GUEST BLOG: Why hotels might not be the best option for that longer stay

When you are going to stay in a new city, whether it is for business or for leisure the default option is often to look at which hotel in that city is best; however is a hotel really the best option? We take a look at what other options you have and why they might suit your needs better.

The reason why many of us choose to stay in hotels rather than the other accommodation options is habit plus you can be sure of what you will get when you go and stay.  Hotels will often have some kind of restaurant and bar, many will have gyms and as you go higher up the star rating, you will also start to get facilities such as business lounges, spas and pools. 

When you are only staying for a few nights, this can be the best option as you really don’t have to think about anything – it is all within the confines of the hotel.  But when you stay for more than a few weeks in a hotel, one room can start to feel a bit claustrophobic, especially when the room is not very big.  So what is the alternative?

Suites

Most hotels towards the more expensive end of the market will have a small proportion of suites as part of their room stock.  A junior suite on average will be double the price of a standard room yet the only difference is that it will have a seating area with a comfy sofa. Large suites may have a more clearly differentiated living/seating area and occasionally may even have separate rooms, but these options will be significantly more expensive than standard rooms. 

The issue with most hotel suites apart from the much higher nightly price is that they often do not contain any form of kitchen and you pay on a nightly basis rather than a weekly or monthly basis.  If you are staying for three months, paying a nightly rate can be much more expensive.

Apart-hotels/Suite Hotels

In the UK and to some extent in Western Europe these are a relative new concept and as the name suggest sit somewhere between hotels and apartments.  Within Apart-hotels you will often find on-site facilities such as restaurants/bars, laundry rooms and concierge services.  The only differences between this and a conventional hotel is that rather than maybe 5% of the room stock being suites, 100% of the stock is,  plus in apart-hotels most rooms will be similar to a junior suite and effectively it will be a rather small studio apartment.

It is almost certainly contain a small kitchenette which can be used for preparing basic meals but this is not a place you would want to be throwing dinner parties in.  With these properties you may well find that they will have a different pricing structure for longer staying guest than those who will only stay for a few nights.

Apartments

These are what most people rent as homes when they can’t afford or don’t wish to buy property.  Apartments are a whole property category within real estate and can range anywhere from a studio up to five or six bedrooms.

As with holiday apartments, standard apartments are often popular for two reasons:

1) You are staying in one place for a longer period of time (more than a month),

2) You want the freedom to cook for yourself and live the way you want to. 

Although you might stay in an apartment whilst on holiday (especially if you have a young family), you will normally pay for this either on a weekly or monthly basis.  This can be especially advantageous if you are not going to be taking any advantage of hotel facilities. 

Whether you are staying in a studio or a 2+ bedroom apartment, they will always have a fully fitted kitchen. Unsurprisingly like with any home, a standard apartment has one major disadvantage for busy people – you have to do all the cleaning and maintenance yourself.

Serviced Apartments

Serviced apartments actually are a great middle ground.  On average they will give around 30% more space than a standard hotel room of the same class.  Whether you stay in a studio or a 2+ bedroom apartment they will usually of a hotel quality finish designed by those from the repetitive hotel world culture.  They offer separate fitted kitchens, reasonably high quality bed linen, towels and toiletries and first-class home entertainment facilities – Sky TV based on hotel models, DVD, CD and the very latest in-room technology. 

Unlike suites or standard hotel rooms, a serviced apartment will prove to be more cost-effective especially once you stay more than 2 weeks.  You will also enjoy much greater flexibility choosing for yourself whether you eat in or out, plus you can also entertain friends and colleagues as if you were in your own apartment.  A disadvantage to most serviced apartments currently available is that they tend to be a bit boxy optimising to revenue rather than space.

On top of the advantages of the apartments themselves, just like in a hotel, your apartment will be regularly cleaned and serviced (usually twice a week for long stay guests), this means that the towels, bedding, soap etc. will be replenished on a regular basis.  When you think about it this is a perfect solution.  You get a stunning apartment yet all the hard work in keeping it stunning is done for you, leaving you the time to relax or entertain the way you want to.

One last advantage, is that most serviced apartment blocks tend to have a maximum of 30-50 apartments.  This means that within the one block you are looking at only 100-150 people living there at any one time.  This will in itself will make it feel a much more homely and friendly place to live.

Serviced Residences

Serviced residences are serviced apartments however they have been designed with a focus on the long stay 90+ day market.  This means four things:

1)       The finish has taken inspiration from bespoke interior design for living well and personal    service.

2)       Large spacious rooms where natural light and the comfort of the resident are equally if     not more important than revenue optimisation.

3)       Much higher quality finish in the equipment and technology installed- including top of the range kitchen and shower fittings. (E.g. each apartment will have a fully independent Sky TV system rather than a managed one). The furniture that is placed in these apartments is often unique pieces and certainly designed to last many years. 

4)       Much better value where by it can equate to a standard 5 star room rather than suite at a hotel.

The idea of serviced residences harks back to the 1920s and 1930s when people looked to stay in mansion blocks with a friendly concierge who would welcome you and give you a very high level of personal service.  In fact it was fairly common for people to actually be resident in hotels during that era, something which has fallen out of favour today.

Unlike other serviced apartments which can be located in any district, serviced residences tend to be located in quieter districts of cities.  However in the UK very few organisations provide this type of accommodation with many preferring the standard serviced apartment model.

In effect, selecting a serviced residents for a long-stay visit gives you all the benefits of living in your own home but none of the downsides like decorating and cleaning.  On top of this with many serviced residence you get to experience an upgraded more luxurious home from home stay.  It may be so good you will think again about renting a standard non-serviced apartment.

