Now may be the best time to stay in a serviced apartment. Beverley Fearis gives the lowdown on some of the big names in the extended-stay game
Among the UK corporate clients of Carlson Wagonlit Travel (CWT), bookings for serviced apartments are up a staggering 250 per cent year on year. Admittedly, this growth has come from a relatively small base, but the rise is still significant.
"We are seeing a big increase in this sector, primarily because people are looking for alternatives," says Nigel Turner, the travel management giant's director of public sector and industry affairs UK.
"There is no greater incentive than financial pressures to encourage clients to try something different, and one of the winners seems to be the serviced apartments sector. "Apartments seem to offer good value for people spending more than one or two nights. Plus, they are actually a better product if you're staying for that amount of time."
According to Turner, more and more business travellers are attracted to the extra space and homely comforts that serviced apartments bring. And, just in the same way that low-cost airlines have unbundled the air travel product, he believes serviced apartments have stripped back some of the sometimes-unnecessary frills you find in hotels.
"Travellers are now asking - what is really important to me? Do I want to pay for a pool, or for room service, when I don't really use it?" Turner says. Rival travel management company (TMC) HRG (Hogg Robinson Group) has also seen a rise in demand for serviced apartments. The group's director of global hotel relations, Margaret Bowler, puts this shift down to a greater awareness.
"Over eight years ago, when I started in this role, apartments weren't such a big thing, but every year more people are becoming aware of them. We are definitely seeing a trend towards this type of accommodation, and part of that is through a wider knowledge of the benefits and a realisation that these apartments are available," she says.
"For companies with employees that need to be in a place long term - perhaps if they are relocating or undergoing training - apartments provide them with more space and independence. "The longer you book them for, the better the value, and if you factor in the cost of eating in the hotel, which comes out better?"
However, Bowler points out that as the economic downturn has impacted on hotel rates and occupancy, hotels have now regained some of their competitiveness.
"Whereas last year hotels had little availability and maxed out on price, you can now get better rates in hotels," she says. "Today, more than ever, price is critical but it's not cut and dry. There is a certain type of traveller who wants a kitchen and the extra flexibility of an apartment, but it's not for everybody.
"It's very individual to each client. Clients need to understand their business. Some have apartments included in their corporate programme, others do not."
She says many travellers prefer a mix of apartments and hotels, taking advantage of the growing breed of apart'hotels, which offer larger rooms with kitchen and lounge facilities but with traditional hotel services. InterContinental Hotels' Staybridge Suites, Residence Inn by Marriott, and Homewood Suites by Hilton are all such examples.
"Some of the big brands in North America are coming into the European marketplace, but not very fast," Bowler says. "They have microwaves and washing machines, and shops in the lobby where you can stock up on milk and cereals. They have very good prices, too. Guests get the best of both worlds."
From a booking point of view, these big brand apart'hotels are also attractive to TMCs because they are represented on the global distribution systems (GDS), alongside hotel rooms, making it easier for consultants to book stays and manage spend.
Recognising the need to appeal to the TMC community, many of the larger serviced apartment groups are now also represented on the GDS.
"Ideally, you want to see this inventory on the GDS right next to your hotel inventory," says Paul Tilstone, executive director of the Institute of Travel & Meetings (ITM).
But he believes many TMCs are still reluctant to court business from the apartments sector because they are tied up in incentive deals with hotels.
"Many have one or two clients that are demanding it, but others are missing a trick by not offering all sorts of alternative inventory, whether it's for longer or shorter term stays," he says.
"It's the same with the management of cars. TMCs are keen to handle the short-term rental needs, but not to help clients with their longer-term car fleets.
"I do think there is an opportunity for TMCs to widen their influence. We are in a world where they are supposed to be paid by the corporate, but some of them won't let go of the old-style supplier commission structure. If they truly switch to full remuneration from clients, this frees them up to offer a much broader inventory."
