inTroducTion

superCiTy

Safe HAVEN

The serviced apartments sector has been quick to respond to the new business travel environment

Cheval Old TOwn Chambers

Serviced apartments have

fared better than most in the hospitality sector amid the ravages of the pandemic. In the new travel environment, business travel buyers are recognising the benefits of living in safe, private spaces compared with traditional hotel rooms.

“Serviced apartments provide space where you don’t have to leave the room for housekeeping and where you have total control over what – and indeed whom – you bring in,” says James Foice, Chief Executive Officer of the Association of Serviced Apartment Providers.

According to a report published in November by hospitality industry consultants HVS, serviced apartment operators have been able to weather the storm better than their hotel counterparts, largely due to their ability to adapt quickly. More than half of companies surveyed by HVS said at least three quarters of their properties remained open during lockdown. Many had made a swift move from corporate demand to housing key workers, government employees and those selfisolating during lockdown. More recently, serviced apartments have transformed their spaces to meet the demands of the new working environment, providing those working remotely with a safe and productive place to base themselves.

Of course, the sector hasn’t gone completely unscathed. The HVS report analysed around 7,800 serviced apartment rooms across Europe and found a 48% decline in occupancy for the first nine months of 2020, along with a fall in average rates of around 12%, causing RevPAR performance to decline by 54% in the year to September 2020 compared to the same period in 2019.

But things are looking up. “Outside the lockdowns across our European estate, we are seeing our occupancies starting to rise and there is clearly a pent-up demand for travel, particularly domestically. As it stands, our properties in all 12 locations are trading,” says Paula Mullaney, Commercial Director for Staycity.

George Westwell, Cheval Collection CEO, also remains upbeat: “Cheval traded continuously in 2020, maintaining average occupancies of more than 60%," he says.

Rapid response

To support the industry as the first wave of Covid-19 took hold, the ASAP set up a resources page where latest information and guidance from governments and travel trade bodies worldwide was posted. The association also sent out daily updates and “kept the community optimistic about some kind of future post-pandemic”, says Foice.

It also launched the ISAAP Promise of rigorous hygiene standards, which covers what to expect before guests arrive, explaining the pre-stay disinfection and

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deep cleaning, guidance on PPE, signage, and attention to high-touch points. This continues throughout a stay, with advice on maintenance visits, food deliveries to the premises and guest assistance. There is a post-stay follow-up too.

“This is all now part of ISAAP’s nine-point accreditation process, which is also open to non-ASAP members,” says Foice.

“Many members have since also adopted additional hygiene assurances, but having a trade body standard made it easy for them to show their response to the pandemic by following an established IPC [Infection Prevention and Control] protocol, especially in the early days.”

United front

The ASAP has seen membership continue to grow and now has members in 27 countries and more than 200 cities, including 14 new members this year.

The association recently set up the ASAP Buyers Group, comprising key TMCs and bookers of business travel with ISAAP accredited members. The objective was to build up the trust necessary for employees to travel and an awareness of the ISAAP Promise. The second meeting introduced buyers to ISAAP-accredited providers to discuss the implications of the new ISO 31030 (Travel Risk Management).

Meanwhile, The Global Alliance of Serviced

sTudiO dublin CasTle

The sector is young and nimble... which has meant it was well ahead of most in implementing Covid-19 safety measures”

Accommodation, founded by ASAP, the CHPA and the Serviced Apartment Association of Singapore, is in talks with bodies that include the GBTA, BTA and ITM about achieving a common consistency and safety across housing sectors.

In response to the general reluctance to travel, many operators are offering flexible rates and cancellation policies, including Adagio, PREMIER SUITES and Lamington Group, and Covid-19 has put technology on fast forward, driving progression in six months that would normally have taken years. This includes check-in/out on apps that also allow food ordering and communication with housekeeping, front desk and concièrge services.

Safety first

Putting travellers into serviced apartments was already part of corporate social responsibility but the coronavirus has boosted the need for organisations to reassess the safety and comfort of their employees. Duty of care has never been higher up the corporate travel agenda. "Our responsibility as operators is to ensure we go above and beyond their health and safety expectations so we can help instil confidence to travel," says Wayne Androliakos, COO of Cycas Hospitality.

Serviced apartments’ inherently discrete and spacious units have allowed operators to respond quickly to needs raised by the rapid spread of Covid-19.

“The sector is young and nimble and in many cases still has a very hands-on management or ownership structure, which has meant it was well ahead of most in implementing Covid-19 safety measures before they were demanded," explains David Smith, Director of City Apartments.

The ASAP is confident in the sector's future. "Clearly things are looking positive in light of changing traveller and buyer priorities, and intelligence has it that both operators and agents are feeling positive about the next 12 months," says Foice. "We have been pushing to promote safety and credibility in the serviced apartment sector for many years and it is very rewarding to see that corporate buyers are now putting traveller wellbeing and safety at the top of their priorities."

Times have been tough for the entire hospitality industry but the resilience and versatility of the serviced apartments sector is helping it face the future with confidence.

Creating sanctuaries

We believe travel should be a rich journey of discovery, especially when it’s for business. Because after all, we’re still ourselves when we’re at work.

edyn has been creating distinctly designed aparthotels for over 20 years and we’re looking to the future. Get in touch with our sales team to discover our new openings in London, Dublin and Munich and details on our international travel solutions.