The 2017 guide to
Serviced apartments
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The 2017 guide to
SERVICED APARTMENTS
The 2017 Guide to Serviced Apartments Welcome to The Business Travel Magazine’s fifth annual guide to serviced apartments, produced in partnership with the Association of Serviced Apartment Providers
WRITTEN BY Catherine Chetwynd EDITOR Andy Hoskins andy.hoskins@ thebusinesstravelmag.com PUBLISHER David Clare david.clare@ thebusinesstravelmag.com SENIOR SALES MANAGER Craig McQuinn craig.mcquinn@ thebusinesstravelmag.com
he serviced
T
Despite all the good news –
address these issues for the
apartment
and the sector’s unchanging
good of guests and suppliers
sector has been
USPs of space, flexibility and
alike and to promote the sector
described as
competitive rates – many of the
as a whole. We are delighted to
‘maturing’ for
same issues that have hindered
work with them in raising the
several years but it is perhaps
uptake of serviced apartments
sector’s profile among
evolving more now than ever.
among corporates continue to
corporate travel managers and
raise their head.
bookers as increasingly more
Among the evidence is the launch of several new brands
Among them are a lack of
discover the benefits of
from well-established serviced
consistency – just what can you
integrating serviced apartments
apartment operators and the
expect of a serviced apartment?
alongside hotels in their
rise of aparthotels. Both
– and the patchy presence of
accommodation programmes.
EDITORIAL DIRECTOR Steve Hartridge
concepts help providers widen
online bookability. And then
their appeal and win over new
there’s the sometimes blurred
Andy Hoskins, Editor
CREATIVE DIRECTOR Matt Bonner
demographics.
lines between agents and
The Business Travel Magazine
DESIGNER Monica Notarnicola PRODUCTION MANAGER Clare Hunter MANAGING DIRECTOR Martin Steady
The last 12 months has also seen serviced apartment supply
posed by new entrants and
grow by ten per cent, while
disruptors like Airbnb.
figures suggest over three-
Serviced Apartment Providers,
sampled serviced apartments.
has made it its mission to
CONTENTS THE 2017 GUIDE TO SERVICED APARTMENTS
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Images courtesy of suppliers as indicated and sourced from istockphoto.com and bigstockphoto.com
ASAP, the Association of
quarters of corporates have
The 2017 Guide to Serviced Apartments is brought to you by BMI Publishing, producers of The Business Travel Magazine. (Print) ISSN 1754-8543.
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operators and the challenges
04
Industry Overview The serviced apartment sector’s star is rising
08
Model Behaviour What to expect from serviced apartments
11
Agents, Operators & Alliances Unraveling just who offers what
04
15
Corporate Adoption Making the most of long-stay accommodation
08
19
Hotel Groups The global hotel groups’ apartment options
20
The Next Generation What next from this evolving sector?
24
Supplier Directory A selection of ASAP agents and operators
20
26
Data The serviced apartment sector in numbers
Recycle When you have finished with this magazine please recycle it
THE 2017 GUIDE TO SERVICED APARTMENTS
3
INDUSTRY OVERVIEW
Growth and evolution Both supply and demand for serviced apartments is on the rise but the burgeoning sector nevertheless faces a series of challenges
“Serviced apartments often offer significant savings on hotel accommodation”
S
erviced
Account Manager for Citybase
living with the security and
Apartments, Chris Lyon. “The
have long
familiarity of a hotel experience
savings that can be achieved are
been used by
but when guests walk upstairs,
greater with an increased length
businesses
they get their own apartment.”
of stay (14-28 nights plus) with
Aparthotels also cater well to
reductions that are not usually
whose employees are on the road for more than five days or
requirements of travellers who
so, the threshold beyond which
need accommodation for longer
anyone in a hotel room might
periods and for groups.
require the freedom, flexibility
All this adds up to good duty
available in an equivalent hotel. “And once corporate rates have been negotiated, guests enjoy continuous flat rates,
and space that a serviced
of care: travellers are safe,
whereas hotel tariffs will
apartment delivers.
secure and have a relaxed
fluctuate over busy periods”.
But with the increasing
environment to return to after
Also, serviced apartment
number of aparthotels now
a day’s work while rates are
accommodation is generally
entering the market, the profile
generally lower than hotels in
equipped and finished to a
of guests making use of
comparable areas.
higher standard than that of
serviced apartments is subtly changing.
“Serviced apartments often
an equivalent hotel.
offer significant savings on hotel accommodation, particularly
The flip side
hinder our progress in transient
when viewed with the additional
There are, however downsides.
travel go away with branded,
costs of food and beverage
It is not always clear what is
purpose-built aparthotels with
allowances and ancillary
included in the rate and that
a 24/7 concierge,” says Ben
expenditure such as hotel wifi
varies significantly according to
Harper, Sales Director for SACO.
and parking,” says Senior Key
supplier. And self-check-in, meet
“All the barriers that used to
4
“They offer the best of hotel
apartments
THE 2017 guide to serviced apartments
INDUSTRY OVERVIEW
lobbying programme and its
business travel but 18 months
Legal Think Tank Strategic
later, that figure had fallen by
Group is working with Ian
around 9%. Figures are also
Charman of Turner Morum and
down by 2.2% for project
will be submitting a written
workers and relocation (7.25%).
objection to the Valuations Office on behalf of members. It is urging its members to do
In addition, just 47.4% of companies report that their usage for business travel is
the same. “Such rate rises could
increasing. McCrow concludes
put people out of business,”
that interest is not waning but
says ASAP’s Chief Executive,
that mature corporate
James Foice.