Whether for this reason or not, a surprising number of TMCs contacted in relation to this article said they handled only a marginal amount of business with serviced apartment providers.
American Express, for example, says it processed few bookings. "Whilst the American Express Business Travel Advisory Services is happy to negotiate rates for serviced apartments on behalf of clients, demand at this time is relatively low," says Amex's director of advisory services Prashanth Kuchibhotla.
A spokeswoman for independent agent Chambers Travel says: "It's absolutely a service that we offer, but we've only had a handful of requests in the last year or more."
Chambers is, in fact, a member of Advantage Travel Centres, a consortium of independent travel agents, which is now starting to proactively promote apartments among its members. Recognising their growing appeal, Advantage is introducing a section dedicated to serviced apartments in its 2010 accommodation directory, alongside hotels.
"We have commenced conversations with several suppliers and want to be able to feature them in some shape or form," says Neil Armorgie, CEO of Worldwide Independent Travel Network (WIN), the international side of Advantage, and also responsible for hotel relationships.
"We want to communicate with our clients the benefits of trying this alternative. Some are so hooked on staying in hotels and are not aware that you can book long stays in this way, with more flexibility and often greater value for money," he says.
"When we started working more closely with the serviced apartment sector, they weren't set up to work with TMCs. But they have now simplified their commission structures and use a model that TMCs are used to. The move to the GDS has certainly helped TMCs, too, but I think it probably still only covers 50 per cent of the market."
In an effort to simplify the booking process on behalf of corporate clients, Advantage has looked at introducing its own booking portal, featuring several apartment suppliers with search by destination, dates and features.
"We have put this on the back burner for now, due to cost," says Armorgie. "We felt that the marketplace was still quite fragmented and the technology to bring them all together wasn't available at the right price. But it is something we are still considering longer term.
"For clients and TMCs, time is money. An apartment is a more complex booking, it's more involved," she adds.
Perhaps because it is a more complicated process, many corporates prefer to book serviced apartments direct rather than use their TMC.
Julie Poxon, for example, is office administration manager for RWE Dea UK, an international operator in the field of exploration and production of natural gas and crude oil. The company uses a travel agent to book hotels and transport, but prefers to organise apartment stays directly with the company's preferred supplier, Citadines.
"We like to have our own relationship and book direct. We do the same with our local hotel bookings," she explains. "We can do the booking online, but we like to speak to somebody."
RWE Dea UK uses apartments not just for longer bookings, but also for shorter stays. "We often have visits from our people in our head office in Hamburg, coming for one or two nights. They use a Citadines apartment three doors away, as it's very convenient. They like to cook for themselves and get used to the extra space. It's not so much about cost cutting as about convenience and comfort."
Patrick Firebrace, assistant director of finance for commercial law company Beachcroft, says his company also uses apartments for both long and short term stays. "In many cases we find that they are of a higher quality for a better price than hotels. They are good not only for long/medium-term stays but also as one-offs," he says. "Usually they are cheaper, convenient for our office locations and allow people staying away for a long period to have somewhere that feels more like home. The only issue is security, where some staff don't feel safe with no reception or doorman as they arrive in some dark streets."
With the current focus on keeping costs down, he says Beachcroft is using apartments more than ever, through its preferred provider SACO. "SACO's booking systems are clear and straightforward," he explains. "We negotiate with providers by having a degree of buying power but also a good understanding of what the market is charging and a good relationship with the provider."
Unsurprisingly, many apartment providers are also keen to cut out the middle man and deal with their clients directly.
Ascott International launches a loyalty scheme in the UK this September, aimed at individual and corporate customers. Called The Link Club, it rewards everyone who places a booking with any Ascott apartment worldwide, which includes the Ascott, Somerset and Citadines brands. It also provides members with an exclusive networking facility allowing them to communicate and also to exchange ideas.
