Experts have revealed that the serviced apartment business will see the GCC become its biggest source market, with more than 10% currently coming from relocation guests in the MENA region.
Colliers International released its comprehensive report "The MEA Serviced Apartment Markets & Guest Experience Index" providing insight and analysis of the Middle East and Africa’s serviced apartment markets.
The report revealed an opportunity for international operators to meet a growing demand for high quality serviced apartments in the MEA region suitable for a diverse range of guests.
Speaking exclusively with Hotelier Middle East, Colliers International head of hotels for the MENA region Filippo Sona said: "The serviced apartment business will be fuelled in the majority by the GCC - this region will be the biggest source market for the sector."
He continued to identify domestic and regional inbound tourists as being significant sectors, with 10-15% of the total serviced apartment business coming from relocation guests in the Middle East and North Africa.
Short-stay guests who are visiting a city with their families for leisure purposes are also identified as a growing trend, according to Sona.
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"The most interesting trend is that for the past three years the markets that scored the highest in guest satisfaction have been Doha, followed by Abu Dhabi and Dubai," Sona said. He added that a boom in serviced apartments in these more mature markets has resulted in growth which now exceeds 35% of total regional serviced apartment supply.
The report indicates that Dubai has the largest serviced apartment supply in the region at approximately 29,000 keys (232 properties), of which 36% of the total supply is managed by international brands. Outside of the UAE, in terms of number of serviced apartment keys, Riyadh follows with 129 properties (approximately 5,500 keys), however, serviced apartments in the city average a lower 43 keys per establishment, with only 2% of the stock managed by international brands.
In order to attract this sizeable market away from hotels, the research found that serviced apartment operators need to ensure that they are offering the highest levels of cleanliness and service, while also offering value to their guests.
Looking to the future Sona anticipates Saudi Arabia to become one of the key destinations attracting the most growth in the serviced apartment sector, with a mix of independent and international brands driving tourist numbers.
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