Corporate demand for serviced apartments on the rise, says new report

The serviced condo sector continues to develop its share of company lodging spend, in keeping with the World Serviced Residence Business Report (GSAIR) 2022, launched at this time by the Journey Data Community and Habicus Group, the guardian firm of serviced condo agent SilverDoor.

The report, which included a survey of 6,000 corporates, 2,000 serviced condo operators and 1,800 brokers in addition to greater than 70 interviews with business professionals, revealed that serviced condo utilization is on the rise.

Fifteen per cent of corporates reported utilizing serviced residences extra for enterprise journey and shorter (1-28 night time) stays since 2021. Fifty-two per cent of corporates and 60 per cent of TMCs additionally reported a rise of their use of serviced residences for relocation functions since 2020.

Twenty-three per cent of companies surveyed mentioned they now have formal agreements with serviced condo or residence keep manufacturers, and 9 per cent of firms have added non-hotel lodging choices to their journey programmes because the Covid-19 pandemic.

In response to the report, the principle elements for selecting serviced residences over motels are traveller desire, complete value of keep and traveller wellbeing.

Serviced residences noticed enterprise enhance in the course of the pandemic as a result of, as acknowledged within the report, they provided a safer possibility for travellers, devoted and safe workplaces and the flexibility to cook dinner and eat privately. Sixty-eight per cent of operators mentioned they took market share from motels in some or all areas, nevertheless charges took successful, with the common each day price 42 per cent of revealed charges.

Enterprise journeys in 2022, whereas fewer in quantity, are anticipated to be longer, which bodes effectively for serviced residences. In response to the report, 39 per cent of enterprise journeys in 2021 have been eight nights or extra, and the proportion of seven–14-night enterprise journeys in 2021 was double that of 2019 – a pattern that’s anticipated to proceed.   

World attain of the serviced condo sector additionally continues to increase. In 2007, 77 per cent of world provide was within the US, in contrast with simply 52 per cent at this time. Nonetheless, provide shortages in key areas and inconsistent high quality in current provide stay the largest hurdles to the sector claiming a higher share of company lodging spend.

This 12 months’s ninth version of the report is the primary since The Residence Service (TAS) was acquired by Habicus Group in September 2021, and was a collaborative effort between TAS, the Journey Data Community and SilverDoor Residences.

Habicus Group CEO, Stuart Winstone, mentioned: “Now we have thrilling plans for GSAIR and sit up for guaranteeing the report continues to satisfy the wants of purchasers and companions alike.”