Specialist apartment agencies are also targeting corporates directly. Select Apartments, for example, runs a corporate loyalty scheme, Select Living, which rewards travel bookers and PAs within companies.
The Apartment Service, meanwhile, has recently completed its move on to the GDS and offers many of the services a TMC usually provides. The agency is now able to list preferred properties on a client's intranet or website, report all enquiries and bookings on a weekly or monthly basis, and send monthly business analysis and management information reports. It also provides account management for larger corporate clients.
But whether corporate buyers decide to book direct, use a specialist apartments agency or employ a full-service TMC, one thing is for sure - there has never been a better time for business travellers to give serviced apartments a try.
The Apartment Service
www.apartmentservice.com
020 8944 1444
Global booking agent with a strong presence in the UK and mainland Europe and also with extensive North American, Australasian and Far Eastern listings. Promotes all the major three-, fourand five-star chains. Website links and data links to a global distribution system (GDS) on schedule to be completed this summer, to add a further 315,000-plus apartments to online listings, most with online booking capabilities.
Ascott International
www.the-ascott.com
0800 376 3898
Mixture of 10 owned and managed properties worldwide in London (Mayfair), Beijing, Guangzhou, Shanghai, Jakarta, KL, Manila, Singapore and Bangkok. Properties are five-star luxury, some with pools and fitness centre, with a mix of contemporary and traditional décor.
Each property has a mix of studios, and one-, two- and three-bed apartments. No minimum stay in UK or Europe but for some countries in Asia the law stipulates a minimum stay of one week.
Five properties are in the pipeline: Beijing in August 2009, Shanghai, Shenzen and Astana, Kazaksthan, by end of 2010, and Bahrain by end of 2013.
BridgeStreet Worldwide Serviced Apartments EMEA
www.bridgestreet.co.uk and www.bridgestreet.com
0207 792 2222
Around 1,200 apartments, 800 of which are in London. Also in Liverpool, Manchester, Birmingham, Heathrow, Jersey, Leeds and Bristol. To manage high demand, it can increase its inventory extensively. Globally, BridgeStreet Worldwide claims to be the second largest provider in the US and works with a network of over 15,000 apartments.
It has a mixture of modern and traditional listed buildings with three- to five-star apartments, as rated by VisitBritain. Studios, and one-, two- and three-bed apartments come with wi-fi/broadband and the latest in audio-visual entertainment.
Properties opened recently in Liverpool and Doha. In October, a 126-apartment development opens in Dubai Sports City. Expansion into Dubai will continue into 2010 with the opening of a further building called Metro Central in TECOM. Other projects in Dubai are planned.
A multi-currency billing system is aimed directly at clients requiring global travel programmes.
Cheval Group
www.chevalgroup.com
020 7225 3325
Operates 286 apartments across six properties in London, located in Knightsbridge, Kensington, Chelsea and the City. Specialises in luxury serviced apartments, with a mix of modern and traditional interiors. Three properties have a minimum one-week stay and the others (all in Kensington) require a minimum stay of three months. A new three-bedroom apartment in Knightsbridge, 38 Cheval Place, will open in autumn 2009 and will operate under Cheval Apartments.
Apartments have 24-hour concierge service, fitness rooms or complimentary local health club membership, satellite TVs and wi-fi (at an extra cost).
City Apartments Ltd
www.cityaparts.com
020 7726 2626
Owns 125 one- and two-bedroom apartments in the City of London. Prefers to deal directly with clients, rather than sell through agents.
All properties are contemporary three- or four-star, one- or two-bed. All are officially assessed and rated by the VisitBritain Quality Standard for Serviced Apartments.
Has a further 25 units in the pipeline across three buildings in the Square Mile scheduled to come on line over the next seven months.
Free broadband and full Sky package in all properties and 10p per hour telephone call charge to most major countries. No minimum stays.