accommodation programmes routinely include serviced
Supply and demand
apartments and the sector is
Meanwhile, the market continues
now more secure in its niche.
to grow, which is reflected in lower occupancy. “With more
Corporate uptake
supply coming in and a relatively
Travel management company
cautious corporate market, there
Redfern says its clients spent
is definitely a level of anxiety,”
25% more on serviced
says SACO’s Ben Harper.
apartments between January
“However, this presents us with Pictured above: Roomspace Reigate; Right, from top: Leman Locke by SACO; Staycity Heathrow; BridgeStreet
and greet or key collection are
an opportunity because we are
more labour-intensive for
a value proposition and serviced
customers than a manned
apartments tend to do quite
reception and are less reliable.
well in tricky economic
In addition, “There are challenges in distribution and
“There are challenges in distribution and visibility of serviced apartments via online booking channels”
situations,” he adds. “In the next 12 months, we
visibility of serviced apartments
will see strong regional growth,
via online booking channels,
with hotels and serviced
with 30% to 40% of serviced
apartments increasing by
apartments still not easily
around 10% in Manchester and
available online,” says Lyon.
7% in Birmingham, Bristol,
“And cancellation policies often
Edinburgh and Belfast, as more
differ as you go from supplier to
organisations focus their
supplier,” he adds.
activities on markets outside
Industry organisation ASAP, the Association of Serviced Apartment Providers, aims to
London,” he says, suggesting demand will match supply. Overall, according to Chief
promote the sector to potential
Executive of The Apartment
and existing consumers,
Service, Charles McCrow,
operators and agents, travellers
writing in the Global Serviced
and anyone who has an interest
Apartments Industry Report
in the sector. Its improved
(GSAIR) 2016/17, “Serviced
website, launched in May 2016,
apartments continue to be
plays an important part in that,
adopted into corporate travel
as does ASAP’s information
and mobility programmes,
portal, The Hub.
although our research shows
The association is taking
that while usage of apartments
action regarding government
by existing clients is still
proposals to change how
growing, the rate of adoption
business rates are evaluated,
could be slowing down.”
which in some cases, will cause
and September 2016 than the
At the time of the 2015/16
rates to increase by 80%.
report, 74% of corporates were
And it is supporting the BHA’s
using serviced apartments for
THE 2017 guide to serviced apartments
5
INDUSTRY OVERVIEW
same period the previous year, and that room nights booked over the same period have risen by 33%. “Temporary relocation of employees is becoming increasingly common practice and we’re seeing longer stays and increased spend in the serviced apartment sector,” says Redfern’s Business Development Director, Kate Wimpeney. “There has been a step-change in the sector, with big name hotel brands exploring ways to enter this growing market. The whole uplift is driving savings for our customers which
restricted supply in required
is excellent news.”
locations the number one problem for 65.4% of
Service expectations
respondents, although that is
Not surprisingly, as awareness of
down 7% against 2015/16.
serviced apartments has grown, levels of expectation among
a clear procurement process,
corporate buyers, travellers and
including tortuous booking
TMCs also increase. Free wifi
methods; inconsistent product
access is the number one
quality, services and amenities;
requirement (83.08). Although
and lack of recognised brands.
much is made of the 24/7
Pictured below: Skyline Carlow House; Right, centre: Premier Suites Plus; Right, bottom: Marlin Apartments
that by 2020 there will be a 50%
ranked only seventh (21.2%).
increase in overseas assignments
Obstacles to greater corporate
M
Y
CM
MY
CY
Nonetheless, PwC predicts
reception in aparthotels, it was
use remain unchanged, with
C
Others barriers are a lack of
CMY
K
undertaken, which augurs well for the sector, as does the continued rise in spending on business travel. The Global Business Travel Association estimates $1.25trillion was spent on corporate travel worldwide in 2015, up 6.5% on 2014. growing interest amongst
Maturing market
institutional funds in the sector,”
Serviced apartment supply is
states Charles McCrow.
growing in line with demand.
sign of a maturing market.
GSAIR, inventory has more than
McCrow adds: “We’ve been
doubled to 826,759 units
tracking the growth of the
worldwide, which represents a
sector since our first GSAIR in
hike of 10.5% in the past 18
2008. Back then, we estimated
months alone.
there were 401,997 apartments
Paradoxically, this is despite
6
THE 2017 guide to serviced apartments
This interest says it all: it is a
Since 2008, the year of the first
in 6,722 locations. During the
the fact that operators are
intervening eight-year period
having trouble obtaining finance
supply has more than doubled.
and finding suitable real estate,
Without exception, supply has
“although the former is
increased in every region
gradually being alleviated by
year-on-year.” ↸
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MODEL BEHAVIOUR
Dealing in diversity Serviced apartments is a catch-all phrase that covers a wide range of products and operating models, so just what can you expect once you open the door?
