SERVICED APARTMENTS BY CATHERINE CHETWYND
A RECENT KEY INDUSTRY REPORT paints a vivid picture of global growth in the serviced apartment sector. The total number of extended stay apartment units stands at 748,437 in 9,875 loca- tions, showing an increase of 14 per cent over the previous 18 months, accord- ing to the Global Serviced Apartments Industry Report 2015/16 (GSAIR). The US still accounts for 59.6 per cent of the world’s extended stay (excluding corporate housing) units and 61.2 per cent of all locations. North America has also seen the highest increase in supply year-on-year from 418,950 units in 5,702 locations to 446,059 units in 6,046 locations, the report states. In some cases, this growth is fuelled by partnerships between providers or with developers. Oakwood Worldwide has signed an agreement with Asia-focused Mapletree Group, which will add around 100 serviced apartment properties world- wide. The Ascott’s alliance with property developers such as Quest Serviced Apart- ments in Australia, and Beijing Vanke and Yuexiu in China, will contribute to its target of 80,000 units globally by 2020. Quest has also joined The Apartment
Service’s TAS Alliance. “This will give us access to an even wider network of international guests, significantly increas- ing our client base,” says Quest general manager (brand) Tony Gauci. “The part- nership will also support the needs of our Australasian-based corporate clients within EMEA [Europe, the Middle East and Africa] markets.”
GOING FOR GROWTH Starwood Capital bought four serviced apartment blocks, previously operated by Think Apartments, for £206 million; and Oaktree Capital is investing £300 million in the roll-out of a new brand from CL Serviced Apartments (see p100). Investment is not the only route to global domination, though. As The Apartment Service fills gaps in the com- pany’s portfolio through TAS Alliance,
BUYINGBUSINESSTRAVEL.COM
Growth is fuelled by partnerships between providers or with developers
Bridgestreet has made an affiliate agree- ment with Dutch company Short Stay Group. “Distribution is key and Short Stay Group is an excellent example of that: it is in the Netherlands, Spain, Paris and Rome, and attaching itself to our global brand is good for its business,” says Bridgestreet CEO Sean Worker. “We have had realistic interest from a number of in- ternational operators and are in talks with them. More will follow. We have added to our development team and, significantly, to our sales team to answer that pent-up demand. It’s about how many markets we are in and that is a real attraction for our client base.”
Citybase has launched Orbital Partner- ship (OP) and has asked the Association of Serviced Apartment Providers (ASAP) to accredit any providers that join the platform, one of which is Cotels Ser- viced Apartments. “We normally ask Cotels to find ac- commodation and length of stay varies from one week to six,” says Jenny O’Connor, project coordinator for CCTV installation company Thompson AVC, whose employees employees travel na- tionwide. “They can find places we cannot and our guys like the service levels and standard of accommodation they put us into. Since they joined Orbital Partnership, they have been able to offer us a wider range of options.” Cotels operates in three locations and
was turning away business until it joined OP. “Now we can answer to customers’
requirements nationally and globally,” says Cotels’ customer relationship manager Sonya Hawkins. Skyline Worldwide opened London
developments recently in Canary Wharf, Farringdon Road, Fetter Lane and Green- wich, with a property near Liverpool Street station coming on line this March. “And we are developing a management side to the business to look at where clients want us to go in EMEA, with a supply chain team focusing on that,” says Skyline managing director Thiago Hahn. Flying Butler is adding more than 600 units in the next five years, following the opening of five locations in central and west London. Staycity has 1,300 units under construction. “Our average length of stay is three to four nights, and we see hotels as our main competitors,” says Staycity CEO Tom Walsh. “Our customers say they would rather be in serviced apart- ments. JP Morgan, for example, has taken 20 apartments for two to three months and is renewing.”
Planning to double its portfolio over the next five years is Marlin, which is cur- rently building a 218-room aparthotel on London’s Westminster Bridge Road. It is also looking overseas, with its first property confirmed. And Intercontinental Hotels Group (IHG) has opened a Staybridge Suites unit in Vauxhall. Also in the capital, City Apartments has launched Philpot House, with 36 high- spec apartments, while Supercity recently acquired properties in Chancery Lane and Watford. “We have applied for planning permission to transform the Chancery Lane site into approximately 50 luxury suites,” says Supercity’s managing director, Alexis Burton. Cheval Residences’ portfolio grew from 286 to 506 apartments last year. “Fur- thermore,” says Cheval director George Westwell, “we now have the systems in place to operate third-party assets and see that as a move going forward.” SACO’s new 80-unit property in Lon- don’s Cannon Street is in a former office
BBT MARCH/APRIL 2015 97
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128