Monday, September 23, 2013

High demand for serviced apartments in Singapore

There are 36 serviced apartments in Singapore as of end August 2013 according to Colliers International. And demand for their collective supply of 4070 apartments units is just booming. And the increased demand is coming from nontraditional sources.

Traditionally, relocation and long-term corporate assignments have driven demand for serviced apartments in Singapore. Recent years, corporate demand for short term stays are in rise. Companies have discovered that accommodating a small project team on a short term assignment here in a serviced apartment in Singapore is much cheaper and convenient than accommodating them in separate rooms. Serviced apartments not only provide these folks separate rooms to sleep in, it also provides common living areas to work together.

And it is not only the business folks discovering advantages of staying in serviced apartments:
At the same time, leisure travellers – who typically stayed in hotels – are increasingly considering serviced apartments as a viable accommodation option as they become more aware of the convenience and benefits including cost savings of staying in a serviced apartment, especially for those travelling in larger groups, with families and/or for longer periods. 
Indirectly, the greater ease and convenience of making travel arrangements via the internet using mobile devices like smartphones and tablets has also helped the hospitality industry, including the serviced apartment segment, to capture more corporate and leisure business. Other demand sources include incoming expatriates who stayed in serviced apartments for at least a month while seeking more permanent accommodation in Singapore, and to a lesser extent, local residents who stayed in serviced apartments while renovating their homes or for other reasons requiring temporary accommodation. 
A portion of the demand for serviced apartments was also driven by repeat guests or those who have experience staying in a serviced apartment, whether in Singapore or elsewhere in the world.
Source : Welcome to My Home-Away-From-Home"
Serviced Apartment - Hotel Hybrids in Singapore
As the type of demand for serviced apartments is changing, new types of serviced apartments are emerging. These are serviced apartments with hotel licences which have no restriction on minimum stay and can rent out their apartment units on daily basis. There are currently three serviced apartments with hotel licences supplying a total of 639 serviced apartment units: 146-key Ascott Raffles Place Singapore, which opened in 2008; the 313-unit Capri by Fraser Changi City, a new hotel-residence brand by Frasers Hospitality located in Changi Business Park (CBP) which commenced business in 2012; and the Pan Pacific Serviced Suites Beach Road which started operating in May 2013 with 180 suites.

Ascott Raffles Place Singapore offers serviced apartments which can be rented on daily basis.
Another departure from the typical serviced apartment model, was the opening of The Club at Capella Singapore in 2009, which offers 62 sea-facing suites, 10 penthouses and nine manors. According to Colliers International Not only is this Singapore’s first and only serviced apartment development on Sentosa, it is also the first serviced apartment to offer a stand-alone villa-style serviced apartment option, instead of the usual apartment-style units seen on the main Singapore island.

The Club at Capella Singapore is Singapore’s first and only serviced apartment development on Sentosa.

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