“It is difficult to achieve absolute consistency when there are so many configurations and variations of serviced apartment”
A
s highlighted in
fitness room, free breakfast or,
the introduction
increasingly, a café/restaurant or
been crafted by HVS in an
to this supple-
deli in a communal area.
attempt to standardise
ment, product inconsistency is
terminology in the industry.
is typically residential
Here, aparthotels range from
still a drawback in the sector
apartments upgraded for stays
budget to luxury, have fixed
and there are several models of
of 30 days or more and sold
inventory and staff employed on
serviced apartment, each
with furnishings, weekly
site, with manned reception and
offering different product and
cleaning, utility charges, local
services such as F&B on property
service, and are appropriate for
municipal taxes, phone/wifi/TV,
or nearby. They fall under C1
various lengths of stay.
and guest services.
planning (short let) and provide
Extended stay hotels, also
This category falls into two
space to work, eat and sleep.
known as aparthotels, are
types: apartments rented and
largely studios and one-bed
maintained by the operator;
self-contained apartments in a
apartments, with a few two-bed
and those rented for a particular
residential building that is
versions, largely in urban
requirement and handed back to
managed by an individual or
locations and offering en-suite
the owner when that finishes.
legal body. It is better suited to
bathrooms, fitted kitchen,
A third type, condo-hotels, is
Corporate housing comprises
longer stays, has in-room
lounge/dining area, desk and
largely found in South America
laundry (washing machine); and
chair, internet access and
and comprises hotels with
24-hour service contact.
telephone line.
condominium units that are privately owned and can be
Product confidence
(some 24/7), shared laundry
rented out and managed by the
Confidence in brands helps the
facilities and sometimes a
hotel just like other rooms.
sector grow: “Serviced
Properties have receptions
8
Corporate housing, meanwhile,
Further definition has also
THE 2017 guide to serviced apartments
MODEL BEHAVIOUR
barometer for clients. The
has expanded to 170 in 13
association has also made great
countries, including the UK,
strides in rolling out its scheme
US, Canada, Africa, Belgium,
on an international level with
the Netherlands, Norway,
the assistance of the CHPA.”
Switzerland and Luxembourg.
ASAP’s James Foice says,
Kim Ashmore has been
not-for-profit trade body is to
appointed to the new position
ensure that the consumer has
of Business Development
the confidence to book serviced
Consultant at ASAP.
apartments anywhere around the world.” He continues, “The corner-
Consistent standards do not mean bland accommodation: “The critical role for us is to
stone of this is our Quality
benchmark quality standards
Accreditation Programme, the
and health and safety standards
leading global programme for
through our accreditation
apartments are a relatively new
the sector, which ensures we
programme, to provide clear
accommodation concept in
continue to drive up, maintain
expectations of the product, so
EMEA, unlike in the US, where
and inform about standards
that consumer expectations are
they are well established,” says
around bookings, facilities and
met, if not exceeded,” says
Sales Director EMEA for Skyline
health and safety.”
Foice. “But equally it is
Worldwide, Lorna Keen. “In
The programme has been
EMEA, there are many more
extended to agents, with four
discourage entrepreneurs who
new brands emerging that are
accredited and more to come.
are introducing great innovation
attracting attention.”
The association’s membership
in our sector.” ↸
Branding is taking off in a big way in the ever-growing number Pictured top: CitySuites Manchester; Above: Leman Locke by SACO
And to further this growth,
“Our key objective as a
of aparthotels, with the launch of Leman Locke by SACO, which opened in London in October. Edinburgh follows in 2017 and then Amsterdam and Dublin. Guest appearances from Masterchef finalists Billy Wright and Jack Layer will bring a culinary programme to Locke by SACO, including supper clubs and masterclasses. And BridgeStreet’s Mode will take up residence in retro-fitted buildings in Washington DC and Paris next year, with five planned for California and up to 15 in India by 2022. This variety does not aid consistency: “It is difficult to achieve absolute consistency when there are so many configurations and variations of serviced apartment,” says SilverDoor’s Caroline Saunders. “In terms of consistency of quality and health and safety, ASAP’s Quality Accreditation scheme is proving a useful
important that we do not
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SERVICED APARTMENT EXPERIENCES
AGENTS & ALLIANCES
Blurred lines Agents, operators and alliances all fulfil different needs in the industry, but the multiple roles played by some companies can cause confusion
“Transparency is crucial and any provider who is selling the inventory of third parties should be making that clear to its clients”
he debate
operator. Maintaining positive
ability to manage accommo-
regarding the
and collaborative relationships
dation needs outside fixed
roles of agents,
with operators is crucial to fulfil
inventory, should requirements
operators
accommodation requirements
change,” says Morgan.
and hybrids
and something which SilverDoor
“As with agents, hybrids
rumbles on but the truth is, it is
and Citybase take seriously,” says
become dependent on third
a co-dependent relationship.
Citybase Apartments’ Partner
party operators when sourcing
Relations Manager Kurtis Murphy.
outside their own stock,” says
T
“Agents offer a one-stop shop and critically, one point of
Operators own or manage
Morgan. However, transparency
contact for corporates and the
properties and deal direct with
is crucial and any provider who
traveller,” says Commercial
buyers, who benefit from local
is selling the inventory of third
Director for Clarendon Serviced
market knowledge, which is
parties should be making that
Apartments, Peter Morgan.
particularly valuable in a
clear to its clients.
“Agents access all major
destination a buyer does not
UBS’s main requirement is
operators in the marketplace
know. In addition, there are no
in London, Zurich, Paris and
but their success in managing
referral fees and accountability
Frankfurt, where BridgeStreet
corporate expectations is largely
for the welfare and comfort of
has good coverage. “If they have
dependent on having trusted
the employee during a stay is
to use a partner, they clearly
and reliable relationships with
with the operator and ultimate
communicate that to me or to
operators, who control the
service provider.
the traveller. They use only
inventory,” says Morgan.
