What is a Serviced Apartment and How Do They Differ Over Your Standard Hotel Room?
It is very apparent that service apartments/aparthotels are on the rise, but have you ever wondered what they are and how they compare to the hotels we all know and love? Below we will discuss the key differences along with facts and figures.
Facts & Figures
- UK households spend over 20 billion British pounds on accommodation services each year, both in the UK and abroad.
- 74% of corporates now use serviced apartments for business travel, which is up 11% from 2018.
- Average serviced apartment occupancy levels in London in 2020, were 61.8% above the 59.4% average for hotels.
- London is the largest serviced apartments market in the UK.
What is a Serviced Apartment?
A serviced apartment is a furnished apartment available for short-term lets or long-term stays, which provides amenities, housekeeping and a range of services for guests.
What are Some Key Differences?
It is no secret that whilst staying in your average hotel you are likely to spend a lot of money, not always just on the room but other amenities such as food, television add ons, laundry services and much more! Staying in a serviced apartment tends to reduce the amount, you are likely to spend on these amenities, in doing so offers a level of convenience! Most serviced apartments will offer a fully functional and furnished apartment, similar to the amenities you are likely to find at home whereas in a hotel you will find yourself paying more for the convenience.
Serviced Apartments Vs Hotels
Most people opt for a serviced apartment because they offer far more privacy than a hotel room. Further to this rooms in a hotel are, on an average, 20m2 A serviced apartment, on the contrary, is a full apartment at your disposal and are typically twice the size of an average hotel room (45m2). You are free to use the kitchen, or the washing machine and you may have access to conference rooms and any other amenities within the apartment complex, subject to the rules of the serviced apartment’s owner.
Economic Pros & Cons
Another reason why people choose serviced apartments over hotels, is because it is far more economical, for extended stays. In a hotel room, you do not have the provision to cook and eating out entails spending a lot of money on food that may not be healthy. Serviced apartments come with a kitchen and usually, all basic appliances, such as a microwave, gas stove, plates, and utensils, are provided. Therefore, you can cook, do your dishes, wash/iron your clothes and feel at-home, despite being away from home.
Prices of serviced apartments are not fixed and vary, depending upon the quality of offering, amenities, location, and the neighbourhood. A centrally located serviced apartment will cost far more than that in an upcoming location. Having said that, it is also important to note that most often serviced apartments come up in or close to centres of business, commerce, and tourism which also adds a level of convenience!
Now you know all this information the decision is yours to make, will you opt for an average hotel room on your next trip or perhaps this blog has persuaded you to try a fully equipped service apartment instead?
The MRP Group are leading consultants to the serviced apartment and aparthotel sector, with over 30 years of operational and investment experience in the industry. The team has transacted on over £1bn of assets in recent years, comprising of operator searches, investment sales and M&A. In addition, the team specialises in providing solutions and advisory to its customers. As a result, the team has been nominated for numerous awards including Best Extended Stay Consultancy 2019, Best Service Provider 2019 and Industry Breakthrough and Innovation Award 2019.
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