Serviced Apartments Guide 2017

The 2017 guide to

Serviced apartments

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WELCOME

The 2017 guide to

SERVICED APARTMENTS

The 2017 Guide to Serviced Apartments Welcome to The Business Travel Magazine’s fifth annual guide to serviced apartments, produced in partnership with the Association of Serviced Apartment Providers

WRITTEN BY Catherine Chetwynd EDITOR Andy Hoskins andy.hoskins@ thebusinesstravelmag.com PUBLISHER David Clare david.clare@ thebusinesstravelmag.com SENIOR SALES MANAGER Craig McQuinn craig.mcquinn@ thebusinesstravelmag.com

he serviced

T

Despite all the good news –

address these issues for the

apartment

and the sector’s unchanging

good of guests and suppliers

sector has been

USPs of space, flexibility and

alike and to promote the sector

described as

competitive rates – many of the

as a whole. We are delighted to

‘maturing’ for

same issues that have hindered

work with them in raising the

several years but it is perhaps

uptake of serviced apartments

sector’s profile among

evolving more now than ever.

among corporates continue to

corporate travel managers and

raise their head.

bookers as increasingly more

Among the evidence is the launch of several new brands

Among them are a lack of

discover the benefits of

from well-established serviced

consistency – just what can you

integrating serviced apartments

apartment operators and the

expect of a serviced apartment?

alongside hotels in their

rise of aparthotels. Both

– and the patchy presence of

accommodation programmes.

EDITORIAL DIRECTOR Steve Hartridge

concepts help providers widen

online bookability. And then

their appeal and win over new

there’s the sometimes blurred

Andy Hoskins, Editor

CREATIVE DIRECTOR Matt Bonner

demographics.

lines between agents and

The Business Travel Magazine

DESIGNER Monica Notarnicola PRODUCTION MANAGER Clare Hunter MANAGING DIRECTOR Martin Steady

The last 12 months has also seen serviced apartment supply

posed by new entrants and

grow by ten per cent, while

disruptors like Airbnb.

figures suggest over three-

Serviced Apartment Providers,

sampled serviced apartments.

has made it its mission to

CONTENTS THE 2017 GUIDE TO SERVICED APARTMENTS

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Images courtesy of suppliers as indicated and sourced from istockphoto.com and bigstockphoto.com

ASAP, the Association of

quarters of corporates have

The 2017 Guide to Serviced Apartments is brought to you

by BMI Publishing, producers of The Business Travel Magazine.

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operators and the challenges

04

Industry Overview The serviced apartment sector’s star is rising

08

Model Behaviour What to expect from serviced apartments

11

Agents, Operators & Alliances Unraveling just who offers what

04

15

Corporate Adoption Making the most of long-stay accommodation

08

19

Hotel Groups The global hotel groups’ apartment options

20

The Next Generation What next from this evolving sector?

24

Supplier Directory A selection of ASAP agents and operators

20

26

Data The serviced apartment sector in numbers

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THE 2017 GUIDE TO SERVICED APARTMENTS

3

INDUSTRY OVERVIEW

Growth and evolution Both supply and demand for serviced apartments is on the rise but the burgeoning sector nevertheless faces a series of challenges

“Serviced apartments often offer significant savings on hotel accommodation”

S

erviced

Account Manager for Citybase

living with the security and

Apartments, Chris Lyon. “The

have long

familiarity of a hotel experience

savings that can be achieved are

been used by

but when guests walk upstairs,

greater with an increased length

businesses

they get their own apartment.”

of stay (14-28 nights plus) with

Aparthotels also cater well to

reductions that are not usually

whose employees are on the road for more than five days or

requirements of travellers who

so, the threshold beyond which

need accommodation for longer

anyone in a hotel room might

periods and for groups.

require the freedom, flexibility

All this adds up to good duty

available in an equivalent hotel.

“And once corporate rates have been negotiated, guests enjoy continuous flat rates,

and space that a serviced

of care: travellers are safe,

whereas hotel tariffs will

apartment delivers.

secure and have a relaxed

fluctuate over busy periods”.

But with the increasing

environment to return to after

Also, serviced apartment

number of aparthotels now

a day’s work while rates are

accommodation is generally

entering the market, the profile

generally lower than hotels in

equipped and finished to a

of guests making use of

comparable areas.

higher standard than that of

serviced apartments is subtly changing.

“Serviced apartments often

an equivalent hotel.

offer significant savings on hotel accommodation, particularly

The flip side

hinder our progress in transient

when viewed with the additional

There are, however downsides.

travel go away with branded,

costs of food and beverage

It is not always clear what is

purpose-built aparthotels with

allowances and ancillary

included in the rate and that

a 24/7 concierge,” says Ben

expenditure such as hotel wifi

varies significantly according to

Harper, Sales Director for SACO.

and parking,” says Senior Key

supplier. And self-check-in, meet

“All the barriers that used to

4

“They offer the best of hotel

apartments

THE 2017 guide to serviced apartments

INDUSTRY OVERVIEW

lobbying programme and its

business travel but 18 months

Legal Think Tank Strategic

later, that figure had fallen by

Group is working with Ian

around 9%. Figures are also

Charman of Turner Morum and

down by 2.2% for project

will be submitting a written

workers and relocation (7.25%).

objection to the Valuations Office on behalf of members.

