ON BUSINESS OR TEMPORARILY IN-BETWEEN TWO LOCATIONS.
“Globally, one third of all business travel room nights are part of an extended stay.
It is even higher in the Middle East, where it is close to 40 percent and yet, there are no hotel brands with a meaningful distribution catering to the longer stay need,” said Diane Mayer, global brand manager, Marriott Executive, Marriott International.
To this end, the hospitality giant outlined ambitious plans for the Middle East with a particular focus on the extended stay segment, where new offerings are being designed for travellers who seek balance on the road range with large suites and upscale amenities.
And the list of hotel chains keen on jumping on the bandwagon keeps growing.
Originally developed in the US, the serviced apartment concept has been designed with long-stay guests’ requirements in mind to provide them with all the facilities and amenities that they use on a daily basis at home.
Propelled by the Middle East’s astonishing development in recent times, the segment has gained notable ground over the years with globally trusted names taking over the market from the initially privately owned and managed properties.
In fact, according to Colliers International, by October 2015, internationally branded serviced apartments made up over 40 percent of the total supply in mature markets such as Dubai, Abu Dhabi and Doha, and experts claim that the Middle East and Africa region is still in a growth phase, boasting a fertile ground for investors and developers.
“In the past few years, we have witnessed a positive trend and an increased demand for hotel apartments. This is mainly due to the need of the market [relating to] new developments and projects, especially here in the UAE,” analysed Chadi Nicolas, general manager, Hala Arjaan by Rotana, Abu Dhabi, suggesting that the trend is likely to continue for the years ahead with new ventures and large-scale events coming up.
“There is a tremendous growth in this segment,” concurred Moussa El Hayek, chief operating officer, Al Bustan Centre & Residence, Dubai, saying that in Dubai, for instance, the trend is bound to continue as the emirate accelerates its preparations to welcome an anticipated 20 million visitors by 2020, who will easily fill the projected 17,000 rooms that are set to come online over the next five years, as forecasted by Jones Lang LaSalle.
In fact, due to its appeal to not only tourists but also businessmen and career-oriented talents, Dubai boasts the highest number of serviced apartments in the Middle East followed by Riyadh, as per Colliers International’s data.
The model of these establishments, however, varies greatly; whereas in Dubai international players are adding their names to the projects, elsewhere the market is still dominated by locally branded or unbranded addresses.
As Samir Arora, cluster general manager, Hawthorn Suites by Wyndham Jumeirah Beach Residence and Ramada Downtown Dubai, noted, in Dubai too, hotel apartments mostly represent local brands with a few international names having already entered the market, with Hawthorn Suites by Wyndham being one of these. However, times are changing.
“Dubai used to be all about the luxury brands, but now, we are seeing a shift in terms of midmarket [accommodation],” suggested Arora. “We might see new international brands of hotel apartments coming in, should there be a higher demand for this accommodation.”
