SERVICED APARTMENTS


to $1.7 trillion by 2022 according to the Global Business Travel Association (GBTA). But the serviced apartment market is getting more crowded


and well-known brands are consolidating and changing hands and leadership teams. As was expected, the hotel chains are getting better established in the European market, with multiple apart-hotel brands on offer and luxury residences and suites for the top end of the market. As the report points out, the highly sophisticated booking and


enquiry technology behind the big global operators such as Oakwood and BridgeStreet, Frasers and The Ascott Limited are making it increasingly difficult for the smaller operators to compete. This is compounded by developers and property-focused entrants to the serviced apartment market often offering no more than a weekly clean and pin-code entry to the apartment. However, the report sees huge opportunities for hospitality-focused


providers who can optimise the guest experience. The emphasis is particularly on ‘Generation Globetrotter’ and the Gen Y business traveller market. However, from the employer market perspective, with more senior executives and families reluctant to go on assignment, the emphasis on tailored employee experience and bespoke relocation support to ensure talent is retained points to the importance of serviced apartment providers being able to enhance the guest experience at all levels – particularly in the relocation and assignment context.


A GROWING NEED FOR SERVICED APARTMENTS In Europe, there has been a reluctance by the financial sector to commit to new Brexit locations in any numbers.. However, this summer the European Bank laid it on the line stating, “we are looking for senior leaders and decision-makers to be represented…” Destinations the banks have selected include Amsterdam, Brussels, Dublin, Frankfurt, Madrid, Milan, Luxembourg, and Paris. Indications are that any group moves will be smaller than originally predicted, but there will inevitably be a trickle effect with more financial services following. Other sectors, from pharmaceuticals to the car industry and professional services and research, are making plans and will be potential users of short-term accommodation. Challenges to the sector are the volume of apartments available in


the pipeline, locations and an understanding of what it takes to support a smooth transition to a new city for employees on assignment or the first phase of their relocation move, who expect seamless delivery and the personal touch. The serviced apartment providers who can get the guest experience pitch-perfect for these discerning professionals – in volume and possibly with partners and family accompanying – will reap rewards for their innovative approach and understanding of aligning the guest experience with the employee experience. To date, there not been much evidence that the European serviced apartment market is responding quickly enough to satisfy demand, as it catches up with the expertise of the more mature markets of the US, Asia and the UK.


UPDATE FROM ASAP James Foice, ASAP CEO outlined the latest Savills/ASAP Sentiment Survey, “Our members are showing ‘significant’ optimism for the coming 12 months, especially since a minor dip in demand from the leisure guest is countered at the moment by growth in the corporate market. Business travel now accounts for more than two-thirds of all stays – which are, themselves, getting longer all the time. “Many of our members are already reacting to this, stepping up their expansion plans worldwide. They say they expect demand will


NEW OPENINGS The latest new openings in serviced apartments around the world QUEST, LIVERPOOL CITY CENTRE


This autumn, Quest Liverpool City Centre opens, capitalising on the Northern Powerhouse project, which will further stimulate business travel and support the thriving leisure market. Liverpool is a centre for pharmaceuticals, health and biomedicine, as well as insurance and finance. Quest is the largest and fastest-growing apartment hotel operator in Australasia, with more than 165 properties located across Australia, New Zealand and Fiji. Paul Constantinou, founder and executive chairman of Quest


Apartments Hotels, said, “Our strong franchise model is also one of Ascott’s key drivers of growth. Bringing the Quest franchise to Liverpool is the first step of our international expansion plans.”


NATIVE, MANCHESTER CITY CENTRE


Also opening in the autumn is a new aparthotel from Native in Ducie Street, Central Manchester, close to Manchester Piccadilly station and the city’s historic Northern Quarter. This is Native’s biggest development to date, with 166 apartments including eight luxury penthouses with private outdoor terraces. The design by David Archer incorporates elements of the


original cotton mill, including wide columns, wrought-iron girders and brick-barrelled ceilings. The apartments offer a taste of industrial chic and are in keeping with Manchester’s lively and confident business, conference, cultural and leisure market mix.


CITADINES, ISLINGTON LONDON


The Ascott Limited’s fast-growing Citadines brand operates 37 properties in Europe, with four more currently under construction. The latest addition is Citadines Islington London, which has easy access from across London and is close to the world-famous Sadler’s Wells Theatre and the beautiful Regent’s Canal. Housed in a former Royal Mail Sorting Office, which dates back to 1907, the aparthotel features four stylish contemporary apartments, each designed to appeal to the modern business traveller, while drawing on the property’s and Islington’s colourful heritage.


OAKWOOD, ASIA PACIFIC


One of the longest-established serviced apartment brands for the employer market, Oakwood is expanding into the Asia Pacific market with two new upcoming launches. Oakwood Suites Bangkok in Thailand is scheduled to open by the end of 2019, located within the popular Phrom Phong district. While after 12 successful properties in Japan, Oakwood Suites Yokohama marks the brand’s expansion into Japan’s second- largest city opening mid-2020, ahead of the 2020 Tokyo Summer Olympics. “By expanding into Bangkok and Yokohama, we are greatly


increasing Oakwood Suites’ footprint and bringing a new type of contemporary luxury to guests and travellers alike in both markets,” said Dean Schreiber, interim CEO of Oakwood and managing director of Oakwood Asia Pacific.


42 | RELOCATE | AUTUMN 2019


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