It is urging its members to do

In addition, just 47.4% of companies report that their usage for business travel is

the same. “Such rate rises could

increasing. McCrow concludes

put people out of business,”

that interest is not waning but

says ASAP’s Chief Executive,

that mature corporate

James Foice.

accommodation programmes routinely include serviced

Supply and demand

apartments and the sector is

Meanwhile, the market continues

now more secure in its niche.

to grow, which is reflected in lower occupancy. “With more

Corporate uptake

supply coming in and a relatively

Travel management company

cautious corporate market, there

Redfern says its clients spent

is definitely a level of anxiety,”

25% more on serviced

says SACO’s Ben Harper.

apartments between January

“However, this presents us with Pictured above: Roomspace Reigate; Right, from top: Leman Locke

by SACO; Staycity Heathrow; BridgeStreet

and greet or key collection are

an opportunity because we are

more labour-intensive for

a value proposition and serviced

customers than a manned

apartments tend to do quite

reception and are less reliable.

well in tricky economic

In addition, “There are challenges in distribution and

“There are challenges in distribution and visibility of serviced apartments via online booking channels”

situations,” he adds.

“In the next 12 months, we

visibility of serviced apartments

will see strong regional growth,

via online booking channels,

with hotels and serviced

with 30% to 40% of serviced

apartments increasing by

apartments still not easily

around 10% in Manchester and

available online,” says Lyon.

7% in Birmingham, Bristol,

“And cancellation policies often

Edinburgh and Belfast, as more

differ as you go from supplier to

organisations focus their

supplier,” he adds.

activities on markets outside

Industry organisation ASAP, the Association of Serviced Apartment Providers, aims to

London,” he says, suggesting demand will match supply.

Overall, according to Chief

promote the sector to potential

Executive of The Apartment

and existing consumers,

Service, Charles McCrow,

operators and agents, travellers

writing in the Global Serviced

and anyone who has an interest

Apartments Industry Report

in the sector. Its improved

(GSAIR) 2016/17, “Serviced

website, launched in May 2016,

apartments continue to be

plays an important part in that,

adopted into corporate travel

as does ASAP’s information

and mobility programmes,

portal, The Hub.

although our research shows

The association is taking

that while usage of apartments

action regarding government

by existing clients is still

proposals to change how

growing, the rate of adoption

business rates are evaluated,

could be slowing down.”

which in some cases, will cause

and September 2016 than the

At the time of the 2015/16

rates to increase by 80%.

report, 74% of corporates were

And it is supporting the BHA’s

using serviced apartments for

THE 2017 guide to serviced apartments

5

INDUSTRY OVERVIEW

same period the previous year, and that room nights booked over the same period have risen by 33%.

“Temporary relocation of employees is becoming increasingly common practice and we’re seeing longer stays and increased spend in the serviced apartment sector,” says Redfern’s Business Development Director, Kate Wimpeney.

“There has been a step-change in the sector, with big name hotel brands exploring ways to enter this growing market.

The whole uplift is driving savings for our customers which

restricted supply in required

is excellent news.”

locations the number one problem for 65.4% of

Service expectations

respondents, although that is

Not surprisingly, as awareness of

down 7% against 2015/16.

serviced apartments has grown, levels of expectation among

a clear procurement process,

corporate buyers, travellers and

including tortuous booking

TMCs also increase. Free wifi

methods; inconsistent product

access is the number one

quality, services and amenities;

requirement (83.08). Although

and lack of recognised brands.

much is made of the 24/7

Pictured below: Skyline Carlow House; Right, centre: Premier Suites Plus; Right, bottom: Marlin Apartments

that by 2020 there will be a 50%

ranked only seventh (21.2%).

increase in overseas assignments

Obstacles to greater corporate

M

Y

CM

MY

CY

Nonetheless, PwC predicts

reception in aparthotels, it was

use remain unchanged, with

C

Others barriers are a lack of

CMY

K

undertaken, which augurs well for the sector, as does the continued rise in spending on business travel. The Global Business Travel Association estimates $1.25trillion was spent on corporate travel worldwide in 2015, up 6.5% on 2014. growing interest amongst

Maturing market

institutional funds in the sector,”

Serviced apartment supply is

states Charles McCrow.

growing in line with demand.

sign of a maturing market.

GSAIR, inventory has more than

McCrow adds: “We’ve been

doubled to 826,759 units

tracking the growth of the

worldwide, which represents a

sector since our first GSAIR in

hike of 10.5% in the past 18

2008. Back then, we estimated

months alone.

there were 401,997 apartments

Paradoxically, this is despite

6

THE 2017 guide to serviced apartments

This interest says it all: it is a

Since 2008, the year of the first

in 6,722 locations. During the

the fact that operators are

intervening eight-year period

having trouble obtaining finance

supply has more than doubled.

and finding suitable real estate,

Without exception, supply has

“although the former is

increased in every region

gradually being alleviated by

year-on-year.” ↸

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MODEL BEHAVIOUR

Dealing in diversity Serviced apartments is a catch-all phrase that covers a wide range of products and operating models, so just what can you expect once you open the door?

