At the IHIF 2018, earlier this month, special attention was drawn to the Serviced Apartment sector: A fascinating response of over 150 delegates joining the panel discussion, showcased that this niche product establishes itself and begins to represent a serious lucrative alternative for investors.
Panelists Guus Bakker – CEO EMEA Frasers Hospitality, Vedrana Bilanovic Riley – CEO CIEL Capital, Jo Layton – Managing Director The Apartment Service and Christabelle MORGAN-DESOUCHES – Aparthotels Adagio‘s International Hotel Development Director all highlighted concept development initiatives:
Developers and owners can compete through a compression of space, innovative room design and great public areas. Kitchens for serviced apartments remain absolutely essential, but there are new ways to take the product further. Extended-stay properties can be fine-tuned through co-working and co-living (the use of shared common facilities). These social concepts enable the industry to outperform substitute products like Airbnb.
The development strategy of creating dual-branded properties is gaining more popularity: dual brand concepts are able to drive revenue and occupancy, while cutting costs through the use of shared facilities.
Benchmarks show that four-star aparthotels can be more profitable on a per square meter basis than regular four-star hotels.
Jontahtan Humphries specified that ‘both consumers and developers are racing to catch up on the extended-stay concept, creating an exciting moment for development’. The growth in consumer demand is further exhilarated through a broad spectrum of new target markets. Today, corporate buyers are looking to place teams and individuals in serviced-apartments of secondary as well as primary location. Proximity to clients, suppliers, and activities is key. However, the development side needs to make a careful selection of ancillary services and facilities to be able to offer the right product.
Along the theme ‘Reaching New Heights’ , the panel discussion pinpointed what is really happening to Serviced Apartments: new products, new players are forming the sector and create lasting potential for the hospitality industry.
Swiss-based HoCoSo, which stands for Hospitality Consulting Solutions, brings together teams of global experts to create tailor-made solutions for client projects. Jonathan Humphries, Chairman and Owner of HoCoSo, and his direct team speciali- ze in the extended-stay hospitality market, the boutique sector, and resort developments in Europe, the Middle East and Africa (EMEA). We create innovative and future-oriented solutions for each of our clients across the following three elds of services:
- Product & Concept Creation, for both portfolio & individual asset developments.
- Strategic Project Scoping, Execution & Asset Management, with a focus on strategic business planning, partner selection, and market & nancial feasibility studies.
- Hospitality Education for companies and academic institutions, with a focus on course development, training and teaching innovation.