OUTLOOK FOR SERVICED APARTMENT SECTOR IS POSITIVE, WHILE HOTEL OCCUPANCY MAY SLIDE IN A SLOWDOWN.
Despite mounting recessionary fears in the wake of the recent credit crisis, a leading industry figure declared today the outlook for the serviced apartment sector is positive.
[UKPRwire, Mon Feb 25 2008] Steve Brenman, managing director of the London-based serviced apartment provider Deep Blue Apartments, spoke confidently about the superior value of serviced accommodation during periods of market uncertainty.
“In times of financial uncertainty, many international companies move quickly to reduce their variable overheads. Discretionary costs, such as international travel and accommodation, are quickly scaled-back.”
Such a situation would, at first glance, appear to work against apartment providers who count business travellers among their most coveted clients. However, as Brenman argues, the serviced apartment industry is uniquely positioned to benefit.
“In the midst of stagnating markets, companies require cost-effective accommodation when sending their employees either nationally or internationally. This is where serviced apartments really excel. A typical serviced apartment offers up to 50% more space than a hotel room, but often at 30-50% less cost. Not only do companies save money but they ensure a more comfortable stay for their staff.”
With ten year’s experience at the helm of Deep Blue Apartments, Brenman has seen the value of serviced accommodation proved repeatedly. Having seen Deep Blue through the dotcom bust in the late 1990s and the international travel slowdown in the wake of September 11th 2001, Brenman believes the industry will come through the current crisis relatively unscathed: “In my experience, serviced accommodation can prosper regardless of the position of the economy in its cycle. With a focus on well-maintained apartments in convenient locations, apartment providers can offer modern accommodation to suit even the tightest of budgets.”
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