“It is difficult to achieve absolute consistency when there are so many configurations and variations of serviced apartment”

A

s highlighted in

fitness room, free breakfast or,

the introduction

increasingly, a café/restaurant or

been crafted by HVS in an

to this supple-

deli in a communal area.

attempt to standardise

ment, product inconsistency is

terminology in the industry.

is typically residential

Here, aparthotels range from

still a drawback in the sector

apartments upgraded for stays

budget to luxury, have fixed

and there are several models of

of 30 days or more and sold

inventory and staff employed on

serviced apartment, each

with furnishings, weekly

site, with manned reception and

offering different product and

cleaning, utility charges, local

services such as F&B on property

service, and are appropriate for

municipal taxes, phone/wifi/TV,

or nearby. They fall under C1

various lengths of stay.

and guest services.

planning (short let) and provide

Extended stay hotels, also

This category falls into two

space to work, eat and sleep.

known as aparthotels, are

types: apartments rented and

largely studios and one-bed

maintained by the operator;

self-contained apartments in a

apartments, with a few two-bed

and those rented for a particular

residential building that is

versions, largely in urban

requirement and handed back to

managed by an individual or

locations and offering en-suite

the owner when that finishes.

legal body. It is better suited to

bathrooms, fitted kitchen,

A third type, condo-hotels, is

Corporate housing comprises

longer stays, has in-room

lounge/dining area, desk and

largely found in South America

laundry (washing machine); and

chair, internet access and

and comprises hotels with

24-hour service contact.

telephone line.

condominium units that are privately owned and can be

Product confidence

(some 24/7), shared laundry

rented out and managed by the

Confidence in brands helps the

facilities and sometimes a

hotel just like other rooms.

sector grow: “Serviced

Properties have receptions

8

Corporate housing, meanwhile,

Further definition has also

THE 2017 guide to serviced apartments

MODEL BEHAVIOUR

barometer for clients. The

has expanded to 170 in 13

association has also made great

countries, including the UK,

strides in rolling out its scheme

US, Canada, Africa, Belgium,

on an international level with

the Netherlands, Norway,

the assistance of the CHPA.”

Switzerland and Luxembourg.

ASAP’s James Foice says,

Kim Ashmore has been

not-for-profit trade body is to

appointed to the new position

ensure that the consumer has

of Business Development

the confidence to book serviced

Consultant at ASAP.

apartments anywhere around the world.”

He continues, “The corner-

Consistent standards do not mean bland accommodation: “The critical role for us is to

stone of this is our Quality

benchmark quality standards

Accreditation Programme, the

and health and safety standards

leading global programme for

through our accreditation

apartments are a relatively new

the sector, which ensures we

programme, to provide clear

accommodation concept in

continue to drive up, maintain

expectations of the product, so

EMEA, unlike in the US, where

and inform about standards

that consumer expectations are

they are well established,” says

around bookings, facilities and

met, if not exceeded,” says

Sales Director EMEA for Skyline

health and safety.”

Foice. “But equally it is

Worldwide, Lorna Keen. “In

The programme has been

EMEA, there are many more

extended to agents, with four

discourage entrepreneurs who

new brands emerging that are

accredited and more to come.

are introducing great innovation

attracting attention.”

The association’s membership

in our sector.” ↸

Branding is taking off in a big way in the ever-growing number Pictured top: CitySuites Manchester; Above: Leman Locke by SACO

And to further this growth,

“Our key objective as a

of aparthotels, with the launch of Leman Locke by SACO, which opened in London in October.

Edinburgh follows in 2017 and then Amsterdam and Dublin.

Guest appearances from Masterchef finalists Billy Wright and Jack Layer will bring a culinary programme to Locke

by SACO, including supper clubs and masterclasses.

And BridgeStreet’s Mode will take up residence in retro-fitted buildings in Washington DC and Paris next year, with five planned for California and up to 15 in India by 2022.

This variety does not aid consistency: “It is difficult to achieve absolute consistency when there are so many configurations and variations of serviced apartment,” says SilverDoor’s Caroline Saunders.

“In terms of consistency of quality and health and safety, ASAP’s Quality Accreditation scheme is proving a useful

important that we do not

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SERVICED APARTMENT EXPERIENCES

AGENTS & ALLIANCES

Blurred lines Agents, operators and alliances all fulfil different needs in the industry, but the multiple roles played by some companies can cause confusion

“Transparency is crucial and any provider who is selling the inventory of third parties should be making that clear to its clients”

he debate

operator. Maintaining positive

ability to manage accommo-

regarding the

and collaborative relationships

dation needs outside fixed

roles of agents,

with operators is crucial to fulfil

inventory, should requirements

operators

accommodation requirements

change,” says Morgan.

and hybrids

and something which SilverDoor

“As with agents, hybrids

rumbles on but the truth is, it is

and Citybase take seriously,” says

become dependent on third

a co-dependent relationship.

Citybase Apartments’ Partner

party operators when sourcing

Relations Manager Kurtis Murphy.

outside their own stock,” says

T

“Agents offer a one-stop shop and critically, one point of

Operators own or manage

Morgan. However, transparency

contact for corporates and the

properties and deal direct with

is crucial and any provider who

traveller,” says Commercial

buyers, who benefit from local

is selling the inventory of third

Director for Clarendon Serviced

market knowledge, which is

parties should be making that

Apartments, Peter Morgan.

particularly valuable in a

clear to its clients.

“Agents access all major

destination a buyer does not

UBS’s main requirement is

operators in the marketplace

know. In addition, there are no

in London, Zurich, Paris and

but their success in managing

referral fees and accountability

Frankfurt, where BridgeStreet

corporate expectations is largely

for the welfare and comfort of

has good coverage. “If they have

dependent on having trusted

the employee during a stay is

to use a partner, they clearly

and reliable relationships with

with the operator and ultimate

communicate that to me or to

operators, who control the

service provider.

the traveller. They use only

inventory,” says Morgan.

