Rates Analysis
by Bard Vos & Maggy Sainsbury
After location, price is the most important influence on both corporates and agents when it comes to choosing one serviced apartment operator over another.
And despite the overriding influence length of stay has on price in the corporate housing sector (and to a lesser degree extended stay), there is a clear price benefit offered by serviced apartments over transient hotels
As Daryl Hultquist of Marriott Execustay explains, "the [rate] differences between a hotel and apartment vary, sometimes dramatically, based on the location, season, length of accommodation, etc... In general though, apartments are about a 10-20% discount from a comparable hotel room."
Average savings - serviced apartments vs. hotels
| Average | 9.50% | 18.5% |
| Africa | 17% | 27% |
| Asia | 3% | 8% |
| Australasia | 5% | 19% |
| Europe | 14% | 25% |
| India | 4% | 16% |
| Middle East | n/a | 8% |
| South America | 18% | 21% |
| USA | 15% | 25% |
Source: The Apartment Service 2008 Global Survey. These percentages are based on comparisons of 4 star hotels and 4 star serviced apartments and may vary depending on length of stay, period, regional promotions etc.