Hybrid companies fulfil both
partner companies that conform
Similarly, “Agents occupy
roles. “Hybrids can offer greater
to the standards they have set
an interesting middle ground
assurance to buyers – guaranteed
out,” says Group Corporate
between the guest and the
inventory and rates, with the
Services, Global Travel
THE 2017 guide to serviced apartments
11
AGENTS & ALLIANCES
company’s relationship with
easily accessible to clients and
Airbnb and Onefinestay.
providing a wider distribution
“Consumers are looking for different types of accommo-
alliance are the use of robust
want to deliver a B2B version of
systems, dedicated trust
that, a wide range of accommo-
operators and transparent
dation – apartments, houses,
processes that are enhanced
cranes in Amsterdam – where
with training, education and best
buyers get all the security,
practice alignment of members
assurances and duty of care you
and partners,” says Managing
get with a professional serviced
Director of Group Commercial
apartments operator.
Sales for The Apartment Service, Jo Layton, in the company’s
support corporates are looking
GSAIR report. The TAS Alliance
for – consolidated billing,
now numbers more than 55,000
consistent reporting, account
apartments in 160 countries.
management and financial
Similarly, SilverDoor’s purchase
services, so that they do not
of Citybase means the Orbital
have to pay by credit card at the
Partnership is to be given a new
time of booking, including a
lease of life. The platform allows
booking platform that can be
operators and property partners
quite common in the industry to
completed online in real time or
to source inventory to meet
source accommodation from the
by traditional reservations by
client requirement where they
market and we have mitigated
telephone or email.
have none, giving free access to
Management, Kevin Carr. “It is
that as far as we can.” But if hybrid service providers
“It is about widening our proposition to clients, while
the global SilverDoor Citybase network of 160,000 apartments.
are contentious, Airbnb and
providing a layer of assurance
other disruptors really rattle
from a governance perspective,”
and book with instant availability
cages. They are gaining ground
says Hinds.
and rates, and view and amend
with travellers, and relationships
BridgeStreet is listing its own
“Operators can search online
current bookings,” says Stuart
with the serviced apartments
properties as well as promoting
Winstone, Commercial Director
industry vary from the cautious
Airbnb options, although Hinds
for both companies.
to fully embedded.
admits the balance is currently in
SACO is testing Airbnb in some
favour of BridgeStreet’s listings
regional UK markets but, “The
rather than clients’ looking for
reservation process for facilitating
Airbnb inventory.
enquiries is really cumbersome
The company is also integrating
and resource heavy,” says the
Onefinestay properties in five or
company’s Ben Harper.
six cities into its system, which
And compliance with duty of care and traveller welfare requirements is difficult when
was scheduled to go live in November 2016. Elsewhere, The Ascott has
Airbnb is a technology facilitator
invested in China’s equivalent
rather than a provider, which is
of Airbnb, Tujia.com, with which
why many buyers are reluctant
it will operate and franchise
for travellers to use it.
serviced apartments, and
However, BridgeStreet takes another view. “We are
12
“Key features of a successful
dation, not just hotels, and we
“BridgeStreet provides all the
Pictured above: Vision Apartments; Below: Cotels Luton; BridgeStreet
channel for partners.
Oakwood in Asia sells on Airbnb. A relationship of a less
increasingly trying to create a
inflammatory nature is the TAS
marketplace for alternative
Alliance, launched in 2014 to
accommodation and serviced
unite independently owned and
apartments fit into that
operated serviced apartments
description,” says Managing
on one platform, making
Director Shaun Hinds of the
independent accommodation
THE 2017 guide to serviced apartments
AGENTS & ALLIANCES
“Orbital Partnership generates revenue for this business and
“A property not affiliated with a major brand will face the challenge of establishing its own system and channels, a process that is difficult, expensive and time consuming”
Dutch company Short Stay Group and esa in the UK.
for the property partners who
These relationships make
sign up to it, but it needs a bit
sense because they broaden
of tweaking and it will get a
the offering available to travel
SilverDoor relaunch,” says
buyers under a well-known and
SilverDoor Managing Director,
secure brand umbrella.
Marcus Angell. “We will be encouraging
“The affiliation of individual properties with major brands
serviced apartment operators
means that customers have
who do not have the volume to
an easy and well understood
provide an agent service, to use
method to book and pay,” says
Orbital Partnership and we will
Director of Cycas Hospitality,
make that part of our commercial
John Wagner.
agreement. It will be free. If an
“A property not affiliated with
agent has a corporate client with
a major brand will face the
business in Hull or Glasgow who
challenge of establishing its own
wants to go to London, Cardiff
system and channels, a process
or Southampton, we’ll do it
that is difficult, expensive and
through Orbital Partnership.”
time consuming,” says Wagner.
Less formal and smaller
“It is this distribution technology
alliances also exist such as
that justifies the costs associated
BridgeStreet’s relationship with
with affiliation with a brand.” ↸
Pictured from top: Skyline; Roomspace Reigate
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CORPORATE ADOPTION
Hearts and minds Business travellers are increasingly making use of serviced apartments for long stays, so how are providers ensuring those figures continue the upward trend?
“Serviced apartments can enhance an accommodation programme and this is where the education needs to start”
W
orking with
Global Business Travel Manager
Go Native’s client needs vary
serviced
for GSMA, Leigh Howell, buys 40
from three nights or three
apartment
to 50 nights a month. “We do
months to three years. “Our
suppliers is
secure a good rate for our
negotiation is based on length of
similar to
business and I recognise that
stay and volume and discounts
working with hoteliers in that
more volume equals lower
of between 10 per cent and 15
the more business you can
negotiated rates but you have to
per cent are applied for stays in
guarantee, the better the rates
be realistic,” she says.
excess of seven days,” says
they can offer you. In addition, for stays in excess
“We don’t work on traditional volume-based business as hotels
managing director Shaun Prime. “Typically, stays of 28 days or
of 28 days, VAT goes down from
do,” says SACO’s Ben Harper.
more attract discounts in excess
20% to 4% from the 29th night.