Citadines Apart'Hotel
www.citadines.com
0800 376 3898
Operated by Ascott International, Citadines has 54 properties worldwide, with a strong presence in Europe. Most are owned but a handful are managed. Apartments are mainly three-star and some are more luxurious. They all have 24-hour manned reception and many have breakfast rooms.
All apartments have stylish décor and around 70 per cent are studios. No minimum stay is required.
Projects in the pipeline include Munich in September 2009, Tiblisi, Georgia, by end of 2009, and in 2010 properties are due to open in Chenai, Suzhou, Kyoto, Aktau (Kazakhstan), Jakarta and Melbourne.
It has recently introduced a 24-hour flexible rate and claims to be the only operator offering this new service.
Clarendon Serviced Apartments
www.clarendonuk.com
01784 489 200
Clarendon has 75 managed apartments in Canary Wharf, 75 owned and managed in the City and West End, and 50 owned in South West London. All are four-star and contemporary in design. In all areas there is a mix of one- and two-bed apartments. Typically the minimum stay is five nights.
Clarendon has grown in the City by 30 per cent in the last year, with the addition of Pepys Street (Tower Hill) and Steward Street (off Bishopsgate). In April 2009, it added apartments in Covent Garden and has taken on a second block in Wellington Street. It plans to continue to grow its portfolio in the City and Covent Garden with further openings in 2009 and early 2010.
Frasers Hospitality
www.frasershospitality.com
0207 341 5599
32 properties worldwide with 4,700 apartments. This will rise to 9,000 rooms in 2011. Eight are in London, two in Scotland (Edinburgh and Glasgow) and two in Paris. The rest are mostly in the Far East and China. More development is planned for India. Frasers Hospitality is not a broker but operates management contracts with owners.
All properties are four-star rating with mainly contemporary décor and have a mix of studios, one- and two-bed apartments. There are penthouse suites available at some properties. Stays can be from one night.
This year, new properties opened include Edinburgh, Bahrain, Budapest, Doha, Dubai, and Kuala Lumpur. By 2011 new developments will include Bangalore, Chengdu, Guangzhou, Ho Chi Minh City, Hyderabad, Jakarta, New Delhi, Osaka, Perth, Suzhou and Tianjin.
Frasers offers special corporate rates and incentives listed on its website.
Roomspace Serviced Apartments
www.roomspace.com
020 8944 1444
39 apartments across London and the South East of England, plus two locations in Lisbon and another in Madrid.
Properties are classified as four-star, with a mixture of one- and two-bed apartments. Minimum stay is seven nights.
Roomspace has recently opened the Lapa Apartments in Lisbon and Roomspace Serviced Apartments Orchard Place in Esher, Surrey. In the autumn it will open in central Madrid.
It also operates Roomspace Solutions, locating and operating corporate apartments.
SACO Serviced Apartment Company
www.sacoapartments.co.uk
0845 122 0405
Manages apartments in 19 locations covering Glasgow, Nottingham, Derby, Manchester, Birmingham, Reading, Camberley, Farnborough, London (Covent Garden, Bloomsbury and Canary Wharf), Bath, Bristol, Cardiff and Jersey. It also acts as a broker for apartments in other countries, including Belgium, Canada, China, Czech Republic, Egypt, Denmark, Hungary France, Finland, Gemany, Ireland, UAE, the US and other UK locations where it does not manage its own apartments.
All SACO properties are assessed and graded by VisitBritain and are four-star accredited, except for two three-star locations.
SACO was scheduled to open new apartments in Manchester in August, next to Piccadilly station in the new Hub development.
Select Apartments
www.selectapartments.co.uk
0845 055 6352
Independent corporate apartment brokers with 667 properties worldwide, including 184 apartment buildings in Central London, 45 in Greater London and 315 across the UK. Apartments range from budget to deluxe.
It operates Select Living, a corporate loyalty scheme rewarding travel bookers and PAs. The scheme currently has over 90 members. Points are earned for making bookings and exchanged for Leisure Vouchers, which can be used at David Lloyd gyms, Costa Coffee, several restaurant chains and a range of experience days.