Hybrid companies fulfil both

partner companies that conform

Similarly, “Agents occupy

roles. “Hybrids can offer greater

to the standards they have set

an interesting middle ground

assurance to buyers – guaranteed

out,” says Group Corporate

between the guest and the

inventory and rates, with the

Services, Global Travel

THE 2017 guide to serviced apartments

11

AGENTS & ALLIANCES

company’s relationship with

easily accessible to clients and

Airbnb and Onefinestay.

providing a wider distribution

“Consumers are looking for different types of accommo-

alliance are the use of robust

want to deliver a B2B version of

systems, dedicated trust

that, a wide range of accommo-

operators and transparent

dation – apartments, houses,

processes that are enhanced

cranes in Amsterdam – where

with training, education and best

buyers get all the security,

practice alignment of members

assurances and duty of care you

and partners,” says Managing

get with a professional serviced

Director of Group Commercial

apartments operator.

Sales for The Apartment Service, Jo Layton, in the company’s

support corporates are looking

GSAIR report. The TAS Alliance

for – consolidated billing,

now numbers more than 55,000

consistent reporting, account

apartments in 160 countries.

management and financial

Similarly, SilverDoor’s purchase

services, so that they do not

of Citybase means the Orbital

have to pay by credit card at the

Partnership is to be given a new

time of booking, including a

lease of life. The platform allows

booking platform that can be

operators and property partners

quite common in the industry to

completed online in real time or

to source inventory to meet

source accommodation from the

by traditional reservations by

client requirement where they

market and we have mitigated

telephone or email.

have none, giving free access to

Management, Kevin Carr. “It is

that as far as we can.”

But if hybrid service providers

“It is about widening our proposition to clients, while

the global SilverDoor Citybase network of 160,000 apartments.

are contentious, Airbnb and

providing a layer of assurance

other disruptors really rattle

from a governance perspective,”

and book with instant availability

cages. They are gaining ground

says Hinds.

and rates, and view and amend

with travellers, and relationships

BridgeStreet is listing its own

“Operators can search online

current bookings,” says Stuart

with the serviced apartments

properties as well as promoting

Winstone, Commercial Director

industry vary from the cautious

Airbnb options, although Hinds

for both companies.

to fully embedded.

admits the balance is currently in

SACO is testing Airbnb in some

favour of BridgeStreet’s listings

regional UK markets but, “The

rather than clients’ looking for

reservation process for facilitating

Airbnb inventory.

enquiries is really cumbersome

The company is also integrating

and resource heavy,” says the

Onefinestay properties in five or

company’s Ben Harper.

six cities into its system, which

And compliance with duty of care and traveller welfare requirements is difficult when

was scheduled to go live in November 2016.

Elsewhere, The Ascott has

Airbnb is a technology facilitator

invested in China’s equivalent

rather than a provider, which is

of Airbnb, Tujia.com, with which

why many buyers are reluctant

it will operate and franchise

for travellers to use it.

serviced apartments, and

However, BridgeStreet takes another view. “We are

12

“Key features of a successful

dation, not just hotels, and we

“BridgeStreet provides all the

Pictured above: Vision Apartments; Below: Cotels Luton; BridgeStreet

channel for partners.

Oakwood in Asia sells on Airbnb.

A relationship of a less

increasingly trying to create a

inflammatory nature is the TAS

marketplace for alternative

Alliance, launched in 2014 to

accommodation and serviced

unite independently owned and

apartments fit into that

operated serviced apartments

description,” says Managing

on one platform, making

Director Shaun Hinds of the

independent accommodation

THE 2017 guide to serviced apartments

AGENTS & ALLIANCES

“Orbital Partnership generates revenue for this business and

“A property not affiliated with a major brand will face the challenge of establishing its own system and channels, a process that is difficult, expensive and time consuming”

Dutch company Short Stay Group and esa in the UK.

for the property partners who

These relationships make

sign up to it, but it needs a bit

sense because they broaden

of tweaking and it will get a

the offering available to travel

SilverDoor relaunch,” says

buyers under a well-known and

SilverDoor Managing Director,

secure brand umbrella.

Marcus Angell.

“We will be encouraging

“The affiliation of individual properties with major brands

serviced apartment operators

means that customers have

who do not have the volume to

an easy and well understood

provide an agent service, to use

method to book and pay,” says

Orbital Partnership and we will

Director of Cycas Hospitality,

make that part of our commercial

John Wagner.

agreement. It will be free. If an

“A property not affiliated with

agent has a corporate client with

a major brand will face the

business in Hull or Glasgow who

challenge of establishing its own

wants to go to London, Cardiff

system and channels, a process

or Southampton, we’ll do it

that is difficult, expensive and

through Orbital Partnership.”

time consuming,” says Wagner.

Less formal and smaller

“It is this distribution technology

alliances also exist such as

that justifies the costs associated

BridgeStreet’s relationship with

with affiliation with a brand.” ↸

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CORPORATE ADOPTION

Hearts and minds Business travellers are increasingly making use of serviced apartments for long stays, so how are providers ensuring those figures continue the upward trend?

“Serviced apartments can enhance an accommodation programme and this is where the education needs to start”

W

orking with

Global Business Travel Manager

Go Native’s client needs vary

serviced

for GSMA, Leigh Howell, buys 40

from three nights or three

apartment

to 50 nights a month. “We do

months to three years. “Our

suppliers is

secure a good rate for our

negotiation is based on length of

similar to

business and I recognise that

stay and volume and discounts

working with hoteliers in that

more volume equals lower

of between 10 per cent and 15

the more business you can

negotiated rates but you have to

per cent are applied for stays in

guarantee, the better the rates

be realistic,” she says.

excess of seven days,” says

they can offer you.

In addition, for stays in excess

“We don’t work on traditional volume-based business as hotels

managing director Shaun Prime.

“Typically, stays of 28 days or

of 28 days, VAT goes down from

do,” says SACO’s Ben Harper.

more attract discounts in excess

20% to 4% from the 29th night.