“We look at the opportunity for
of 20% and even deeper
And consolidating business also
new business and appraise at all
discounts apply as length of stay
brings gains. For example, GSMA
levels. Clearly, volume does drive
increases. And seasonality
uses SACO and BridgeStreet;
buying power and economies of
obviously affects our sector, so
PwC uses Go Native and SACO.
scale but we don’t put a finite
we remain flexible with all our
number on it. There’s no formula.”
clients to ensure we mould our
Travel management company
supply to meet their demand.”
“If you spread your business across several providers, they are less likely to discuss preferred
Redfern says its clients’ spend on
rates because you will not be
serviced apartments increased
a programme, it is important that
able to give them enough
by 25% between January and
buyers communicate with
business,” says Head of Hotels
September 2016, based on the
travellers. “More can be done
and Venues Programme for PwC,
same period last year, showing
by buyers to understand their
Sam van Leeuwen.
growth from corporate use.
travellers’ requirements and to
To get best advantage from
THE 2017 guide to serviced apartments
15
CORPORATE ADOPTION
“Purchasing a serviced apartment
for serviced apartments that is
is increasing in complexity.”
more cost-effective than GDS.
Marrying up length of stay with
Cheval Residences uses an
type of property is partly a
Avvio booking platform with
matter of practicalities. Having
which it credits the company’s
two people in a two-bedroom
anticipated 20% growth in 2016;
apartment with sitting room and
and in response to client
kitchen for the duration of a
demand, Go Native is developing
three-month project would
a client portal which will allow
work well, whereas smaller
them to research and book in
accommodation might not.
real time, with automatic billing.
Average length of stay at
Finally, as Shaun Hinds put it,
SACO properties is 14 nights in
BridgeStreet is moving from the
aparthotels and 30 in serviced
1960s to 2017 in one leap: its
apartments, though it does
new website went live in October
depend on the location.
2016 and is optimised for all devices. It will be followed by a
Pictured: Staycity Birmingham; Previous page: Mercedes-Benz Living @ Fraser
Online inroads
live booking platform that shows
Technology continues to inch
content from BridgeStreet’s
towards online booking: around
entire supply chain: serviced
72% of serviced apartment
apartments, Onefinestay and
inventory is now bookable online
Airbnb. User log-in will give
accommodation available to
and that is up nearly 10% on the
corporate clients access to
them,” says Sales Director for
previous GSAIR survey.
properties in their programme.
educate them in the choices of
Myco by SACO is a tool for
“It will be interesting to see
apartments can enhance an
corporate travel bookers that
how many use it because many
accommodation programme and
provides SACO’s inventory in
still have a manual, offline
this is where the education
a tailor-made portal into which
system,” says Hinds.
needs to start.”
the global supply chain will
Skyline, Lorna Keen. “Serviced
Although The Ascott, Cheval
eventually be integrated. Still
Residences, Marlin and Go Native
a company’s needs, these can be
to come are live reporting,
all successfully have stock on
sourced elsewhere and SLAs will
enquiry tracking, management
GDS, the serviced apartments
help ensure accommodation is
information and more.
model does not lend itself to
Where a supplier cannot meet
up to standard.
Clarendon’s apartment
booking on GDS. It can cope
management system provides
with two nights in an extended
understand who they are buying
real-time booking on client
stay property but if a company
from, who actually operates the
portals and via OTAs. Skyline
wants to bring in trainees in
apartments and how many layers
properties can be booked via its
groups of 20 for five nights, or if
of commissions are included in
website, on request and on the
a buyer wants to extend the stay
the final rate,” says Jo Layton of
GDS and, in Brazil, the company
of travellers from one month to
The Apartment Service.
is piloting a distribution system
two, GDS cannot do the job. ↸
“The challenge for a buyer is to
CORPORATE CASE STUDY A travel manager at an investment bank explains how they use serviced apartments. “We buy around 6,000 nights a year from five suppliers and their rates have to be below those of our cheapest hotel in the UK. “Most of our bookings are in London because 90% of our usage comes from India, usually back office staff coming to work on projects. Their average stay is 30 days and our policy states for
16
THE 2017 guide to serviced apartments
more than seven days they should be in apartments. “Apartments are on our intranet and managed through our TMC. Bookers complete a form online and that goes through the agent, who manages it and books the apartments by email or phone. “Our apartments programme runs from July 1 to the end of June, whereas the hotel programme runs from April 1 until the end of March, which
gives us the time to make sure we have got the right properties and to negotiate. “You can’t book most serviced apartments through GDS so it is a different way of negotiating. The terms and conditions are different and we do not do the RFP through Lanyon, it is emailed to providers. We invest the same amount of time in the serviced apartments programme as we do in hotels.”
+44 (0) 20 7368 8801
HOTEL GROUPS
Moving in Experts in short-stay business, many of the world’s major hotel groups have dedicated long-stay brands of their own that are making an impression build guest preference.” says
product. We have continued to
Mike Greenup, Vice President of
improve the free breakfast offer
Brand Management for the
as our guests told us they value
Holiday Inn brand family,
it and would pay a little more for
Crowne Plaza & Staybridge
the room if the breakfast was
Suites Europe.
improved,” says Wagner. He
“For example, the laundry
designer aparthotel trend for
reception are open 24/7, and we
restaurant/deli-café services.
offer free wifi, daily breakfast
Aparthotels Adagio, however,
buffet and an all-day pantry
will be responding to that trend
convenience store.”
and has a strategy to evolve the
Additionally, staff members mix with guests at The Social,
Pictured: IHG's Staybridge Suites; Below: Accor's Adagio brand
T
does not expect to match the
room, fitness room and
brand in the next few years. “We will be changing the
providing informal food and
design of the common areas
drink in a public area at the hotel.
