Serviced Apartments: Is this the Right Moment in for them to Serve Better?

Jul 14 / admin@aplbc

Introduction:

We are all experiencing very challenging times during this COVID -19 pandemic. We at APLBC are, however, confident that this industry will survive and we remain optimistic especially with the serviced apartment sector.

To this end, and based on the numerous interactions we have had with serviced apartment owners and customers, it has occurred to us that today, even amid challenges, the industry tends to remain strong and healthy.

Most specifically, thinking forward for the next 24 months after the pandemic, even when we continue to recover a sense of normality, the forecast for the industry is more positive than other sectors of hospitality!

The impact of lockdowns:

The general opinion indicates that, when we continue to coexist with this virus and step on, we must lead our everyday lives in a far more managed environment. This will occur until either a vaccination is discovered or the virus recedes on its own accord.

In all cases, we are expected to work in a fresh world shortly. As a consequence, it is anticipated to have a major influence on hospitality and the way visitors, both corporate and leisure.

Fast forward to Phase 2 and Phase 3 of the pandemic, when governments have control of the R0 number (infection rate generated by one person) and are thus in a position to ease lock-down measures and begin a return to what is going to be a new normal.

The modern standard is where we have been contemplating and contrasting the qualities of the serviced apartment sector to other hospitality brands.

So far as the accumulated data we have gathered is concerned, there are certain characteristics of the serviced apartment industry that resolve all the concerns posed by the lock-down initiatives implemented by governments.

The way to adapt: Impact and the solution:

Modern types of hospitality, including hotels, hostels and shared accommodation (such as Airbnb) are met with a variety of problems that serviced apartments do not see. We expect that hospitality products requiring visitors to share sleeping and living spaces will be under tremendous strain after this pandemic. This is only our opinion, but we assume that for a long time (if not forever) travellers would be opposed to sharing a bedroom or living space.

This takes us to conventional hotels, where visitors become almost reliant on the usage of open spaces. Primary challenges and implications, as it appears to be are

Rooms need to be cleaned and linen changed regularly-this involves unnecessary engagement between guests and staff.
There is no kitchen that causes visitors to strive for alternative solutions-this involves needless interaction with the outside world.
The increased amount of footfall in the hotel is considerably greater than the serviced apartment-shorter duration of stay, more employees, more amenities-collectively, the number of people engaging inside the building is expected to rise by 2-3 days a week; this makes for a higher likelihood of interaction.

Several of the aforementioned considerations have brought us to the assumption that it is likely to be a decisive moment (and, most significantly, an opportunistic one) in the serviced product life cycle of the building.

The effect and the potential will become much more apparent when we continue to see the gradual change to workplace practices (e.g. fewer office space needed) and the eventual demise of too many companies. The ensuing crucial task for investment homes would be to re-purpose and select occupants for millions of square footage.

Conclusion:

An exciting, difficult and opportunistic time is ahead. This modern way of living is bound to stay with us for several months, if not years, and if we are right, and believe that’s going to transform the way we travel for decades to come. However, we always do believe that this moment in time will become important and defining for the serviced apartment business. The question is whether operators and owners can, collectively, reinforce and deliver this message to the consumer to win over modern-day travellers. We, for one thing, don’t see why not.

About AP LBC:

The AP LBC team believes that independent hotels deserve better global recognition, bespoke services and solutions to represent them to the international markets. With a wealth of experience and decision making driven by hotel insights, AP LBC navigates partner hotels in this competitive space, ensuring the right penetration in Corporate, MICE, Leisure and Entertainment segments.