Demand up for serviced apartments in GCC

Dubai - Extended stay and multi-generational family travel change visitor preferences.

There is a notable shortage in the number of serviced apartments in the GCC region. This needs to be addressed as travellers increasingly look to travel for longer periods of time with their families, hospitality experts have said.
"In recent years, the serviced apartment sub-sector of the hospitality industry has grown faster than any other class of temporary accommodation in the region," Amruda Nair, joint managing director and CEO of Aiana Hotels & Resorts, told Khaleej Times during a recent meeting in Dubai.
"It is a younger audience that usually prefers to stay in serviced apartments. We have noticed this particularly with young Indian families who travel to the Middle East. They travel with children and prefer to stay between four to six days to see all the attractions, as opposed to a couple who usually ends up spending a weekend at a retreat.
"You also see this trend of families moving within the GCC, typically over long weekends and public holidays. A serviced apartment has all the amenities that will make your stay with a family more comfortable, such as pantry and laundry facilities," she explained.
Another trend that Nair highlighted was multi-generational travel, where up to three generations of a family will travel for a vacation. For them, there is a greater comfort in staying at a serviced apartment as compared to a hotel room, she said.
Family attractions
With the recent shift in focus to expanding the UAE's family leisure attractions, the need for more serviced apartments is being felt more than ever. Dubai's ever increasing number of family-friendly theme parks and outdoor adventures and festivals are drawing an increasing number of travellers to the region for extended periods of time. Nair was certain that demand for serviced apartments will continue to rise in the coming years.
"In terms of serviced apartments, you see a lot of international players coming in, because it is clear that there aren't enough serviced apartments in the region. In Doha, for example, the trend is still slightly skewed towards catering to business travellers. So even today, serviced apartments are focused on attracting people who are in transit or working on their induction period before they find a permanent residence. Catering to leisure travellers, on the other hand, demands that you have a whole different set of amenities ready. This is what is lacking on the supply side," she added.
"From an investment perspective, the yield that you get from a serviced apartment is far greater than a hotel room. The serviced apartment model is a hybrid model that gives you the best of both worlds; you can pitch them to different types of travellers. From a real estate perspective, given the current market supply situation, there is definitely an immediate need for them," Nair said.
Guest expectations
Nair also talked of how guests today are looking for customisation and destination-specific travel experiences. "The Aiana approach to meet the changing trends in guest expectations is service that is unscripted to create moments that surprise and delight. Our service ethos, rooted in Indian cultural values of warmth and intuition, fits with the millennial mindset that requires real-time adaptability and immediate response," she said.
Asked about Aiana Hotels' expansion plans, Nair said the group was already constructing a 38-storey development with 180 keys in Doha. "The project will be ready by the end of 2016. By 2017, we will make more announcements. We are looking very actively at KSA, where our next property will be, followed by a possible development in the UAE."
- rohma@khaleejtimes.com

• MENA