“We look at the opportunity for

of 20% and even deeper

And consolidating business also

new business and appraise at all

discounts apply as length of stay

brings gains. For example, GSMA

levels. Clearly, volume does drive

increases. And seasonality

uses SACO and BridgeStreet;

buying power and economies of

obviously affects our sector, so

PwC uses Go Native and SACO.

scale but we don’t put a finite

we remain flexible with all our

number on it. There’s no formula.”

clients to ensure we mould our

Travel management company

supply to meet their demand.”

“If you spread your business across several providers, they are less likely to discuss preferred

Redfern says its clients’ spend on

rates because you will not be

serviced apartments increased

a programme, it is important that

able to give them enough

by 25% between January and

buyers communicate with

business,” says Head of Hotels

September 2016, based on the

travellers. “More can be done

and Venues Programme for PwC,

same period last year, showing

by buyers to understand their

Sam van Leeuwen.

growth from corporate use.

travellers’ requirements and to

To get best advantage from

THE 2017 guide to serviced apartments

15

CORPORATE ADOPTION

“Purchasing a serviced apartment

for serviced apartments that is

is increasing in complexity.”

more cost-effective than GDS.

Marrying up length of stay with

Cheval Residences uses an

type of property is partly a

Avvio booking platform with

matter of practicalities. Having

which it credits the company’s

two people in a two-bedroom

anticipated 20% growth in 2016;

apartment with sitting room and

and in response to client

kitchen for the duration of a

demand, Go Native is developing

three-month project would

a client portal which will allow

work well, whereas smaller

them to research and book in

accommodation might not.

real time, with automatic billing.

Average length of stay at

Finally, as Shaun Hinds put it,

SACO properties is 14 nights in

BridgeStreet is moving from the

aparthotels and 30 in serviced

1960s to 2017 in one leap: its

apartments, though it does

new website went live in October

depend on the location.

2016 and is optimised for all devices. It will be followed by a

Pictured: Staycity Birmingham; Previous page: Mercedes-Benz Living @ Fraser

Online inroads

live booking platform that shows

Technology continues to inch

content from BridgeStreet’s

towards online booking: around

entire supply chain: serviced

72% of serviced apartment

apartments, Onefinestay and

inventory is now bookable online

Airbnb. User log-in will give

accommodation available to

and that is up nearly 10% on the

corporate clients access to

them,” says Sales Director for

previous GSAIR survey.

properties in their programme.

educate them in the choices of

Myco by SACO is a tool for

“It will be interesting to see

apartments can enhance an

corporate travel bookers that

how many use it because many

accommodation programme and

provides SACO’s inventory in

still have a manual, offline

this is where the education

a tailor-made portal into which

system,” says Hinds.

needs to start.”

the global supply chain will

Skyline, Lorna Keen. “Serviced

Although The Ascott, Cheval

eventually be integrated. Still

Residences, Marlin and Go Native

a company’s needs, these can be

to come are live reporting,

all successfully have stock on

sourced elsewhere and SLAs will

enquiry tracking, management

GDS, the serviced apartments

help ensure accommodation is

information and more.

model does not lend itself to

Where a supplier cannot meet

up to standard.

Clarendon’s apartment

booking on GDS. It can cope

management system provides

with two nights in an extended

understand who they are buying

real-time booking on client

stay property but if a company

from, who actually operates the

portals and via OTAs. Skyline

wants to bring in trainees in

apartments and how many layers

properties can be booked via its

groups of 20 for five nights, or if

of commissions are included in

website, on request and on the

a buyer wants to extend the stay

the final rate,” says Jo Layton of

GDS and, in Brazil, the company

of travellers from one month to

The Apartment Service.

is piloting a distribution system

two, GDS cannot do the job. ↸

“The challenge for a buyer is to

CORPORATE CASE STUDY A travel manager at an investment bank explains how they use serviced apartments.

“We buy around 6,000 nights a year from five suppliers and their rates have to be below those of our cheapest hotel in the UK. “Most of our bookings are in London because 90% of our usage comes from India, usually back office staff coming to work on projects. Their average stay is 30 days and our policy states for

16

THE 2017 guide to serviced apartments

more than seven days they should be in apartments.

“Apartments are on our intranet and managed through our TMC. Bookers complete a form online and that goes through the agent, who manages it and books the apartments by email or phone.

“Our apartments programme runs from July 1 to the end of June, whereas the hotel programme runs from April 1 until the end of March, which

gives us the time to make sure we have got the right properties and to negotiate.

“You can’t book most serviced apartments through GDS so it is a different way of negotiating.

The terms and conditions are different and we do not do the RFP through Lanyon, it is emailed to providers. We invest the same amount of time in the serviced apartments programme as we do in hotels.”

+44 (0) 20 7368 8801

HOTEL GROUPS

Moving in Experts in short-stay business, many of the world’s major hotel groups have dedicated long-stay brands of their own that are making an impression build guest preference.” says

product. We have continued to

Mike Greenup, Vice President of

improve the free breakfast offer

Brand Management for the

as our guests told us they value

Holiday Inn brand family,

it and would pay a little more for

Crowne Plaza & Staybridge

the room if the breakfast was

Suites Europe.

improved,” says Wagner. He

“For example, the laundry

designer aparthotel trend for

reception are open 24/7, and we

restaurant/deli-café services.

offer free wifi, daily breakfast

Aparthotels Adagio, however,

buffet and an all-day pantry

will be responding to that trend

convenience store.”

and has a strategy to evolve the

Additionally, staff members mix with guests at The Social,

Pictured: IHG's Staybridge Suites; Below: Accor's Adagio brand

T

does not expect to match the

room, fitness room and

brand in the next few years.

