Demand for serviced apartments have gone up dramatically during the last few years in the global real estate market. Experts predict this demand is mirroring the growth of the economy.
The sudden mushrooming of MNCs globally has led to people migrating to every corner of the world. To accommodate this sudden influx, investors have begun developing serviced apartments at rates which rival conventional hotels. While hotels are required to charge on a per night basis, these apartments offer better rates and are more economical when booked for longer time periods.
More people are becoming aware of the benefits of such apartments off late, leading to its exponential growth and expansion.
Advantages of Serviced Apartments Over Hotels
Serviced apartments are slowly gaining ground over hotels because of the unique services they provide, making it an excellent alternative for frequent travellers spending increased times away from home. These apartments are unbelievably convenient, what with the low costs and provision of excellent amenities.
Owners of such apartments find it cheaper to run than hotels, as apartment units require less upkeep and maintenance charges. Besides, serviced apartments only need to be staffed when it is in use.
This sort of accommodation can be distributed all across the city and the fact that more units can be added to scale up the operation easily, is also a huge advantage.
Serviced apartments have higher occupancy rates than hotels, especially during recruitment season when new hires seek temporary accommodation. Being relatively cheaper than hotels, they are an attractive option for stay.
This trend has not gone unnoticed by major players in the hospitality field. Major chains like Marriott, Grand, and Hyatt have opened up luxury and executive class apartments in major cities with growing economies. Many cities, as well as holiday destinations, have seen an increase in service apartments. People on a long vacation also find it cheaper to stay at such apartments rather than hotels, as they are cheaper in the longer run.
Medical tourism has also encouraged the growth of this market, and many such lodgings are being built in close proximity to major hospitals. Patients who need long-term care and frequent visits to the hospital make use of this service. These apartments also come in handy when beds are unavailable at the hospital.
In short, the serviced apartments industry is on the cusp of growth. They have taken the hospitality market by storm, and are here to stay.