This was written by The Harrington Collection, who are exhibiting at The Business Travel Show on Stand B2630 - secure your free pass now by visiting http://www.businesstravelshow.com/register 

GUEST BLOG: Corporate Housing or Serviced Apartments?

Awareness of the benefits of serviced apartments as a spacious accommodation alternative to hotels is increasing, and their suitability for business travel and relocation has been well-documented over the last few years. What is perhaps less obvious is the distinction between serviced apartments and corporate housing.

Both corporate housing and serviced apartments operate under different names throughout the world, which can cause confusion for accommodation bookers. Is there a difference between the two or are they one and the same? Is it just a question of terminology? Which option best suits your business requirements and budget? In such a rapidly changing industry, it’s no surprise that the lines between many accommodation options are becoming more blurred.

When it comes to sourcing long term accommodation or managing relocation for colleagues, each and every client has different needs and expectations. Some prefer the luxury, facilities and flexibility of a serviced apartment for their senior managers, while others prefer a more cost-effective corporate housing solution for multiple project workers. Both options offer fully-furnished properties in central locations with more space and privacy than a hotel, but there are subtle differences between the two.

Our experience of providing a variety of solutions for the corporate market over the last decade has shown us how important it is to match the appropriate type of accommodation to our clients’ requirements.

Here are a few important differences that we have observed between serviced apartments and corporate housing, to help you make an informed choice:

Key differences

Accommodation Features
Serviced apartments are typically part of an existing property portfolio and are furnished to an agreed standard in accordance with the provider’s brand. The benefit of a serviced apartment is both the booker and the guest know exactly what they are getting and can view the property in advance to check it meets their needs.	Corporate housing is sourced specifically for the client and is set up according to their exact requirements. This ability to choose the location, customise the product and ‘cherry pick’ services not only provides comfort and convenience for guests, but it also gives buyers greater control over their business travel budgets. Corporate housing can be made more or less luxurious, according to the client’s requirements.
Duration of Stay
Serviced apartments appeal more to smaller groups of colleagues, families and individuals, as they offer a convenient solution for ad hoc stays. Booking is easy and individuals who are unsure about their ongoing need for accommodation can benefit from flexible cancellation terms and the opportunity to extend.	Corporate housing agreements are more cost-effective for a larger groups and clients who know the duration of their projects, as they can provide a lower cost per head. This type of agreement places the onus on the client to commit over a longer time period, typically between 1 – 5 years, as properties are sourced for their needs only.
Contract Terms
Serviced apartments are usually offered to clients at set rates, which reflect the flexible contract terms and the facilities available. The costs are often higher, but many businesses are prepared to pay more for the flexibility and additional services offered.	Corporate housing has less flexible contract terms and cancellation can incur a high penalty. However, if a client is confident about the length of a project, the lower cost can be attractive.
Cost
Serviced apartments can offer savings of up to 30% in comparison to hotels, due to the inclusive rates offered, which cover utilities, Sky TV, Wi-Fi, housekeeping services, 24 hour on call maintenance and more.	Corporate housing costs as little as one third of the price of a hotel room and can be more affordable than serviced apartments, due to the savings achieved by rotating guests in properties. Stock may be secured for a client for a year or more, however the average length of stay for each guest may be only a few weeks. By giving the client the control over rotating incoming and outgoing guests in each property, room occupancy can be maximised and vacant periods reduced.

Is it mainly a question of risk?

In some ways, yes, or to be more exact, a question of who is taking the risk of cancellation and vacant periods. Clients that need to maintain the flexibility to amend their stays at relatively short notice might prefer the low risk option of serviced apartments. The cost may be higher, but the risk is more on the side of the provider than the client, as they have to bear the cost of vacancy.

Clients that are prepared to commit long term and take the risk of vacancy may benefit more from a corporate housing agreement. By forgoing some flexibility and taking more risk, the cost is lower and rewards can be far greater.

Which option is best for your business?

Example 1

You’re the travel manager of a large multinational company, tasked with relocating a group of project workers from overseas to the UK. You’re looking for 20 two bedroom properties in the same location for a two year project. In this scenario, a corporate housing agreement could be the best option.

Working closely with a provider on a bespoke solution would allow you to secure the exact number of properties you need, strip out some of the more luxurious ‘extras’ and only pay for the essential services and facilities you really want. Everything can be customised, from the type of furniture package and the number of beds in the property, to the check-in arrangements and frequency of housekeeping.

The cost savings that can be achieved by committing to a longer term agreement mean you have more to spend on the specification of the properties. This clever compromise delivers exceptional value and your colleagues can enjoy a comfortable home from home environment, rather than having to endure an impersonal and cramped hotel room for months on end.

Example 2

You’re a PA searching for luxurious, 5-star accommodation for your CEO for a short term stay. Privacy, freedom and plenty of space to work or relax with family is important, as is the opportunity to amend the length of the stay.

A serviced apartment could be a better option, as it would include a personal meet and greet, comprehensive apartment induction, weekly housekeeping services, a welcome pack and a host of additional home comforts, such as Wi-Fi and Sky TV. Both the booker and the guest know exactly what facilities are available and can take advantage of the flexible contract to reduce or extend the length of the stay, as required.

Finding the right fit

Ultimately, both serviced apartments and corporate housing have a number of benefits and sometimes a combination of more than one accommodation option can work well. The most important thing is that providers fully understand their clients’ requirements in order to establish the best fit for the business, the project and the guests.

This blog was written by Charlie Turner, CEO of Executive Serviced Apartments (esa). Charlie and his team will be on stand B173 at the Business Travel Show. Register now at www.businesstravelshow.com.  Executive Serviced Apartments offers a wide range of corporate accommodation solutions and has achieved the ASAP Quality Marque for its high standards.