THE formality of hotels with uniformed porters, wine waiters and hushed voices in the dining rooms, is ceasing to appeal to business travellers. Instead thousands are choosing to put up their feet in an apartment where they can warm a pizza, cook up a four-course meal or send for room service.
Serviced flats have surged in popularity in the past five years, outstripping hotel growth. A new survey claims they can be much cheaper for stays of more than two nights.
The research by FreshMinds for Go Native, a UK accommodation services company, found that staying in serviced apartments in Britain for a week could be two thirds the price of a week in an average hotel. The findings are based on an average corporate hotel rate of £99 a night. The differences are most notable in cities outside London.
Among companies expanding to meet the demand is the Cheval Group, which now has six blocks in locations including Knightsbridge, Kensington, Sloane Square and the City of London. All 286 flats offer five-star equivalent accommodation and cater for stays of a week to 90 days or more.
Research by the group shows that 65 per cent of bookings are for business travel, with occupants mostly from finance, banking, law, IT and entertainment firms.
They stay for an average of ten days and choose serviced apartments for their central location, privacy, security and space, with plenty of room to relax and to cook if they wish.
The Cheval Group’s Calico House property, in the City, has added an additional 11 flats to its portfolio, bringing the total number of apartments available to 45. The new flats are mainly studios, with rents starting from £725 a week (£103) per night, making them good value for business travellers looking for an alternative to a hotel.
There is also a growing number of Aparthotels, which have some public rooms, such as the Collingham Serviced Suites and Apartments in Kensington, with furnished flats supplying the convenience of an hotel.
Several large hotel chains are developing their own branded serviced apartments, and this year the UK’s first dedicated web-based portfolio of design-led serviced apartments in hotels was launched. TT Serviced Apartments offers more than 200 apartments in hotels in London, Italy and Germany.
Tony Tillyard started the business after spotting a trend in people wanting to rent apartments for short periods. He says: “There was a tremendous variance in the hospitality and operating standards of apartments. I could see there was a gap in the market for an exclusive international portfolio of serviced apartments selected for their standards of accommodation, service and design.
“Business travellers want the facilities and resources of an hotel with the comfort and privacy of home.” Tillyard believes the trend reflects the demand for a more tailored and personalised approach — for example filling the fridge to the guest’s instructions.
Another appeal is flexibility in size — from studios to one, two or three bedrooms, making larger flats cost effective for more than one traveller.
Serviced apartments appeal particularly to women business travellers, who can feel awkward sitting in a hotel restaurant on their own but resent being constrained to the room service menu.”
Frasers Hospitality, a specialist four and five-star luxury serviced apartment provider, reports that the percentage of female guests at its apartments in Chelsea has increased from 18 in 2004 to 27 last year and from 30 to 40 in its Kensington flats.
The company recently launched Le Claridge on the Champs Elysées, on the heels of its Harmonie Paris apartments in the La Défense commercial district, and plans to expand to 6,000 flats in gateway cities worldwide by 2009. TT has plans to broaden its property portfolio internationally and to key provincial cities in the UK.
“In the accommodation sector, the successful businesses will be those who are looking forward, adapting to customer needs and delivering what they want,” says Paul Clark, chief executive of Charter UK, which develops feedback software systems and solutions for the consumer industry.
Business travellers attracted by serviced apartments can even invest in them. Guest Invest invites customers to purchase a room in an aparthotel, where they can stay for up to 50 nights a year and earn rental income for the remainder.
Fractional ownership, where an individual buys or leases a fractional interest and is also entitled to a specified number of nights per year is available at 47 Park Street, Mayfair.
It's just like a second home
IRIS SCHWARZ is one of a growing number of women choosing serviced apartments when away on business.
Iris, who is Swiss, works in human resources with a global financial firm in London, and has been staying at Fraser Place in Chelsea in a split-level one- bedroom apartment. It is close to the Fulham Road’s restaurants, bars and shops.
She says: “I like to eat simple, light meals so it was good have a kitchen, rather than having to eat out all the time which can be expensive.” It is equipped with washing machine, dishwasher, broadband, satellite TV and plasma screen.
“It really feels like a second home. With a serviced apartment I have the space to bring more things with me and make it a really personal environment, while having the advantages of a 24-hour concierge, daily maid service and laundry services, as well as a fully equipped gym and conference-room facilities.”
