Hotel Owner November 2018 | Page 21

FEATURE Glasgow penthouse the aparthotel sector as people have a route to market and OTA equivalent, is growing and the ability to satisfy the “experienced and enjoyed” staying in because “they are so well recognised demand in certain areas of the country is an apartment as opposed to a hotel, globally the inexperienced traveller is going to be quite tricky. You would have and as such have looked to “safer and seeing Airbnb brand as the product and seen the occupancy rates are very high more professionally run alternatives” - or that concerns us as you can imagine.” and of course the higher the occupancy aparthotels. “With your typical Airbnb in “It is not the Airbnb product they are rate the more risky the business challenge London you can’t rent it for more than three selling - it could be anyone’s. They have as you are going to disappoint customers if months legally, they are not professionally no legitimisation for health and safety there is something taken offline. I think the managed, you are staying in somebody’s responsibilities at all. Accessibility to the availability of stock is going to be a problem home, and for some people that is internet and technology has allowed people if the industry continues to grow at the rate appealing.” He adds: “There will always be to find alternative ways of staying - that is that it is.” a market for that but for some other people really the boom of the sharing economy, and they want to know they are in a place that is we must claim part responsibility of that as to a “supply of opportunities, nailing the professionally managed and fully compliant, the serviced apartment industry.” deals to open more buildings around the Nixon agrees and believes it is down UK”, but he feels as Native’s brand becomes and that is where we come in.” PROBLEMS FACING THE SECTOR better known more and more institutions will part of Airbnb has played but is “cautious” According to ASAP and STR occupancy become “comfortable working with us”. that people see it as a product rather rate in the sector totalled 81% in 2017, as than a home-sharing service. “I think that such one of the main problems facing the to is a shortage of a skilled workforce, similar Airbnb has been a very major-visibility issue of the serviced apartment sector is to that currently facing hotels. Even though medium, if you want to call it that, for whether supply can meet demand. Foice serviced apartments often do not have the apartment-style living and we recognise believes the struggle will be finding the staff required to run a restaurant and room that.” He argues Airbnb has “certainly space for new builds. service with high guest interaction levels, Foice on the other hand accepts the raised the profile” but believes it is only November 2018 Foice explains: “I would say the demand The second problem that Foice alludes they still require staff such as housekeepers www.hotelowner.co.uk 21