– how lively they are – to
he aparthotel
The brand’s global pipeline is 128
enhance the strong relationship
model may
hotels, of which five are in the
between our customers and our
be taking off
UK and Ireland.
teams, so that they have more
exponentially,
In the Americas, Hilton
contact and we provide more
Worldwide is gathering its
local knowledge,” says Deputy
of the lively, well designed
extended stay brands Embassy
CEO, Karim Malak.
public spaces and food offerings,
Suites by Hilton, Homewood
but some hotel groups’
Suites by Hilton and Home2
on Germany and the UK, where
extended stay brands have been
Suites by Hilton under the
properties in Liverpool and
here for more than a decade.
banner All Suites Collection; and
Birmingham will be followed by
Carlson Rezidor has succumbed
Edinburgh (2017), with
opened in London’s Docklands in
to the pull of extended stay and
Manchester and London among
2004; IHG’s Staybridge Suites
now has 30 properties, mostly in
others on the Europe wish-list.
was launched in Liverpool in
the Middle East, with none in the
2008, followed by Newcastle,
UK nor currently planned.
with much made
Marriott Executive Suites
Stratford and most recently
The European pipeline focuses
Accor will also be looking for opportunities to bring a version of Adagio Aparthotel Premium,
Vauxhall; and Accor’s first
Providing what’s needed
recently launched in Dubai, to
Adagio property in the UK set up
Cycas Hospitality runs Marriott
Paris and London but there is
shop in Liverpool in 2013.
and IHG properties under
nothing concrete yet. ↸
Extended stay hotels provide
franchise, aiming to attract the
accommodation in self-catering
same customer. “The brands
suites but do not generally offer
deliver people to the property
ancillary services such as bars,
but it is the operator’s skill that
restaurants and porterage.
make them successful and
Guests who use them do so because they need a space to live and work. “So it is crucial we
brings people back,” says Director, John Wagner. Staybridge Suites has evolved
create a sense of community
since 2008. “We have enhanced
within our hotels, driven by
the evening reception and made
complimentary services to help
it even more of a feature of our
THE 2017 guide to serviced apartments
19
the next generation
Forward thinking As the serviced apartment sector continues to mature, expect new brands, new ideas and new partnerships as the major players bid to set themselves apart
“Partnerships seem to be the most likely way for serviced apartment players to see good growth”
I
n as dynamic
high-end Mayfair and Edinburgh
expense management, traveller
a sector as
properties, and The Ascott’s
tracking and more.
serviced
Crest Collection gathers
apartments,
together disparate characters
most likely way for serviced
the established
under one name, following the
apartment players to see good
hotel industry model.
growth because flexibility is the
players have to continually reinvent themselves in order to remain at the top.
driver of the business model,”
has reached Singapore while
says Miles Agbanrin, country
Oakwood Asia Pacific has added
research analyst for Euromonitor
is currently in aparthotels, where
Oakwood Studios to its Premier,
International.
companies are taking over larger
Residence and Apartment brands.
The greatest area of innovation
blocks to deliver a mix of
Large lobbies in which guests
Cheval Residences is giving
can work, relax, eat and drink are
business – transient, medium
guests smartphones with free
also becoming the norm. “We are
stay and long-stay relocation
calls within the UK and to 11
seeing a transformation to edgy
guests. Go Native’s properties on
other countries, plus 3G and 4G
interiors and creative communal
London’s South Bank and in
connectivity; as are Marlin (in ten
space designs which appeal to
Croydon conform, as does
countries) and City Apartments
millennials,” says Commercial
Leman Locke by SACO.
(worldwide) – all in partnership
Director for Clarendon Serviced
with Handy phone.
Apartments, Peter Morgan.
In addition, branding is making its mark, with Locke by SACO
20
Mercedes-Benz Living @ Fraser
“Partnerships seem to be the
Other relationships include
Locke and Go Native have
and BridgeStreet’s Mode joining
those partnering with office
gone down that route, as have
the fray. Relative newcomer
space providers (Marlin and
Zoku and Staycity in Heathrow,
Apple Apartments launched
Select Apartments), while
Birmingham, York and all further
Apple Exclusive to embrace its
SilverDoor is considering
launches. The latter company’s
THE 2017 guide to serviced apartments
Go Native. We’re Growing! With a fantastic range of properties from Kensington to Hoxton, we're London’s largest provider of Serviced Apartments, and with further openings in London and major towns and cities across the UK, we’re growing fast. Our product is as strong as ever, our service is second to none, and with the industry’s leading technology, our apartments are as simple to book as a hotel. Why not talk to a member of our team, and join us on our journey to becoming the UK’s first choice for Serviced Apartments.
gonative.com |
020 7221 2028
the next generation
has exceeded its five-year goal of managing 50 apartments and now manages 58. Elsewhere outside the UK this year, Frasers opened in Geneva (67 units) and Istanbul (80); The Ascott took on properties in Hyderabad, Bangalore and Sri City, India; Zoku launched its first property in Amsterdam, with two in Paris to follow; Dutch brand Yays opened 129 units in three buildings and has 400 more signed this year (2016); B-Aparthotels opened in The Hague (60); and BBF added 20 units in Brussels. Staycity will expand in France in 2017
UK apartment additions London 2016 OPENINGS Appetite for accommodation in London remains undiminished and in 2016 the following opened for business, among others: Flying Butler in Victoria and Richmond; Staycity extended its Heathrow aparthotel (125); LAK Serviced Apartments opened an aparthotel in South Kensington (24); Apple in Kew and Park Lane; SACO Cannon Street (77); Lamington UK in Hammersmith (16); Skyline in Mornington Crescent (50) and Canary Wharf; Oakwood in Canary Wharf, Kensington and Fitzrovia; Leman Locke by SACO (168); the squa.re at Canary Wharf and the City; Roomspace, Kew; and Go Native, Stamford Street (59).
