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Hotels must look out for the booming service apartment trend

PRABHASH BHATNAGAR

Service apartments are giving hotels a run for their money

Over the last 7 years, the global supply of serviced apartments has significantly increased.

According to Knight Frank’s 2016 Global Cities report, since 2010 the number of serviced apartments has grown by 80%. There are more than 750,000 service apartments worldwide with nearly 61% of them in the United Sates. The growth looks as if to continue in the coming years.

Service apartments are becoming a global hit because it provides more space and flexibility at either a similar or lesser tariff than what a guest would normally pay at a similar standard property.
For a family of four, a service apartment truly is a better option because many hotels won’t allow more than one child in their standard rooms. With a service apartment, the family can stay together but still have some privacy and also have place to prepare meals. It just becomes the better and more sensible option.

The surprising factor is that even business travellers are leaning towards serviced apartments as compared to hotels especially if they need to stay in a foreign city for more than a few days. Serviced apartments gives the traveller the choice on whether they would like to cook themselves or order in, they are not only dependant on eating out or room service. Having more space also gives a sense of freedom to the traveller.

Service Apartments are winning against hotels

Serviced apartments provide the complete solution to a guest; they can have the illusion of staying at a place like home with the services that a hotel provides. Full serviced apartments provide housekeeping, laundry services, dining options, many a times even a gym. Therefore at a lesser price, the guest can have the best of both worlds.

With the demand of serviced apartments growing exponentially, many hotel chains worldwide are offering both hotel rooms as well as serviced apartments to their guests so that they don’t lose out to the competition.

Globally service apartment operators such as The Ascott Limited and Oakwood Worldwide are aggressively expanding their presence in the serviced apartments sector due to the increased demand. Serviced Apartments may not have overtaken the hotel industry but they are definitely giving them a run for their money.

Service Apartments are winning against hotels

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