Why Hotel Groups are Launching Their Own Serviced Apartments
15th April 2024
Business & Insights
Hotels
Short-Lets
The hospitality industry is experiencing a shift. Travellers are increasingly seeking alternatives to traditional hotels, and serviced apartments are rising in popularity. These accommodations offer the space and flexibility of an apartment, combined with hotel-like amenities such as housekeeping and concierge services.
Traditionally focused on hotel stays, established hotel groups are recognising the potential of serviced apartments. There are several reasons why they're strategically entering this market, so let’s explore them.
The benefits of serviced apartments for hotel groups
Catering to diverse needs
Serviced apartments provide a more spacious environment with separate living areas and kitchens. This layout is ideal for families or longer stays, and the increased privacy allows guests to feel more like they're living in a home away from home.
Additionally, they cater to diverse needs with their flexibility. Whether guests require a workspace for remote work or simply a place to relax in a comfortable setting, the presence of a kitchen and living area offers a significant advantage.
Avoiding tourist-dense areas
Serviced apartments are often situated in trendy, non-touristy neighbourhoods. This allows guests to experience a more authentic, local vibe while still enjoying convenient access to the city.
Access to a broader range of traveller preferences
By offering serviced apartments alongside hotels, hospitality chains cater to a broader range of traveller preferences. This allows them to attract new customers and increase overall brand appeal.
A great example of a company doing this well right now is Wilde Aparthotels, who offer hotel rooms across European hotspots with access to kitchen and laundry areas.
Using existing infrastructure
Hotel groups can convert underutilised hotel space into serviced apartments, capitalising on existing infrastructure and expertise. This approach allows them to adapt to changing consumer preferences without significant investment in new properties.
Additionally, existing hotel loyalty programmes and brand recognition can be leveraged to attract guests to the new serviced apartment offerings. This creates a smoother transition for loyal customers seeking alternative accommodation options.
Operational expertise
Hotel groups already possess the operational expertise required to manage accommodation. This knowledge translates well to managing serviced apartments, allowing them to leverage existing systems and staff expertise.
The future of serviced apartments
The serviced apartment market is expected to continue growing, attracting both new entrants and established players in the hospitality industry. Hotel groups are well-positioned to capitalise on this trend by leveraging their existing infrastructure, brand recognition, and operational capabilities.
As traveller preferences continue to evolve, serviced apartments are likely to become a cornerstone of the hospitality landscape, offering a unique blend of comfort, flexibility, and value for money.
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