opening in Marseille (108) and Lyon (144); BridgeStreet’s Mode takes up residence in Paris (47) Pictured: Vision Apartments
Covent Garden property
and Edinburgh (82) in 2018; and
premium brand with higher spec
Premier Suites is looking at 12
fittings and probably service
locations in the next three years,
levels too, with a view to upping
including Rotterdam (2017) and
the ante in city centres where
Amsterdam (2019). Dublin and
the core Staycity model may
Switzerland are cities that
have difficulty competing.
repeatedly come up as being
Food is also playing a growing role, with nourishment available
short on apartment supply. SilverDoor, meanwhile,
in varying degrees at Go Native’s
forecasts considerable growth in
Croydon property, Staycity in
Asia. “We have had a number of
Birmingham and Heathrow,
clients request that we establish
Marlin’s aparthotel in Waterloo,
a physical presence in the APAC
Leman Locke and BridgeStreet’s
region and in October 2016, we
Mode brand. Staying Cool’s
launched SilverDoor Asia in
plans for expansion include
Singapore,” says Head of
food that will be provided via
Marketing, Caroline Saunders.
concessions such as Pret or Eat. In terms of global growth, three
And recently announced is the appointment of Cycas
operators are planning significant
Hospitality by Starwood Capital
expansion: The Ascott will double
to run the former Think extended
in size to 80,000 units by 2020
stay properties in Earls Court,
and Frasers Hospitality will add
London Bridge, Bermondsey and
9,000 units to reach 30,000 by
Tower Bridge in London. They
2019; and Oakwood is pro-
are undergoing comprehensive
gressing with plans to triple the
refurbishment and will be ready
number of its branded properties.
mid-2017. In addition, having
In the UK, Go Native is
22
and Washington (50) in 2017,
(under construction) will be a
agreed heads of terms with
doubling in size to 3,000
Slough Urban Renewal (SUR),
apartments by 2017, opening in
Cycas will operate a dual-
Manchester, Bristol, Newcastle,
branded Residence Inn (92)/
Glasgow and Reading; and in
Moxy (144) property on the site
less than three years, UrbanStay
of the former Central Library. ↸
THE 2017 guide to serviced apartments
London 2017 ANd beyond Among new suppliers opening properties in 2017 are Marlin in Waterloo (238); Roomzzz in Stratford (87); Staycity in Covent Garden (106); Grange Hotels in Tower Bridge (273); Go Native in Bear Gardens (75); and in 2018, Lamington in Chiswick (78); and in 2019, Citadines in Islington (108); and Staybridge Suites at Heathrow (190). Rest of the UK There is also much activity across the rest of the UK. Premier Suites opened in Glasgow (45) and Reading (41) in 2016; Fountain Court in Edinburgh (20); Apple in Liverpool, Edinburgh and Newcastle; House of Fisher in Newbury (22); esa in Reading (9) and Newbury (23); Cotels in Luton (22); SACO in Bath (9); Staycity in Birmingham (170) and York (190); Roomspace in Reigate; and BridgeStreet has taken Broadway Residences in Birmingham. In 2017, CitySuites launches in Manchester (237); Lamington in Southampton (71); Staycity in Liverpool (202) and Manchester (182); Locke by SACO in Edinburgh; Cotels in Milton Keynes (12); Eliot Group in Liverpool (116); Lateral City in Edinburgh (50) and in 2019, Glasgow (43); Apple in Edinburgh (21); and BridgeStreet’s first Stüdyo opens in Paddington (21), followed by Edinburgh (80) in 2018. Further Stüdyos will follow in areas where there are tech hubs such as Shoreditch, London. (Unit numbers subject to change)
One agency, 7 global offices
New York London Lisbon Madrid Barcelona Frankfurt Singapore
The Apartment Service is perfectly placed to provide the most comprehensive, connected, serviced apartment programmes across the globe We are renowned for successfully handling some of the most challenging accommodation needs, in order to understand how we can help handle yours, contact our experienced teams in any of our seven offices, we are ready to take your call +44 (0) 20 8944 3612 info@apartmentservice.com
www.apartmentservice.com
SUPPLIER LISTINGS
Who does what Find out more about the serviced apartment industry’s operators and agents that have supported The 2017 Guide to Serviced Apartments
The Apartment Service
Arlington House Apartments
apartmentservice.com Tel: +44 (0)20 8944 1444
arlingtonhouse.co.uk Tel: +44 (0)20 7629 0021
The Apartment Service, one agency with seven global offices, perfectly placed to provide the most comprehensive, connected serviced apartment programmes across the globe.
Arlington House offers serviced residences in a leafy environment in the very heart of the Exclusive and lively Mayfair, St James’s area.
Clarendon Serviced Apartments
Cotels Serviced Apartments
The Edinburgh Collection
Frasers Hospitality
cotels.co.uk Tel: +44 (0)1908 802853
theedinburghcollection.com Tel: +44 (0)131 560 2050
frasershospitality.com Tel: +44 (0)20 7341 5599
Established in 1997, we are an awardwinning provider in Milton Keynes, Northampton and Luton. Recognised for our efficiency and friendliness, premium service is our priority!
