This has recently become a considerably harder question to answer as a result of the ever-increasing high number and differing types of accommodation options available.
Serviced Apartments are classed as the primary product within the extended-stay sector and are aptly defined as ‘furnished apartments available for short-term lets or long-term stays, which provides amenities, housekeeping and a range of services for guests…’ (ASAP). Serviced Apartments encompass a unique blend of homeliness and hospitality offerings, allowing the rooms to truly feel like a ‘home away from home’.
As a Business Partner of Serviced Apartment News, one of the industry’s leading bodies, we products within the extended-stay market can be distinguished by the following factors:
- Self-contained apartments in residential building; managed by a single individual or legal entity
- In-room laundry
- More ideally suited to longer average length of stay
- 24 hour service contact (not necessarily on property) – manned or unmanned
- Essential that it is possible to work, cook/eat and sleep in each self-contained unit, whatever the size. Wardrobe /storage appropriate to the size of unit (and length of stay) is also important
- All units featuring kitchen of appropriate size to the unit
Aparthotels – Providing hotel-like offering such as
- 24/7 manned reception on site – room telephone connection to the front desk
- Additional services on demand
- Minimum once-weekly cleaning (more often at extra charge)
- Food and beverage offering in property or within close proximity (either operated or outsourced)
- Creating sense of community by providing common areas such as gym, courtyard etc.
- Laundry if not provided in units
- On average larger units than at a standard hotel including mix of studios, one-bedroom, two – bedroom, in some cases three-bedroom units
- Essential that it is possible to work, cook/eat and sleep in each self-contained unit, whatever the size. Wardrobe /storage appropriate to the size of unit is also important
In-room Kitchen/kitchenette, appropriate to the size of unit
- No minimum stay
As the sector has evolved, the consumer is driving change and distribution into the market place. The desire to have more home comforts available in your room has helped evolve the market into a market place that not only has high extended-stay demand, but is now seeing the business, leisure and ‘bleisure’ transient markets demand the same comfort for shorter stays. As a consequence, many brands have reacted to this and delivered effective and efficient rooms that can range from as little as 22m2 that still manage to facilitate the four main areas within a Serviced Apartment; living, sleeping, cooking and washing areas. However, majority of Serviced Apartments tend to be in the region 30-35m2.
Serviced Apartments & Aparthotels continue to grow and in doing so they are serving the ever increase digital nomad consumer. By 2025, The MRP Group believes a significant percentage of consumers will be treating rental expenditure in a similar manner to their TV and music subscriptions. The change in consumer behaviour between generations has led to an increase in monthly renting for entertainment such as Netflix and Spotify rather than ownership. It is documented and forecasted this approach/trend is likely to transpire into the housing sector, with the expectation that weekly & monthly rentals will become the norm.
Industry leaders such as Savills have forecasted the extended-stay market to be the fasted growing segment of the hospitality market over the short and medium presenting a distinct opportunity for investors to maximise returns and diversify their holdings and for operator to maximise their growth.
Our extensive experience within the sector has enabled us to be come one of the leading consultants to the extended-stay market. Having been the lead advisor for the sector’s largest transaction is just an example of the scale and depth of experience The MRP Group holds.