced accommodation landscape is flourishing . Despite taking longer than the rest of the world to bounce back from COVID-19 , and with China only opening its borders to international travellers earlier this year , the region has enjoyed a healthy recovery .
By Jacqueline Ang Supply Chain Director - APAC Synergy Global Housing
This recovery has been aided primarily by the increased movement of both the leisure and business traveller - or perhaps a blend of the two - as organisations discontinue work from home policies and travellers realise the benefits of choosing to stay in serviced accommodations over hotels .
Key players , such as Far East Hospitality , Frasers Hospitality , The Ascott Limited , Urban Rest , Minor Hotels and Onyx Hospitality group , have played a formidable role in shaping both the global and regional accommodation landscape , many of whom expect to substantially grow their stock across key traditional markets . Urban Rest and Minor Hotels for example , have shared their presence in the Australian market and are poised to expand significantly over the next few years , while Far East Hospitality have confirmed the opening of two additional properties in Singapore from 2024-2028 .
The digital nomad
As the concept of working from anywhere becomes a popular global phenomenon , the serviced accommodation industry will likely see an upturn in demand for larger apartment types as corporates adapt to meet the functional and wellbeing requirements of modern travellers .
Inflation
As the global price index continues to rise , budgets will be squeezed , and rental costs will likely increase - we anticipate such forces will create the perfect storm in the building of “ budget brands ” as key players adapt to remain competitive .
The Ascott Limited have also recently confirmed their operational expansion across non-traditional , markets such as Cambodia , India , Vietnam , The Philippines , and Malaysia . This growth comes as a consequence of multiple local dynamics impacting supply including but not limited to :
• The development of tourism infrastructure
• Growth in business travel and relocation
• Investment into alternative serviced accommodations , designed to meet the changing behaviours of travellers post-COVID
• Geo-political forces - for example , many organisations are choosing to move away from China to spread risk following China ’ s zero-COVID policy .
Additional market forces impacting supply include :
Photo credit : Somerset Pattaya .