The Global Serviced Apartments

The Global Serviced Apartments Industry Report 2008/09 a TIN report Contents 2 - 5 About The Apartment Service 6 - 9 What is a Serviced Apartment? 10 - 23 Industry Overview 24 - 37 Industry Benchmark 38 - 41 Rates Analysis 42 - 47 Chain of Fools 48 - 50 Duty of Care 51 - 53 Tomorrow’s World 54 - 55 Global Apartment Listings 56 - 60 Ask the Expert 61 - 62 Appendices 51 Tomorrow’s World What next for the serviced apartment? By Catherine Chetwynd Design, technology and service will be the three major features in the serviced apartment of the future, according to the pundits of the industry. “There is going to be a raising of the bar in design and comfort, it will be the end of corporate bland,” says Tracey Stephenson, whose company Staying Cool commissioned furniture for its Birmingham premises and used a mixture of commissioned, retro and refurbished in its Manchester apartments. And technology will range from entertainment systems to the ability to control lighting and heating remotely. This will also have a green agenda. “Link the Edge provides a brain which controls all electricity remotely and guests will be able to ring a given number and type in a password, which allows them to alter heating and lighting. It is already possible but we have not explored all the implications,” she says. This is one step on from the key cards in hotels that allow guests to turn lights and heating on and off as they enter and leave a room. General Manager of Hyde Park Gate (Cheval Group) Malcolm Broadbent agrees that control of energy use is a serious consideration. “It is getting increasingly expensive and we will need to look at our carbon footprint,” he says. “Insulation to prevent heat loss and gain, depending on the time of year, will become more sophisticated, where outside sensors make systems compensate for what is going on outside before anyone has to turn a dial; and more sophisticated than that, respond to when and how people use the building.” And consultant to the industry Elaine Quiroz says the industry is starting to see more RFPs that ask about operators’ green policies and programmes for the environment. “This can range from whether we use properties that have conservation-friendly designations to simpler measures such as the cleaning products used. One corporate housing provider is making this a hallmark of all its apartments and programmes. We expect to see more focus on that in the future as well,” she says. Malcolm Broadbent also sees demand for cutting edge entertainment. “TVs are no longer just a TV and in houses worth £2 million upwards, people are installing personal cinemas and concentrating on getting the quality right,” he says. “In offering a product to replace the home of an individual when away on business for a period of time, the serviced apartment industry has to reflect this requirement.“ The industry is starting to see more RFPs that ask about operators’ green policies and programmes for the environment Whilst every effort has been made to ensure accuracy, The Apartment Service, Travel Intelligence Network nor Creativo can be held responsible for any errors or omissions. 52 The Apartment Service Tomorrow’s World “In our own apartments, we are converting the sitting room with TV into entertainment centre with large flat-screen TV, higher quality amplifier with cinema surround sound and wider scope to get connected to TV channels around the world. Our buildings appeal to multi-national players and it is not adequate to say we have got Sky, they want to be able to watch speedboat racing in the Gulf, for example.” However, at the moment, it is difficult to find affordable packages and splitting the costbetweenflatsinablockisnotpossible. Ergonomic design and added value will mark out tomorrow’s apartment, according to regional general manager for UK Ascott International Rebecca Hollants van Loocke. “There may be many more services built into the price,” she says. The bridge between hotels and corporate housing is provided by extended stay properties, a sector that is well established in the US but less so in Europe and the MiddleEast.MarriottExecutiveApartments (MEA) has 16 outside the US and the first Staybridge Suites (IHG) opened in Liverpool in June, followed closely by their Cairo property. Vice president Staybridge Suites EMEA, IHG, John Wagner, also sees the emphasis moving towards more services. “It was very much part of our research as we talked to customers that were in serviced apartments or extended stay lodging,” he says. “They are willing to pay for more services and not willing to give up the physical features. That drove our product towards Staybridge Suites rather than condominiums and to come up a bit from where we were on price. “We have deliberately tried to move towards the hotel end of the spectrum with facilities. People may take a lease on a building or flat if they know they are going to be there for six to nine months but our customers don’t want to risk the deposit that is usually necessary for that,” says Wagner. Extended stay properties are already the norm in Asia. “Long-stay accommodation is more along the extended stay model than corporate housing, especially in South East Asia,” says CEO for Europe and the Middle East for Frasers Serviced Apartments UK, Guus Bakker. “They are purpose-built, fully serviced apartments.” American operator Oakwood is also well represented in the Far East and senior vice president and general manager for Oakwood Worldwide, Gavan James feels the US is the barometer for what happens elsewhere in the industry. “We believe there will be several market strata,” he says 53 Oakwood already has Premium, a high end brand; and Residence for the mid market. “We are seeing demand for a 3-star product – still with 24-hour front desk, on site staff and weekly housekeeping – but with the prices associated with that as more mid-line people are moved around the world.” James also anticipates demand will grow exponentially in Asia Pacific,EasternEuropeandtheMiddleEast. In the Middle East, another model is developing. “There are a lot of purpose-built serviced apartments coming on line, where you get a corporate housing kind of operation with limited service,” says Bakker. “Traditionally, serviced apartments have been built adjacent to hotels and the two are integrated, so that hotel services are available.” Marriott has followed this strategy worldwide with MEA. Forthcoming developments that fit this model include St Regis Cairo and St Regis Abu Dhabi, both to open with serviced apartments; Le Méridien Doha, 250 rooms and 110 apartments; InterContinental Hotels and apartments in Tripoli and Doha; Crowne Plaza hotel and apartments in Abu Dhabi. As the industry grows with demand, competition will increase and operators of serviced apartments will work harder to ensure that while quality remains high, innovation and service at different levels will mark the difference between the players. This can only benefit customers. Traditionally, serviced apartments have been built adjacent to hotels and the two are integrated,so that hotel services are available ... - tailieumienphi.vn