During IHIF2017 Jonathan Humphries, Chaiman of HoCoSo, was interviewed by Glenn Hausmann from heretostay.tv by Bridgestreet. Mr. Humphries discussed the dramatic shift in terms of the extended-stay (ES) products during his 11-year experience within the ES/serviced apartment sector.
Mr. Humphries mentioned during the interview that the significant ES demand and supply gap has been shrinking during the past 11 years, nevertheless the market is still highly fragmented. Very well placed extended-stay products are doing exceptionally well, from both performance and profitability point of view.
ES demand have always been existing, however consumers have been undeserved with very limited fit-for-purpose products ,or they went to other type of accommodation including traditional hotels and Airbnb. These consumers are fully supportive and fully engaged for a tailor-made product that suits their purposes. “Extended-stay hotel sector is still about hospitality” said Mr. Humphries, “and there still has to be a service aspect which resonates with the consumer.”
Currently both consumers and developers are catching up on the extended-stay concept very fast, creating a unique moment for development. An economically viable product that marries up the consumer’s needs with the development piece can result a very compelling opportunity for market expansion.