For stays of a day, a week, a month or a year, serviced apartments (also known in the sector as Aparthotels, corporate housing or extended stay housing) offer a spacious, flexible and cost effective alternative to restrictive hotel rooms, with an average saving of 15 - 30% on an equivalent standard hotel.

   more

HOME > GSAIR 2008/9 > INDUSTRY BENCHMARK > PAGE 11

Industry Benchmark

By Mark Harris

Regional Analysis


Europe (excluding UK)

Major Extended Stay Brands in Europe
BrandsPropertiesUnitsLocations
 
Accor   
Suitehotel20 2,566Germany, Austria, Switzerland - 6 hotels
   France - 14 hotels
Adagio*162,300France and Italy
 
Ascott Group   
Ascott454,944France - 3,522 units
Somerset  UK - 851 units
Citadines Belgium  322 units, Spain 131units
   Germany - 118 units
 
Fraser Hospitality   
Fraser Suites8633London, Paris
Fraser Place   
Fraser Residence   
 
Marriott   
Executive Apartments4265London, Budapest, Prague, Brussels
 
Orco Group   
MaMaison4144Bratislava, Prague, Warsaw, Budapest
 
Prem Group   
Premier Apartments12600UK, Dublin, Antwerp
Premier Suites   
 
Toga Hospitality   
Adina Apartments3350Copenhagen, Budapest, Berlin

* In a joint venture with Pierre & Vacances
Source: HVS Research
Comparison of Pro Forma Operating Performance
FactorFull ServiceExtended Stay
Number of units100100
Occupancy70%75%
Average Rate (€)*100100
Room Nights Sold25,55027,375
DOF1.31.3
Length of Stay2 days10 days
Room Revenue(€) 2,555,0002,737,500
F & B Revenuehigherlower
Total Revenuehigher
Operating Expenses45-65%25-45%
GOP (Gross Operating Profit)25-45%45-65%
* The difference between the full service and the extended stay product is highly dependent on market conditions
Source: HVS Research

Although the serviced apartment sector in Europe is relatively small compared to the US market, it is growing at an ever faster pace. In addition to global players such as Marriott Executive Apartments and Singapore-based Ascott Group, some local players such as Adina Apartments and MaMaison Residences have emerged.

Adina has set up its first hotels in Copenhagen and Budapest, and is now actively looking into the German market, with two definite projects in the pipeline to challenge Derag's market-leading position with over 3,000 apartments. MaMaison, owned by the Orco Group, has a portfolio of full service hotels and extended stay residences in central and Eastern Europe.

Accor has developed dedicated extended stay products in Europe; the company is expanding strongly in Europe with the Suitehotel brand and the Pierre & Vacances joint venture Adagio. The latter will see 22midscale and upscale properties developed, and by 2012 the companies expect to have 50 hotels (6,500 apartments) in operation, with the joint venture managing some €180m.

The Ascott Group operates three distinct brands to capitalise on different target markets: the exclusive Ascott, the upscale Somerset and the mid-market, familyoriented Citadines. And when Staybridge opened their first European externded stay hotel in Liverpool, this marked the first in a planned 14 openings across the EMEA region to take the chain to a targeted 180 properties worldwide.

Serviced aparmtnet picture
Apartment hotel picture
Corporate housing picture