The serviced-apartment segment is drawing significant interest from developers and owners. But with the segment's maturity comes the need for more options.
That's what Daniel Johansson, director of development and acquisitions for luxury serviced-apartment brand Cheval Collection said on the latest episode of The Upgrade, Hotel News Now's podcast covering hospitality news from Europe, the Middle East and Africa.
Interest has grown since the debut of Airbnb and more recently, since the pandemic, he said.
Johansson told Hotel News Now that as the serviced-apartment segment grew, both brands and products have evolved. He said there is "a much-refined offering ranging from the luxury space to a budget-lifestyle segment. There is a bit of choice out there … because the guest is looking for this type of accommodation and investors could see how resilient it was and really liked the look of the efficient operating model.”
“Much refined,” Johansson said, but “in my opinion … I think what would hugely benefit serviced apartments is more good product.”
He said investors also are drawn to the segment’s efficient operating model.
Serviced apartments, more popular in Europe than the U.S., are generally defined as extended-stay accommodations that typically include a suite with a full kitchen, but often without a full slate of hotel-style amenities.
“The beauty with the serviced-apartment product is that it suits short, long, business and leisure travel with an efficient operation and without the need to have several F&B outlets, meeting rooms, spa, et cetera, all of which are costly to build, staff-intensive and for most of the time have low profit margins,” he said.
Johansson added Cheval recently started its own loyalty program, more evidence, he claimed, that the sector is competing with traditional hotels and has a sound future ahead of it.
For more from Hotel News Now’s interview with Daniel Johansson and Cheval’s three brands and continued expansion into variations of serviced apartments such as urban resorts, listen to the podcast above.