Serviced apartments
be published by The Apartment Service in June – suggest that serviced apartment operators have similar concerns to Redman. The Apartment Service’s managing director, Charlie McCrow, says: “The sector needs to uniformly agree and provide more clarity about of the types of properties offered, services provided and the sector variants – that is, extended-stay hotels versus serviced apartments versus private properties – and to create greater awareness of these.” McCrow explains that the report frequently cites the need for more internal governance by operators and their associations, as well as clearer external legislation by local authorities on planning permission. “Having more defined operational service models would, in my opinion, encourage the sector to flourish and at the same time provide better regulation and safety to guests who, for example, will know what to expect,” he says.
RUSSIA, INDIA AND CHINA For companies looking at increased travel to emerging markets, the apartment sector is ripe in certain areas (see ‘Focus on Brazil’, p88). Ascott was an early major player in China and other operators are following suit, but it will be a while before the sector has the availability buyers will soon demand. Silverdoor’s Hegan says: “China is ideal for serviced apartments because people who travel there stay for long periods.” In India, growth is also on the increase but Hegan points out that infrastructure may be an issue there. For example, one of the much cited benefits of staying in a serviced apartment is saving on hotel restaurant bills and meals out, but in India shopping for fresh food and getting around cities may be difficult and time-consuming, negating any savings, and frustrating the traveller. Hegan explains: “Although it is a key business market, India is a
IN BRIEF
■ Skyline Worldwide opened its Kensington Apartments, close to Earl’s Court, at the end of last year. This is Skyline’s first directly operated block and the company is looking to expand further in west London, as well as in the City and Canary Wharf.
■ SACO added 8,000 properties to its portfolio last year, and 2013 will see it focusing on expanding its US stock, specifically in Boston, LA and New York. Elsewhere it aims to grow its number of apartments in the UAE, China and Brazil.
clear case of its infrastructure not keeping up with the modernity of its buildings. But it is a growing market, and I looked at five different cities on my last trip.”
The issue of standards is still a
sore point for the sector and, with no universally accepted star rating system in the UK and globally, buyers have to trust in brands and relationships with suppliers. SACO’s Redman says different standards can make it confusing for the buyer and the traveller: “Serviced apartment models and standards vary hugely in the UK, and globally that problem is exacerbated – what one country calls a studio apartment is a serviced apartment in another.” Although China and India have seen a huge investment from the sector, Russia seems to be a tougher nut to crack, but there is interest from operators looking to develop in the country. Go Native’s Nixon travelled to Moscow in February to look at different types of properties. He says: “Russia is a very similar market to London, in terms of profile of demand, with one- to six-month lengths of stay.” Ascott’s Hollants van Loocke adds:
“We have a property in Georgia and are working with owners with properties in Russia, and it is definitely on the agenda – but we feel it is better to enter with partners who have a full understanding.”
BOOKING ISSUES Empire Square, Marlin Apartments
While the sector is busy expanding its reach across the globe, what about an expansion in booking solutions? There are many ways to book serviced apartments: by email, phone, online, through a third-party provider and, increasingly, on the global distribution system (GDS) – but buyers often tend to want all content to be booked through the GDS. The reasons for this are that it keeps their data in one place, it ticks the boxes for the security and whereabouts of travellers, and it’s easier and quicker than making a call. Profitflo’s Carolyn Davies says:
90 Jaguar Suite, Taj Suites and Residences, 51 Buckingham Gate
“It would be great if serviced apartments were on the GDS, so we could see how much an apartment was for four nights and select it if it was cheaper than a hotel. But because we encourage our travellers to use the online booking tool, and serviced apartments are not on there, our travellers don’t use apartments.”
MARCH/APRIL 2013
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