The serviced apartment concept in India has been around in one form or the other for about 10-12 years. Service apartments are an emerging trend in the corporate hospitality sector. Often, the executive traffic of many MNC and domestic companies is too erratic to justify a standalone company guesthouse.
Serviced apartments for short-term stays are growing in popularity these days. Nowadays, if you need to temporarily relocate to another city due to a medical emergency, go on vacation, or get ready for a wedding, you prefer a service apartment. These projects, which were created by developers or hoteliers, even cater to the needs of international expatriates and business travellers.
The market for this industry is progressively improving in Asia and, most crucially, India. It has already strengthened in the US and Europe. In places like Pune, Bangalore, and Delhi-NCR where there is a significant commercial presence and because of the presence of MNCs, the serviced apartment and vacation rental sectors are slowly but surely growing in India. A few vacation spots, including Goa, Shimla, Chennai, and others, have already embraced this newly discovered way of living. The 2010 Commonwealth Games in Delhi helped the serviced apartment industry tremendously.
In Gujarat, the demand for serviced apartments commenced with the setting of the Nano car project of Tata Motors on the outskirts of Ahmadabad.
“Globally, the serviced apartment sector continues to grow its share of corporate accommodation spending, according to the Global Serviced Apartment Industry Report (GSAIR) 2022. According to the report, the main factors for choosing serviced apartments over hotels are traveller preference, the total cost of stay and traveller well-being.”
In the current scenario, with the rise of business travel and staycations, service flats have taken on new meaning. They’ve become popular in India’s hospitality industry because they offer a variety of services. The serviced apartment industry is embracing new technology. With contactless technology, Covid-19 has pushed for even more safety. To comply with safety regulations, serviced apartments are now employing innovative technology and automation. It’s fascinating to learn what service apartments shun.
Major hotel chains, as well as individual brands, have been pitching high for service apartments and locations like Goa, Udaipur, Pune, etc are getting into the limelight amid investors. Homegrown hospitality brands have also started foraying into the service apartment category with Araiya Hotels and Resorts is the latest in the lot.
Serviced apartments present a safe, secure and stable investment option.
They offer long-term benefits. ROI is liable to increase year-on-year, helping earn a truly handsome monthly return. Their cost-effectiveness makes them an attractive choice for business travellers, which means investors can be assured of regular occupancy and thus, a steady flow of income. This security can be further fueled by the service apartment operator having tie-ups with leading MNCs to ensure continued demand.
As India’s economy inflates, the demand for serviced apartments will increase along with the rising population and it can be concluded that these have a brighter future ahead. Spectra Hospitality specialises in the consultancy for serviced apartments category and has projects in Udaipur, Shimla and Goa.