“We will be changing the

providing informal food and

design of the common areas

drink in a public area at the hotel.

– how lively they are – to

he aparthotel

The brand’s global pipeline is 128

enhance the strong relationship

model may

hotels, of which five are in the

between our customers and our

be taking off

UK and Ireland.

teams, so that they have more

exponentially,

In the Americas, Hilton

contact and we provide more

Worldwide is gathering its

local knowledge,” says Deputy

of the lively, well designed

extended stay brands Embassy

CEO, Karim Malak.

public spaces and food offerings,

Suites by Hilton, Homewood

but some hotel groups’

Suites by Hilton and Home2

on Germany and the UK, where

extended stay brands have been

Suites by Hilton under the

properties in Liverpool and

here for more than a decade.

banner All Suites Collection; and

Birmingham will be followed by

Carlson Rezidor has succumbed

Edinburgh (2017), with

opened in London’s Docklands in

to the pull of extended stay and

Manchester and London among

2004; IHG’s Staybridge Suites

now has 30 properties, mostly in

others on the Europe wish-list.

was launched in Liverpool in

the Middle East, with none in the

2008, followed by Newcastle,

UK nor currently planned.

with much made

Marriott Executive Suites

Stratford and most recently

The European pipeline focuses

Accor will also be looking for opportunities to bring a version of Adagio Aparthotel Premium,

Vauxhall; and Accor’s first

Providing what’s needed

recently launched in Dubai, to

Adagio property in the UK set up

Cycas Hospitality runs Marriott

Paris and London but there is

shop in Liverpool in 2013.

and IHG properties under

nothing concrete yet. ↸

Extended stay hotels provide

franchise, aiming to attract the

accommodation in self-catering

same customer. “The brands

suites but do not generally offer

deliver people to the property

ancillary services such as bars,

but it is the operator’s skill that

restaurants and porterage.

make them successful and

Guests who use them do so because they need a space to live and work. “So it is crucial we

brings people back,” says Director, John Wagner.

Staybridge Suites has evolved

create a sense of community

since 2008. “We have enhanced

within our hotels, driven by

the evening reception and made

complimentary services to help

it even more of a feature of our

THE 2017 guide to serviced apartments

19

the next generation

Forward thinking As the serviced apartment sector continues to mature, expect new brands, new ideas and new partnerships as the major players bid to set themselves apart

“Partnerships seem to be the most likely way for serviced apartment players to see good growth”

I

n as dynamic

high-end Mayfair and Edinburgh

expense management, traveller

a sector as

properties, and The Ascott’s

tracking and more.

serviced

Crest Collection gathers

apartments,

together disparate characters

most likely way for serviced

the established

under one name, following the

apartment players to see good

hotel industry model.

growth because flexibility is the

players have to continually reinvent themselves in order to remain at the top.

driver of the business model,”

has reached Singapore while

says Miles Agbanrin, country

Oakwood Asia Pacific has added

research analyst for Euromonitor

is currently in aparthotels, where

Oakwood Studios to its Premier,

International.

companies are taking over larger

Residence and Apartment brands.

The greatest area of innovation

blocks to deliver a mix of

Large lobbies in which guests

Cheval Residences is giving

can work, relax, eat and drink are

business – transient, medium

guests smartphones with free

also becoming the norm. “We are

stay and long-stay relocation

calls within the UK and to 11

seeing a transformation to edgy

guests. Go Native’s properties on

other countries, plus 3G and 4G

interiors and creative communal

London’s South Bank and in

connectivity; as are Marlin (in ten

space designs which appeal to

Croydon conform, as does

countries) and City Apartments

millennials,” says Commercial

Leman Locke by SACO.

(worldwide) – all in partnership

Director for Clarendon Serviced

with Handy phone.

Apartments, Peter Morgan.

In addition, branding is making its mark, with Locke by SACO

20

Mercedes-Benz Living @ Fraser

“Partnerships seem to be the

Other relationships include

Locke and Go Native have

and BridgeStreet’s Mode joining

those partnering with office

gone down that route, as have

the fray. Relative newcomer

space providers (Marlin and

Zoku and Staycity in Heathrow,

Apple Apartments launched

Select Apartments), while

Birmingham, York and all further

Apple Exclusive to embrace its

SilverDoor is considering

launches. The latter company’s

THE 2017 guide to serviced apartments

Go Native.

We’re Growing!

With a fantastic range of properties from Kensington to Hoxton, we're London’s largest provider of Serviced Apartments, and with further openings in London and major towns and cities across the UK, we’re growing fast.

Our product is as strong as ever, our service is second to none, and with the industry’s leading technology, our apartments are as simple to book as a hotel.

Why not talk to a member of our team, and join us on our journey to becoming the UK’s first choice for Serviced Apartments.

gonative.com |

020 7221 2028

the next generation

has exceeded its five-year goal of managing 50 apartments and now manages 58.

