“ Serviced apartmentS bridge the gap between hotelS and the traditional rental market .”
Trending
here to stay
ApArtment hotel brAnds , offering communAl spAces And eco-friendly touches to business trAvelers , Are expAnding .
Contributed by Judith Crown
Apartment hotel operators are targeting the millennial mindset with brands that tout communal kitchens and shared workspaces – and they are gaining new ground paved by home-sharing services , which provide a more predictable and consistent experience that ’ s less expensive than a conventional business hotel .
“ Millennials have led the exploration of alternatives to hotels ,” says Barry Hickey , group development director at Dublinbased Staycity Aparthotels . “ They use their accommodation in different ways than traditional guests – wanting communal space for work and pleasure so they are not confined to their rooms .” Staycity , The Ascott Limited , Frasers Hospitality and others are designing properties with 24-hour reception , informal cafes and green toiletries .
The extended-stay hotel model is most developed in the U . S . In contrast , European operators leased apartments in city buildings — not always under the same roof — and didn ’ t develop consumer brands , says Diane Mayer , global brand manager for Marriott International ’ s extended-stay and serviced apartment properties . There are more than 6,500 extended-stay locations with nearly 500,000 units in the Americas and Canada , according to a recent report by London-based Apartment Service ’ s Global Serviced Apartments . That far outpaces Europe , with nearly 2,000 locations and more than 100,000 units , and Asia , with less than 1,000 locations and fewer than 100,000 units .
Bridging the gap European and Asian operators say the changing habits of business travelers — to be more “ local ,” with space for cooking , working and socializing — have energized the market . “ Companies are sending staff on project assignments for months rather than relocating them ,” says Gerald Yong , chief investment officer at Singapore-based Ascott . “ Serviced apartments bridge the gap between hotels and the traditional rental market .”
The number of serviced apartments worldwide grew 10.5 % to 826,759 in the 18 months through March 2016 , according to the GSAIR . Some analysts are worrying about a glut . Marriott , which doesn ’ t use the term “ extended-stay ” outside the U . S ., plans to add 250 Residence Inn properties to its stable of 750 by 2020-21 , doubling its reach to 20 countries , Mayer says . She dismisses
“ Serviced apartmentS bridge the gap between hotelS and the traditional rental market .”
— Gerald YonG
concerns of oversupply , pointing out that one-third of all business trips are part of an extended stay of at least five nights , while the supply of extended-stay properties is nowhere near one-third of all hotels .
Ascott , a unit of real estate giant CapitaLand and the largest operator outside North America , in July boosted its stake in Australia ’ s Quest Apartment Hotels to 80 % from 20 %, adding 180 properties with 11,000 units , and also acquired an 80 % stake in California-based Synergy Global Housing
10 hotelsmag . com October 2017