Video:

Advantages and disadvantages of serviced apartments

Author: Marcel Lindt, James Kirk (yBC.tv)

Categories: Alternative Accommodation, Deal-making, serviced apartment sector
Tags: asset classes, Conferences, F&B, residential, serviced apartments, staffing
The staff level is a lot lower than, than in hotels, we all know that in F&B and in conferences, you have very high staff levels, so as we don't have this it's, it's reducing, our staff level. But also in terms of the normal hotel guest, it's when they check in and when they check out that the most work is created for the, for the hotel. And not just at the reception, but also for housekeeping, for the concierge, even for accounting, and so by having longer stays we can really reduce the amount of work that we have, per guest. It is a typical challenge for us, of course, having bigger units. and in fairness the units size have come down, in recent years. However, please remember we have all the space that we're not using for restaurants and conferences that we can now allocate for rooms for example, as well as we might use part of that space to rent out to retail. So all this generates additional revenue. I think another key advantage of serviced apartments is in terms of exit strategy, a hotel, you can always just sell as a hotel, in one block whereas serviced apartments, depending on the legislation in the country you are in, you might have the opportunity to sell the apartments individually as private residences And so therefore you have an option basically to if the residential market is booming, you might say "hey, you know, I'm actually selling these as residential" rather than, than, as a trading business.
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