Elsewhere outside the UK this year, Frasers opened in Geneva (67 units) and Istanbul (80); The Ascott took on properties in Hyderabad, Bangalore and Sri City, India; Zoku launched its first property in Amsterdam, with two in Paris to follow; Dutch brand Yays opened 129 units in three buildings and has 400 more signed this year (2016); B-Aparthotels opened in The Hague (60); and BBF added 20 units in Brussels. Staycity will expand in France in 2017

UK apartment additions London 2016 OPENINGS Appetite for accommodation in London remains undiminished and in 2016 the following opened for business, among others: Flying Butler in Victoria and Richmond; Staycity extended its Heathrow aparthotel (125); LAK Serviced Apartments opened an aparthotel in South Kensington (24); Apple in Kew and Park Lane; SACO Cannon Street (77); Lamington UK in Hammersmith (16); Skyline in Mornington Crescent (50) and Canary Wharf; Oakwood in Canary Wharf, Kensington and Fitzrovia; Leman Locke by SACO (168); the squa.re at Canary Wharf and the City; Roomspace, Kew; and Go Native, Stamford Street (59).

opening in Marseille (108) and Lyon (144); BridgeStreet’s Mode takes up residence in Paris (47) Pictured: Vision Apartments

Covent Garden property

and Edinburgh (82) in 2018; and

premium brand with higher spec

Premier Suites is looking at 12

fittings and probably service

locations in the next three years,

levels too, with a view to upping

including Rotterdam (2017) and

the ante in city centres where

Amsterdam (2019). Dublin and

the core Staycity model may

Switzerland are cities that

have difficulty competing.

repeatedly come up as being

Food is also playing a growing role, with nourishment available

short on apartment supply.

SilverDoor, meanwhile,

in varying degrees at Go Native’s

forecasts considerable growth in

Croydon property, Staycity in

Asia. “We have had a number of

Birmingham and Heathrow,

clients request that we establish

Marlin’s aparthotel in Waterloo,

a physical presence in the APAC

Leman Locke and BridgeStreet’s

region and in October 2016, we

Mode brand. Staying Cool’s

launched SilverDoor Asia in

plans for expansion include

Singapore,” says Head of

food that will be provided via

Marketing, Caroline Saunders.

concessions such as Pret or Eat. In terms of global growth, three

And recently announced is the appointment of Cycas

operators are planning significant

Hospitality by Starwood Capital

expansion: The Ascott will double

to run the former Think extended

in size to 80,000 units by 2020

stay properties in Earls Court,

and Frasers Hospitality will add

London Bridge, Bermondsey and

9,000 units to reach 30,000 by

Tower Bridge in London. They

2019; and Oakwood is pro-

are undergoing comprehensive

gressing with plans to triple the

refurbishment and will be ready

number of its branded properties.

mid-2017. In addition, having

In the UK, Go Native is

22

and Washington (50) in 2017,

(under construction) will be a

agreed heads of terms with

doubling in size to 3,000

Slough Urban Renewal (SUR),

apartments by 2017, opening in

Cycas will operate a dual-

Manchester, Bristol, Newcastle,

branded Residence Inn (92)/

Glasgow and Reading; and in

Moxy (144) property on the site

less than three years, UrbanStay

of the former Central Library. ↸

THE 2017 guide to serviced apartments

London 2017 ANd beyond Among new suppliers opening properties in 2017 are Marlin in Waterloo (238); Roomzzz in Stratford (87); Staycity in Covent Garden (106); Grange Hotels in Tower Bridge (273); Go Native in Bear Gardens (75); and in 2018, Lamington in Chiswick (78); and in 2019, Citadines in Islington (108); and Staybridge Suites at Heathrow (190).

Rest of the UK There is also much activity across the rest of the UK. Premier Suites opened in Glasgow (45) and Reading (41) in 2016; Fountain Court in Edinburgh (20); Apple in Liverpool, Edinburgh and Newcastle; House of Fisher in Newbury (22); esa in Reading (9) and Newbury (23); Cotels in Luton (22); SACO in Bath (9); Staycity in Birmingham (170) and York (190); Roomspace in Reigate; and BridgeStreet has taken Broadway Residences in Birmingham.

In 2017, CitySuites launches in Manchester (237); Lamington in Southampton (71); Staycity in Liverpool (202) and Manchester (182); Locke by SACO in Edinburgh; Cotels in Milton Keynes (12); Eliot Group in Liverpool (116); Lateral City in Edinburgh (50) and in 2019, Glasgow (43); Apple in Edinburgh (21); and BridgeStreet’s first Stüdyo opens in Paddington (21), followed by Edinburgh (80) in 2018. Further Stüdyos will follow in areas where there are tech hubs such as Shoreditch, London.

(Unit numbers subject to change)

One agency, 7 global offices

New York London Lisbon Madrid Barcelona Frankfurt Singapore

The Apartment Service is perfectly placed to provide the most comprehensive, connected, serviced apartment programmes across the globe We are renowned for successfully handling some of the most challenging accommodation needs, in order to understand how we can help handle yours, contact our experienced teams in any of our seven offices, we are ready to take your call +44 (0) 20 8944 3612 info@apartmentservice.com

www.apartmentservice.com

SUPPLIER LISTINGS

Who does what Find out more about the serviced apartment industry’s operators and agents that have supported The 2017 Guide to Serviced Apartments

The Apartment Service

Arlington House Apartments

apartmentservice.com Tel: +44 (0)20 8944 1444

arlingtonhouse.co.uk Tel: +44 (0)20 7629 0021

The Apartment Service, one agency with seven global offices, perfectly placed to provide the most comprehensive, connected serviced apartment programmes across the globe.

Arlington House offers serviced residences in a leafy environment in the very heart of the Exclusive and lively Mayfair, St James’s area.

Clarendon Serviced Apartments

Cotels Serviced Apartments

The Edinburgh Collection

Frasers Hospitality

cotels.co.uk Tel: +44 (0)1908 802853

theedinburghcollection.com Tel: +44 (0)131 560 2050

frasershospitality.com Tel: +44 (0)20 7341 5599

Established in 1997, we are an awardwinning provider in Milton Keynes, Northampton and Luton. Recognised for our efficiency and friendliness, premium service is our priority!