SilverDoor
www.silverdoor.co.uk
020 8630 7200
An independent serviced apartment agent representing 892 apartment buildings in 173 cities worldwide. London is its largest market.
Claims to offer a one-stop serviced apartment solution for corporate clients and TMCs. Average length of stay is six weeks, but also caters for shorter stays. Offers mainly one and two-bed apartments, but has studios and three-bed apartments, too.
Will handle payments, credit facilities and administration on clients' behalf.
Somerset
www.somerset.com
0800 376 3898
Operated by Ascott International, Somerset has 44 locations, mainly in Asia and the Middle East, and a mixture of owned and managed properties. They are geared towards executives travelling with their families and have mostly contemporary décor. There is no minimum stay required in the UK or Europe but for some countries in Asia the law stipulates a minimum stay of one week.
Projects in the pipeline include Bangkok this year; India, Kuala Lumpur and Moscow in 2010; and Bangalore and Saigon in 2012.
Review: London
Market View, London (BridgeStreet Worldwide)
One of nine BridgeStreet properties in the City of London, Market View consists of 63 serviced apartments split across two Victorian buildings. Apartments have a lounge/dining area, a fully equipped kitchen, and one, two or three bedrooms. I was staying in a two-bedroom, front-facing apartment. The master bedroom had a double bed, a small TV, an iron and ironing board, a trouser press, and an en suite bathroom with BridgeStreet-branded amenities and a combined bath and shower. The second bedroom had a bathroom next door rather than en suite (shower only).
The lounge area was bright, with large windows, hardwood floors, light décor and several framed prints on the walls. Facilities included a sofa, glass coffee table, and dinner table with six chairs, a flatscreen TV with Freeview channels, a DVD player, and a radio/CD player. One point to note is that the property does not have air-conditioning, but fans were provided in both the lounge and bedrooms.
The kitchen was situated in an alcove to the right of the lounge. Amenities were impressive, with plenty of storage space, and a comprehensive range of appliances and kitchenware. As well as a handbook with information about the apartment and the local area, all guests also receive a welcome grocery pack. This included UHT milk and orange juice, two cans of soft drinks, a small pack of Pringles, a mini-pack of stem-ginger biscuits, a bar of chocolate, and tea, coffee, sugar, salt and pepper. Other facilities include a video entry phone and wired internet access (no wifi), charged at £6 per hour, £12 per day, £28 per week and £45 per month.
The front desk is manned between 7am and 11pm, and there is a 24-hour emergency maintenance number.
Cost: A one-bedroom apartment costs £188 per night for a stay of between one and six nights, £145 per night for stays between seven and 28 days, and £130 for stays of 29 nights or more.
Reservations: 020 7792 2222; www.bridgestreet.co.uk and www.bridgestreet.com
Review: London
Calico House, Bow Lane, London (Cheval Group)
It is often said that "location, location, location" is the most important thing for a hotel, and that is also true of an apartment. Calico House is only five minutes' walk from the Bank of England and other City institutions, with St Paul's and a lovely little street of shops, bars and restaurants on your doorstep.
The apartments are in a gated courtyard, and mine was on a first floor corner of the building, overlooking cobbled Bow Lane. The small but fully equipped kitchen with granite worktop would be very useful for a long stay, but there are plenty of places to eat out within a three-minute walk. The very large sitting and dining area had sofa, lounger, table with four chairs, TV, video and CD player, with mood lighting and a direct-dial telephone. The bedroom was stylish with king-size bed, TV and safe, but the bathroom was no more than standard.
These apartments are very secure with key card access to each building and the courtyard also locked at night, and each apartment has an intercom entry system. At night there was a little noise from the street, but you would never guess you were in the heart of the City.
Cost: The minimum stay is seven nights, with prices from £954.50.