The Edinburgh Collection has 60 serviced apartments in a choice of two locations in Edinburgh, with free wifi, parking, 24-hour reception and daily servicing.
Frasers Hospitality Pte Ltd is a leading provider of premium serviced apartments, hotel residences and boutique hotels with 139 properties across 80 gateway cities.
Go Native Ltd
Mansley Serviced Apartments
Marlin Apartments
Monarch House
gonative.com Tel: +44 (0)20 7221 2028
bymansley.com Tel: +44 (0)800 304 7160
marlinapartments.com Tel: +44 (0)207 378 4840
monarchhouse.co.uk Tel: +44 (0)20 7368 8801
Founded in 1997, Go Native is an award-winning serviced apartment provider. Delivering first-rate, flexible accommodation solutions and exceptional service to our clients and partners alike.
Apartments with style and character offering housekeeping and on-site reception in four outstanding locations including London, Edinburgh and Inverness. Studios to four bedrooms.
Marlin is the largest owner-operator of serviced apartments in London, offering over 700 apartments across prime business locations with complimentary Wi-Fi, 24/7 concierge and fullyequipped kitchens.
Monarch House serviced apartments in Kensington are a perfect home from home. Our 40 exclusive apartments range from one to four bedrooms and are maintained to the highest standard.
clarendonlondon.com Tel: +44 (0)1784 489 200 Corporate focused and all about London! Choose from Marylebone, Covent Garden, Soho, the City and Canary Wharf, then there’s Hammersmith, Kew Gardens and Richmond Park.
24
THE 2017 GUIDE TO SERVICED APARTMENTS
BridgeStreet Global Hospitality bridgestreet.com Tel: +44 (0)20 7792 2222 BridgeStreet Global Hospitality – comprised of six unique brands – is the leading global hospitality solution offering serviced apartment experiences for travellers seeking an alternative to typical hotel accommodation.
City Stay Apartments citystayaparts.com Tel: +44 (0)1908 664516 Providing great customer service in stylish serviced apartments in Milton Keynes and Bedford. Complimentary wifi, parking and Sky TV! The cost effective homely stay for the corporate and leisure traveller.
data
Source: STR Global
Vital statistics The serviced apartment sector in numbers
Industry performance January-September 2016 Serviced apartment occupancy UK-wide 79.8% (-2.2% year-on-year) Serviced apartment occupancy in London 80.2% (-3.3% year-on-year)
What corporates want from a serviced apartment
Serviced apartment occupancy rest of UK 79.3% (-0.7% year-on-year) Connectivity
Single occupancy
Family accommodation
Shared occupancy
Average daily rate UK-wide £137.59 (-0.1% year-on-year) Average daily rate in London £179.59 (+1.5% year-on-year)
Top obstacles to greater corporate use of serviced apartments
In-house services
Amenities
Staffed reception
Shortage in key locations
Inconsistent services
Lack of procurement process
Lack of recognised brands
Booking can take too long
Some people don’t like them
Average daily rate rest of UK £93.54 (+4% year-on-year)
Pre-trip assessment
72%
Percentage of serviced apartments bookable online
2016-2017
63% 2015-2016
Source: The Global Serviced Apartments Industry Report 2016/17. Download the full report at www.apartmentservice.com/gsair
SAMPLE RATES IN European CITIES (¤) (All rates in Euros)
Amsterdam YOY +/- Brussels YOY +/- Frankfurt YOY +/- London YOY +/- Paris
YOY +/-
STUDIO APARTMENT 1-6 nights (nightly rate)
145
+7%
140
+17%
130
-4%
245
-3%
190
+9%
7 nights+ (weekly rate)
870
+3%
810
+10%
835
-1%
1,548
-3%
1,100
+10%
1 month+ (monthly rate)
3,510
+5%
3,300
+4%
3,500
-1%
5,393
-2%
3,640
+1%
3 months+ (monthly rate)
3,200
+3%
3,100
+4%
3,000
-5%
5,032
-3%
3,450
+2%
1-6 nights (nightly rate)
210
+5%
210
+14%
200
-3%
342
-5%
275
+7%
7 nights+ (weekly rate)
1,325
+6%
1,290
+17%
1,100
-2%
2,322
-3%
1,750
+8%
1 month+ (monthly rate)
5,000
+6%
4,300
+4%
4,000
-5%
7,612
-1%
6,000
+2%
3 months+ (monthly rate)
4,600
+5%
4,100
+3%
3,800
-3%
6,903
-1%
5,750
+3%
1-6 nights (nightly rate)
250
+6%
260
+16%
250
-4%
413
-7%
435
+5%
7 nights+ (weekly rate)
1,620
+3%
1,475
+6%
1,475
-2%
2,774
-7%
2,720
+7%
1 month+ (monthly rate)
5,500
+4%
6,100
+9%
5,500
0%
9,677
-4%
9,850
+4%
3 months+ (monthly rate)
5,300
+3%
5,700
+6%
5,000
-5%
9,032
-6%
8,550
+3%
ONE-BEDROOM APARTMENT
TWO-BEDROOM APARTMENT
Source: The Global Serviced Apartments Industry Report 2016/17. Download the full report at www.apartmentservice.com/gsair Disclaimer: Rates are average rates and may vary by location, time of year, regional promotions and specific lengths of stay. Rates quoted are based on an average four-star extended stay property and exclude taxes.
26
THE 2017 guide to serviced apartments