The Rise of Serviced Apartmentsin the United Kingdom

In today’s global economy, businesstravel and mobility increasingly arebecoming a more common part of

life. It is fair to say that in the UnitedKingdom (UK), hotels traditionallyhave dominated as the primary choiceof accommodation for business travel-ers, despite the arduous process of liv-ing out of a suitcase and orderingroom service. However, during thepast few years, travelers have becomemore aware of the options available tothem, and corporate housing or ser-viced apartments (as they are knownwithin the UK), have emerged as aprominent alternative.

With a focus on comfort, lifestyle,and value for money, serviced apart-ments are becoming increasinglypopular with the corporate world.Businesspeople on both short-termand extended business trips or fami-lies relocating to the UK have foundtheir needs better satisfied in themore relaxed environment providedby serviced apartments.

George Westwell, director ofCheval Residences, agrees: “Whilefactors that have always been key—such as location and accessibility—arestill just as important, the net hasnow been widened to incorporatemany more elements, for example,the level of privacy offered, the spaceprovided, and the flexibility of thelifestyle.”

Despite the global recession, whichforced many companies to cut backon travel expenses, between the years2005 and 2010, serviced apartmentsconsistently outperformed hotels withoccupancies at 87 percent—comparedto 80 percent for hotels. The latestfigures released from the Associationof Serviced Apartment Providers(ASAP) also reveal an excellent begin-ning to 2011, with an average of 79percent occupancy in London.

Value for MoneyThese figures are a testament to

the fact that serviced apartments have

garnered the reputation of providingexcellent value for money—a majorconsideration for corporations in thecurrent economic climate. A “priceper square foot” comparison of five-star London hotels with top-end ser-viced apartments reveals an astonish-ing discrepancy. Moreover, whenbroken down to room rates for a sin-gle night (although many apartmentshave a minimum stay of seven days)the savings that can be made areobvious.

Recognizable Option The recent surge in popularity of

serviced apartments can be explainedpartly by the increased visibility andunderstanding of the sector. Peopleare beginning to distinguish betweenserviced apartments and otheraccommodation solutions, and aremore aware of the choices that areavailable to them. This clarity hasbeen driven largely by VisitBritain,the tourist board of Great Britain,

B Y A L I S O N H U L L

Corporate housing, or serviced apartments as this business is referred to in the United Kingdom, is emerging rapidly as the leading choice of accommodation for talent on the go. Hull offers anoverview of why many assignees and business travelers are opting for serviced apartments.

84 MOBILITY/JULY 2011

hull_MOBILITY 6/10/11 2:58 PM Page 2

MOBILITY/JULY 2011 85

introducing a grading system for ser-viced apartments. The grading systemfor serviced apartments looks at simi-lar criteria as the hotel industry,which is graded by the “star system.”Apartments are graded according togeneral fixtures and fittings, arrivalprocess, handling of reservations,cleanliness, and general services.

BridgeStreet, a major servicedapartment provider in London, hasgraded properties within its own port-folio and now offers 3-star, 4-star,and 5-star properties. The separatetiers provide more distinction andallow consumers an even clearerchoice. 3-star properties providebasic, practical convenience while 4-star properties, which make up themajority of BridgeStreet’s portfolio,encompass more comfort and addi-tional services and are a popularchoice with relocating families.Cheval Residences, which says it rep-resents the top-tier of the market, also

has recognized the importanceof developing greater clarityfor their brand, where inJune 2010 “The ChevalGroup” became “ChevalResidences.” Westwell

surmised: “The term‘residences’ is

more

global andgives a clearermessage to ourconsumers. Weare on the cusp ofcompleting the newbrand standards andhave started a trainingacademy for staff, whichprovides both physical and e-learning to ensure consistency inall brand messages.”

The development of ASAP in2002 also has been a massive boostto the industry, helping to promote,clarify, and develop serviced apart-ments throughout the UK and inter-nationally. At present, there are 44registered members representing inexcess of 7,500 properties, which arecommitted to providing standards ofquality and driving forward the devel-opment of the industry.

Taking steps toward demystifying

the serviced apartment sector hasresulted in obvious successes amongguests and have been hailed by all inthe industry. Sales and marketingexecutives now have a much simplertask in promoting and differentiatingtheir products, and the process ofbooking accommodations hasbecome clearer for HR departments

as well as individuals.

2012 Summer OlympicsAlthough hotels will

be gleefully anticipatingan influx of tourists inthe upcoming 2012

Olympics, serviced apart-ments, on the other hand,are viewing the “temporary

phenomenon” with lessimportance. Bridge -

Street has beenworking with theLondon

OrganizingCommittee of the

Olympic Games (LOCOG) to anextent, but admits it is far more inter-ested in developing its ongoing rela-tionships with clients, and aims toprovide the same service to its loyalcustomer base throughout this peri-od. Similarly, Cheval Residences saidits existing client base is more impor-tant, and declined to go down theLOCOG route. In fact, serviced

hull_MOBILITY 6/10/11 2:58 PM Page 3

apartments are expecting many oftheir normal customers to avoid thecapital during this frantic time andreturn to places such as Hong Kongor New York instead.

An interesting survey by ChevalPhoenix House of 1,400 guestsrevealed an insight as to the topgroups who opt for serviced apart-ments. The driving customer basewas business travel (32 percent) andmobility (16 percent). There alsowere a large proportion of generalleisure travelers (22 percent).However, the other main groupsidentified included celebrities wish-ing to remain incognito (7 percent),overseas students (7 percent), guestsrequiring accommodation whiletheir own homes were refurbished (7percent), and even people seeking

rehabilitation following plasticsurgery (1 percent).

Looking Forward-ExpansionThe demand for serviced accom-

modation is clearly on the rise, andproviders are responding by develop-ing and extending their portfolios.Construction on Cheval Three Quayswill begin in summer 2011, and willincorporate 158 new apartments.Skyline Worldwide Accommodationsalso will be taking on an additional20 units in the London during thefirst half of 2011.

While serviced apartments in theUK are largely London-centric, thereis an ever-growing presence in largercities such as Glasgow, Edinburgh,and Manchester. However, in moreregional areas such as East Berkshire,

demand is clearly growing as corpo-rate clients and their employeesbecome more enlightened about thepositive benefits of serviced accom-modation.

With so much choice, how do youknow you when you have found theright solution for your accommoda-tion needs? Providing you haveresearched, asked the right questions,and ensured you would be gettingthe right services: go with yourinstincts, as they are rarely wrong.

One thing that is guaranteed, once you have experienced the bene-fits of staying in a serviced apartmentyou will never want to stay anywhereelse.

86 MOBILITY/JULY 2011

Experience MattersCall: +44 (0) 20 8944 1444 or visit: www.apartmentservice.com

We’ll bend over backwards

when it comes to helping you find short-term

accommodation for your clients.

Whether you are managing a small or a large relocation assignment, as the largest European provider of quality serviced apartments for both individuals and corporate groups, we are perfectly placed to help you find the right housing solution.

Alison Hull is managing director with LuxePublic Relations, London, United Kingdom.She can be reached at +44 (0)20 7313 4501or e-mail alison@luxepr.com.

hull_MOBILITY 6/10/11 2:59 PM Page 4