Reservations: 020 7489 2500; www.chevalgroup.com
OVERSEAS Review: Australia
Quest on William, Melbourne (Quest Serviced Apartments)
Melbourne has benefited from massive investment in recent years and, despite global economic woes, remains a major business centre for the manufacturing, finance, pharmaceutical and oil sectors.
Quest has exploited a gap in the market, opening 10 serviced apartment properties in the city to provide a more flexible and cost-effective alternative to four-star hotels.
One of the best-located is Quest on William, in the heart of the central business district. It couldn't be much closer to commercial life, while good shops and cracking bars and restaurants (try the historic Mitre Tavern and excellent Syracuse restaurant) are just a short stroll away.
Quest's spacious, air-conditioned three-bedroom apartment, called a 'townhouse', was on the top (14th floor) of the modern development, with views across the domed roof of the grand Victorian law courts and along William Street to Flagstaff Gardens.
It had two en suite double bedrooms upstairs and a smaller double downstairs. The good-sized (450ft2) lounge area provided sofa seating for seven people, and there were large picture windows on two sides with a door leading on to a wide private terrace.
The kitchen area was well-equipped and the separate utility room's washing machine and dryer proved useful.
Reception staff were welcoming and helpful during our visit. They can book a grocery service, or local restaurants will deliver - particularly handy if you're planning some stylish business entertaining on that splendid terrace.
Cost: Prices from October start at A$180 (£90) for a one-bedroom apartment and A$340 (£170) for a three-bedroom.
Reservations: 0061 (03) 9605 2222; www.questonwilliam.com.au
Review: Edinburgh
2 North Charlotte Street, Edinburgh (Charlotte Square Apartments)
These apartments make perfect sense for two business people (or two couples) sharing, as the two-bedroom apartments are keenly priced yet only five minutes' walk from the western end of Princes Street. I did face one major problem however - my apartment was on the top floor up 72 steps, with no lift. As you check-in at a separate address half a mile away, you could struggle, especially if you're alone with lots of luggage.
Charlotte Square dates from around 1800, and around the corner is the National Trust's Georgian House. My apartment had all the modern amenities while retaining the high ceilings (and replica fireplaces) of a much older building. It occupied the whole of the top floor and was enormous, with two large en suite bedrooms and a kitchen/diner big enough to be two separate rooms.
You really feel on your own here, which may or may not suit you - but there are plenty of bars, restaurants and shops within easy walking distance. But I had to watch what I ate, as the idea of tackling 72 steps after a big supper wasn't too appealing.
Cost: Two-bedroom apartments are from £140 a night and are usually let for a minimum of three nights. One-bedroom apartments (from £80) are available at another nearby address.
Reservations: 0131 240 0080; www.charlottesquareapartments.com
Review: London
Plaza on the River, Albert Embankment, London (Select Apartments)
There's absolutely no doubt that the views from some of these apartments are among the best in the capital, especially if you're facing towards the Houses of Parliament and the London Eye. But even if you don't have a view, there are good reasons to stay here.
You have all the space and luxury fittings you need for a long stay, but with access to hotel services if you need them. The Park Plaza Riverbank hotel is part of the same complex, but with a separate reception. They share a club lounge and the Chino Latino Brasserie, a pan-Asian restaurant with a growing reputation that's open for breakfast, lunch and dinner. Having that on site is a big advantage as there isn't much else within walking distance, the Plaza being on the south bank roughly halfway between Waterloo and Vauxhall Bridge.
Apartments are sleek and contemporary in design, and those facing the river have a balcony. Picture windows and polished floors add to the effect, and a state-of-the-art entertainment system plays films and music on demand. It's a pity if you have to do any work.
Cost: Rates start at £306.48 per night for restricted view, with a one-bedroom suite with Houses of Parliament view costing £626.18. There is no minimum stay.
Reservations: 0845 055 6352; www.selectapartments.co.uk