The hotel sector may be struggling but, as Samantha Mayling reports, serviced apartments providers remain bullish about their prospects, and the earning potential they can offer agents...

Serviced apartment providers claim the sector, particularly four and five-star properties, is weathering the recession better than hotels.

Bard Vos, The Apartment Service marketing executive, says: “We have seen more enquiries for corporate apartments from business agencies which before would have booked hotels. On the leisure side, families enquire about apartments, as they offer cost savings.”

BridgeStreet is still receiving and converting the same number of enquiries as in 2008, its best-ever year. But sales and marketing vice-president Jo Layton admits: “The length of stay has decreased. We are forecasting to be about 10% down year-on-year.”

Frasers Hospitality says occupancy is 5-7% down this year, but rates haven’t fallen. Guus Bakker, Europe and Middle East chief operating officer, says: “Summer is strong because of training courses and Middle Eastern tourists.”

The Cheval Group director George Westwell says: “We had three consecutive record years, so we are not doing as well as 2008, but better than 2007. Short-term stays [seven days or fewer] are affected most.” The recession offers switch-selling opportunities for leisure agents, says Clare Ace, Saco Apartments business development manager.  

The Apartment Service

Sales: Offers 8-10% commission plus apartment tours for agents. Will be on HBAA stand (number 340) at Business Travel Market (June 17-18) to meet agents.    

News: Recent openings at Orchard Place, in Esher, Surrey, and Lapa Apartment, Lisbon. More apartments have opened in Vienna, London, Leeds and Dubai. Other new locations include Croatia, and Pune and Jaipur, India.

USP: Claims to be largest serviced apartment booking company in Europe, with more than 700 locations worldwide. Has “best available rate” on the day for Roomspace Serviced Apartments and promotes discounts on dedicated page on website. Features online booking and is introducing a white-label facility. Offers agents online training about its website.

SACO Apartments

Sales: Worked with about 100 agents in 2008 and is working with more than 130 this year. Commission rates start at 5%.

News: New website simplifies leisure sales. A corporate/agent area is under development.

USP: Features 11,000 apartments in more than 35 countries. London, Bath, Glasgow, Cardiff and Bristol apartments cater for rising self-catering demand from families. Encourages business travellers to extend stays for leisure and bring families.

 
Frasers

Sales: Bookable via GDSs and works with travel management companies (TMCs)

such as HRG, American Express and Carlson Wagonlit. Pays 10% commission and features promotions such as its current GDS banner with Amex and CWT.

News: Opened its second Scottish property, Frasers Suites Edinburgh, in May. An

expansion drive aims for more than 9,000 apartments worldwide to operate under the Frasers Hospitality banner by 2011. Opening new properties this year in Bahrain, China, Dubai, India, Malaysia and Singapore.

USP: Well-established brand offering fully serviced apartments – some operators offer just corporate housing. 

 
Cheval Group

Sales: Offers 10% commission and pays agents as soon as tenancy starts, unlike

hotels which pay after guests depart. Fam trips offering agent stays and show-rounds.

News: In November, bought Travel Trust Association-bonded agency Reside International to provide customers with travel arrangements. In London, a three-

bedroom house was recently added to the Cheval Apartments near Harrods, while a site of 150 apartments is being developed near the Tower of London.

USP: Owns its properties, which have general managers on site and 24/7 concierge and maintenance services. Claims its 286 London luxury apartments make it the market leader in the capital.

 
Staybridge Suites

Sales: Tiered rates means lower average prices for longer stays. Part of the InterContinental Hotels Group, it is starting to work with leisure agents for weekend and short-stay guests. Educational trips, training and incentive schemes are available for agents.

News: Liverpool and Cairo properties opened last year, while a Newcastle branch opened in April. In the coming year, the brand will make its debut in Russia (St Petersburg), open its second property in the Middle East (Abu Dhabi) and its third in the UK (at Birmingham’s NEC). 

USP: The properties are designed to bridge the gap between conventional hotels and serviced apartments. 

 

Citadines

Sales: Works closely with several agents. Recently held a “Spy” party at its St Marks apartments to raise awareness. A new agent incentive programme will be unveiled soon, tied in to its 25th anniversary.

News: Recent openings include Citadines Tokyo Shinjuku in March and Citadines

Singapore Mount Sophia in January. In Europe, Citadines will open its first Apart’hotel in Munich by September.

USP: A 24-hour reception and duty manager guarantee greater security. First serviced apartment operator in Europe to offer free Wi-Fi in every residence. Many residences allow pets for a minimal charge. 

 
BridgeStreet

Sales: Works closely with TMCs and is a Carlson Wagonlit preferred supplier. Available on GDSs and holds agency events to showcase products. As an active member of the Association of Serviced Apartment Providers, is keen to offer training to raise awareness of the sector.

News: Opened 77 apartments in Liverpool One development with Grosvenor Estates in April. A further building in the City of London will open, along with another UK property, by the end of 2009. Properties will open in Doha this months and in Dubai in October. Recently introduced online booking tools.

USP: Claims multi-currency billing and its service levels set it apart.

BCS (Business Concierge Services) Universal

Sales: Targeting selected TMCs, offering white-label websites, fam trips and viewings.

Seeks agents which work with heads of state, embassy staff, sports stars, entertainers and top executives. Agents pay nominal fee and commission is based on sales volume: up to £80,000 a year earns 15%, with rates rising to 20%.

News: Operates in London and Dakar, Senegal, with plans to expand to Paris and Florida.

USP: George Georgiou, European and Middle Eastern services director, says: “Our history makes us slightly different – part of our group is real estate investment business, and clients came from overseas. Instead of conducting business in hotel lobbies, we provided services such as chauffeurs, apartments rather than hotels, and meeting rooms.” Word-of-mouth recommendations meant this developed into BCS Universal.