What is a Serviced Apartment?
By Mark Harris
Demand
This grading system for serviced apartments looks at similar criteria as the hotel industry
An analysis of types of apartments being
booked by corporates and agents reveals
some striking contrasts. Whereas 68% of
corporates book extended stay products,
compared to 45% booking corporate
housing, amongst agents the demand for
corporate housing is stronger; 80% of
agents who responded to the survey are
booking this type of apartment for corporate
clients compared to 57%booking extended
stay. This includes travel, relocation or
hotel booker agents.
The strongest regions for both extended stay
and corporate housing are unsurprisingly
North, Central and South America, however
in Australasia extended stay scores well
over corporate housing.
Corporate purchasing patterns vary
significantly, fromthose utilising apartments
for corporate relocation, to those using
aparthotels for customers visiting for
periods of more than 30 days and
condominium-style apartments for staff
on assignment for 6 months or more.
The other types of product categorised as
apartments by corporates and agents
include single family homes, self-contained
apartments within bed & breakfasts, family
accommodation, country cottages and
even some holiday lets in areas where
there is little corporate housing available.
Agents reported the presence of a
concierge or reception desk as ranking
highly in their clients' priorities when
booking an apartment.
The responses of operators to The Apartment Service's survey suggests that most
operators are focussing on the upper end of the market, with the four star category
being claimed by most in all regions.
| Europe | 6.4% | 43% | 59% | 26.9% |
| North America | 12.9% | 45.2% | 71% | 25.8% |
| South America | 0% | 75% | 75% | 0% |
| Middle East | 0% | 0% | 80% | 40% |
| Africa | 0% | 50% | 33.3% | 16.7% |
| Indian sub continent | 0% | 70% | 50% | 0% |
| Australia / New Zealand | 0% | 16.7% | 83.3% | 16.7% |
| Asia | 0% | 20% | 90% | 50% |
Source: The Apartment Service Global Survey 2008
Indicative unit sizes for extended stay hotels (m2)
| Studio | 30 | 35 | 35 |
| One-bedroom | 40 | 50 | 55 |
| Two-bedroom | 60 | 70 | 85 |
Source: HVS Research
