The hotel apartment sector is evolving to attract guests that are looking for the benefits of long-stay with the service levels and facilities of hotels. While there is still a lack of internationally branded long-stay accommodation in the Middle East, a number of operators are making headway to capitalise on this growing demand.
The Middle East is witnessing a rise both in the number of companies looking to enter the hotel apartment sector, and those bringing their existing products to the region.
In Dubai alone, The Department of Tourism & Commerce Marketing (DTCM) has registered 165 serviced apartment properties offering 14,969 units, and more than 20,883 units in the pipeline for the next few years.
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However, the traditional limited service offering associated with studio apartments for the solitary long-stay worker is no longer capturing the imagination, or the revenue. In addition to increased activities and better facilities, guests are looking for smart functional spaces, and larger rooms that are even more homely.
While some are being left behind, the trendsetters are bringing more innovative products online to capture demand from guests looking for the combined advantages of long- and short-stay accommodation.
For example, Viceroy Palm Jumeirah will offer a mix of long-term residential units and hotel rooms and Banyan Tree will soon launch its Cassia brand, aimed at putting a long-stay product at the heart of a destination with an emphasis on luxury and additional membership perks.
While a number of guests are looking for a more luxurious long-stay offering, there is significant growth of mid-scale serviced apartments across the Middle East, particularly in the UAE and Saudi Arabia, according to Christopher Hewett, senior consultant TRI Consulting.
“Although there is demand for luxury properties, the majority of new developments will be positioned as upscale or midscale. This is due to the wider demand base these properties can attract, whether from regional families or long-stay corporate demand,” he says.
Freddy Farid, area general manager, Gloria Hotels and Resorts agrees that “people are looking for affordable luxury”, and referring to this demand for diversity, Chadi Nicolas, general manager, Hala Arjaan by Rotana believes it is an “exciting market”.
The Statistical Center of Abu Dhabi noted earlier in the year that hotel apartments had a high average occupancy rate of 88% and Nicolas believes this is “due to the comfort and space that serviced apartments can provide”.
And this trend is being considered by those undertaking new developments, according to Amit Arora, CEO hospitality, SKAI Holdings, the property developer of Viceroy Palm Jumeirah, to open in 2016.
Arora asserts that a growing number of new hotel developments are adopting a mixed-used approach, “incorporating individual hotel rooms and a range of different sized hotel apartments that cater to long-term guests”.
Sherif Madkour, general manager, Al Maha Arjaan by Rotana adds: “Guest knowledge has grown drastically — they have realised that a serviced apartment does not mean basic, but means convenient, spacious and luxurious.”
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