NEWS & UPDATES

Learn about what is happening in the industry

What are serviced apartments?

Serviced apartments are a relatively recent phenomenon in the country. They are fully furnished apartments that are equipped with kitchens and laundry facilities and can be booked for either one or two nights or for longer periods, say, when an employee relocates to a City for a work and requires an independent living experience. Some of the benefits of staying in a serviced apartment when compared to a hotel are that they offer more space, more privacy, and are more economical in terms of there being few hidden costs, and the presence of full kitchens in each apartment reduces meal expenses. Serviced apartments are generally around 15% cheaper than hotel rooms of similar size, adding to their appeal to businesses and savvy holidaymakers alike.

We refer to ‘serviced apartments’ as a catch-all term for purpose built apart-hotels and residential buildings re-purposed for short-term lets.

Why is everyone talking about them?

This alternative type of accommodation is becoming increasingly popular among corporate and leisure travelers worldwide, as it bridges the gap between the AirBnB, hotel and residential markets.

Can you differentiate between Serviced Apartments and AirBnb?     

To begin with AirBnb is an online travel agency not a type of property! Governments and local council have been cracking down on Airbnb rentals, which in part allows for success in the professional serviced apartment market.

Serviced apartments differ in that they are not flats owned by individuals looking to achieve a supplementary income, but rather they are owned by a company with the sole purpose of renting them out on either a short-term or long-term basis to individuals who need somewhere to stay.

Unlike Airbnb, the apartments are not someone else’s permanent residence. The crackdown of Airbnb rentals in some locations is allowing serviced apartments the opportunity to accommodate those who would have used Airbnb, further boosting demand for the units. The evidence of their popularity lies in occupancy rates.

How did serviced apartments originate?

Serviced apartments sector came into focus as a response to a surge in demand from corporate travelers, who frequently found long-term hotel stays uncomfortable and impersonal.

Serviced apartments are progressing at a stronger pace than any other type of accommodation in the hospitality sector for business travel. Typically, serviced apartments are very ergonomic, offering more space and equipment to work as comfortably as you would in the office.

Business travelers are often away for longer periods and serviced apartments are renowned for being a home away from home. Rooms are usually 30% bigger than hotels and offer additional home comforts such as sofas, dining tables and even coffee machines.

They offer a more cost-effective solution for business owners, offering tailored packages for long-term stays, which allows businesses to save money elsewhere. For example, serviced apartments come with fully fitted kitchens and living spaces that encourages travelers to stay in, saving on additional expenses, such as dining and transport.

The “bleisure” trend

“Bleisure” in an increasingly popular travel trend that’s particularly common among millennials, who endeavour to find a better work-life balance. More people than ever before work flexibly or remotely and “bleisure” allows employees to travel for work, while incorporating leisure activities into their stay. This might be making time for sightseeing, adding additional night stays to your trip or even bringing along loved ones to make the most of your stay.

The rise in serviced apartments can somewhat be attributed to the growth of this trend. Millennials make up the largest share of those seeking a “bleisure” balance, globally accounting for 38% of these trips, with Generation X and Baby Boomers responsible for 31% each.

Seeking a healthy work-life balance is very important.

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