The Edinburgh Collection has 60 serviced apartments in a choice of two locations in Edinburgh, with free wifi, parking, 24-hour reception and daily servicing.

Frasers Hospitality Pte Ltd is a leading provider of premium serviced apartments, hotel residences and boutique hotels with 139 properties across 80 gateway cities.

Go Native Ltd

Mansley Serviced Apartments

Marlin Apartments

Monarch House

gonative.com Tel: +44 (0)20 7221 2028

bymansley.com Tel: +44 (0)800 304 7160

marlinapartments.com Tel: +44 (0)207 378 4840

monarchhouse.co.uk Tel: +44 (0)20 7368 8801

Founded in 1997, Go Native is an award-winning serviced apartment provider. Delivering first-rate, flexible accommodation solutions and exceptional service to our clients and partners alike.

Apartments with style and character offering housekeeping and on-site reception in four outstanding locations including London, Edinburgh and Inverness. Studios to four bedrooms.

Marlin is the largest owner-operator of serviced apartments in London, offering over 700 apartments across prime business locations with complimentary Wi-Fi, 24/7 concierge and fullyequipped kitchens.

Monarch House serviced apartments in Kensington are a perfect home from home. Our 40 exclusive apartments range from one to four bedrooms and are maintained to the highest standard.

clarendonlondon.com Tel: +44 (0)1784 489 200 Corporate focused and all about London!

Choose from Marylebone, Covent Garden, Soho, the City and Canary Wharf, then there’s Hammersmith, Kew Gardens and Richmond Park.

24

THE 2017 GUIDE TO SERVICED APARTMENTS

BridgeStreet Global Hospitality bridgestreet.com Tel: +44 (0)20 7792 2222 BridgeStreet Global Hospitality – comprised of six unique brands – is the leading global hospitality solution offering serviced apartment experiences for travellers seeking an alternative to typical hotel accommodation.

City Stay Apartments citystayaparts.com Tel: +44 (0)1908 664516 Providing great customer service in stylish serviced apartments in Milton Keynes and Bedford. Complimentary wifi, parking and Sky TV! The cost effective homely stay for the corporate and leisure traveller.

data

Source: STR Global

Vital statistics The serviced apartment sector in numbers

Industry performance January-September 2016 Serviced apartment occupancy UK-wide 79.8% (-2.2% year-on-year) Serviced apartment occupancy in London 80.2% (-3.3% year-on-year)

What corporates want from a serviced apartment

Serviced apartment occupancy rest of UK 79.3% (-0.7% year-on-year) Connectivity

Single occupancy

Family accommodation

Shared occupancy

Average daily rate UK-wide £137.59 (-0.1% year-on-year) Average daily rate in London £179.59 (+1.5% year-on-year)

Top obstacles to greater corporate use of serviced apartments

In-house services

Amenities

Staffed reception

Shortage in key locations

Inconsistent services

Lack of procurement process

Lack of recognised brands

Booking can take too long

Some people don’t like them

Average daily rate rest of UK £93.54 (+4% year-on-year)

Pre-trip assessment

72%

Percentage of serviced apartments bookable online

2016-2017

63% 2015-2016

Source: The Global Serviced Apartments Industry Report 2016/17. Download the full report at www.apartmentservice.com/gsair

SAMPLE RATES IN European CITIES (¤) (All rates in Euros)

Amsterdam YOY +/- Brussels YOY +/- Frankfurt YOY +/- London YOY +/- Paris

YOY +/-

STUDIO APARTMENT 1-6 nights (nightly rate)

145

+7%

140

+17%

130

-4%

245

-3%

190

+9%

7 nights+ (weekly rate)

870

+3%

810

+10%

835

-1%

1,548

-3%

1,100

+10%

1 month+ (monthly rate)

3,510

+5%

3,300

+4%

3,500

-1%

5,393

-2%

3,640

+1%

3 months+ (monthly rate)

3,200

+3%

3,100

+4%

3,000

-5%

5,032

-3%

3,450

+2%

1-6 nights (nightly rate)

210

+5%

210

+14%

200

-3%

342

-5%

275

+7%

7 nights+ (weekly rate)

1,325

+6%

1,290

+17%

1,100

-2%

2,322

-3%

1,750

+8%

1 month+ (monthly rate)

5,000

+6%

4,300

+4%

4,000

-5%

7,612

-1%

6,000

+2%

3 months+ (monthly rate)

4,600

+5%

4,100

+3%

3,800

-3%

6,903

-1%

5,750

+3%

1-6 nights (nightly rate)

250

+6%

260

+16%

250

-4%

413

-7%

435

+5%

7 nights+ (weekly rate)

1,620

+3%

1,475

+6%

1,475

-2%

2,774

-7%

2,720

+7%

1 month+ (monthly rate)

5,500

+4%

6,100

+9%

5,500

0%

9,677

-4%

9,850

+4%

3 months+ (monthly rate)

5,300

+3%

5,700

+6%

5,000

-5%

9,032

-6%

8,550

+3%

ONE-BEDROOM APARTMENT

TWO-BEDROOM APARTMENT

Source: The Global Serviced Apartments Industry Report 2016/17. Download the full report at www.apartmentservice.com/gsair Disclaimer: Rates are average rates and may vary by location, time of year, regional promotions and specific lengths of stay. Rates quoted are based on an average four-star extended stay property and exclude taxes.

26

THE 2017 guide to serviced apartments