The comfort of home The ease of a hotel.... Imagine you are an exchange student.. Hotels, Hostels or...
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Transcript of The comfort of home The ease of a hotel.... Imagine you are an exchange student.. Hotels, Hostels or...
Imagine you are an exchange student..
Hotels, Hostels or Conventional
Apartment?What do you want
from your accommodation?
Hotels
Hotel
Flexibility of stay √
Furniture provided √
Utilities provided √
Everyday housekeeeping service √
Daily necessities provided √
24 hours concierge √24 hours Room service √
Conventional Apartments
Conventional Apartment
Spacious √
Home feeling √
D.I.Y decorations √
High privacy √
Extracts from Advertisements
A true home, away from home - Treasure View
A home with remarkable level of sophistication and elegance...provide a comfortable home ... creates a home ... - Pacific Apartment
Walking into each apartment, guests immediately feel at home. - Ovolo
Hypothesis
Serviced apartments combine the attributes of private homes and hotels. An alternative housing option to highly occupied workforces who have little time to relax and deal with housekeeping and therefore demand the services and convenience that conventional high quality hotels provide, while still wanting to maintain the feeling of home at the same time.
Flow of Content
Background information of Serviced Apartments (SA)
Reasons of choosing SA
Summary and Analysis
ProspectConclusion
Types of Serviced ApartmentPremium S.A.• $70,000/mth or above for a
single room
Budgeted S.A• $20,000/mth or below for a
single room
The Lily, Repulse Bay YWCA, the Lodge, Kowloon Tong
What Serviced Apartment actually is?1. Furniture provided
2. Housekeeping or Maid service
4. Basic Utilities provided
Internet, water, electricity, gas and etc.
5. Kitchen
Background information
1980s
• The concept of serviced apartment was created in the United States• Hotel’s service and Apartment’s management • Originally for rent to tourists
1990s
• Serviced Apartments were introduced in Hong Kong
Customers Profile – NORMAL
Business expatri-
ates, 65%
Travelers, 13%
Local fam-ilies, 17%
Student, 5%
Characteristics of SA – 7Ps
• Price:
Premium: priced at prestige
• Pacific Place Apartments:• $72,000 – 200,000 per month
Normal: priced at functionalities
• YWCA : $8,600 – 16,000 per month
Kowloon City and Wong Tai Sin
Price/month: $11300 - $17188
Eastern
Price/month: $18066 - $40949
Yau Tsim Mong
Price/month: $14632 - $26964
Central and Western
Price/month:
$25744 - $51550
Wan Chai
Price/month: $15070 - $26535
Characteristics of SA – 7Ps
Place:
• Mainly Central Business District• e.g.: Central, Admiralty, North Point, Tsim Sha Tsui
Promotion:
• Articles, Internet, newspaper advertisement, Word-of-mouth• Discount depends on the rental period
People:
• Receptionists, cleaning workers, salespersons, security guards, training staff
Characteristics of SA – 7Ps
Process:
• Enquiry, confirm booking, check-in, check out
Physical evidence:
• Employees’ uniform, good security, privacy policy, quality guarantee, furniture, design, facilities, location, tidiness
IntervieweesPacific Place Apartments, Admiralty
• Premium serviced apartments
The Lodge, YWCA (Young Women Christian Association), Kowloon Tong
• Budgeted serviced apartments
Yesinn Space Serviced Apartments, Tai Kok Tsui
• Budgeted serviced apartments
Colliers International, Wan Chai
• Property agency
Case Study Scenario
Nationality •Dutch
Occupation •Master student
Reason for coming •Exchange
Budget for accommodation in HK
•HKD$7,000 per person
Location of accommodation required
•Tsim Sha Tsui District
How they evaluate and pick a SA?(Couple)
• Price (holding everything constant and if they live there for more than 1 month)
Serviced Apartments
An apartment: $14,000/ (Hillwood Vista)
Hotels Single room: $52,500 (Gateway Hong Kong Macro Polo Hotels)
How they evaluate and pick a SA?(Couple)
• Price (holding everything constant and if they live there for more than 1 month)
Monthly Rental Price per square feet
Serviced Apartments
Single room at 500 ft.$14,000 (Hillwood Vista)
$28.0 per square feet
Conventional Apartments
Flat at 450 ft.: $9,500 (Hanley Mansion) $21.8 per square feet
How they evaluate and pick a SA?(Couple)
• Location and transportation (Situated at Tsim Sha Tsui district and with desirable price range: $14,000 per month)
Serviced Apartments Near campus and central area
Hotels Too far away from campus and central area
Conventional Apartments Near campus and central area
How they evaluate and pick a SA?(Couple)
• Size of Area (Situated at Tsim Sha Tsui district and with desirable price range: $14,000 per month)
Serviced Apartments About 500 sq. ft.
Hotels About 350 sq. ft.
Conventional Apartments About 450 sq. ft.
How they evaluate and pick a SA?(Couple)
• Feeling of home
Serviced Apartments
- With kitchen- Pleasant home decoration - Home design
Hotels- No kitchen- No home decoration- Room designed for travelers
Conventional Apartments
- No furniture- Not furnished- No decoration
How they evaluate and pick a SA?(Couple)
• Service
Serviced Apartments With housekeeping once per week
Hotels With Housekeeping everyday
Conventional Apartments Without housekeeping
Why Serviced Apartments?(Business Expatriates)
• Rental Period
Serviced Apartments
Minimum: 28 days (required by regulations)Tenancy length: 75% - less than six months
Hotels No restriction
Conventional Apartments
Minimum: 1 year(normal practice)
Why Serviced Apartments?(Business Expatriates)
• Resource Allocation of Company
Serviced Apartments Bridge the gap
Hotels Cost too much
Conventional Apartments
High property priceLow utilization rate: 3-4 month per year-> No longer hold residential properties
Why Serviced Apartments?(Business Expatriates)
• ServiceHousekeeping Room Service
Serviced Apartments
- Premium: everyday- Normal: 1-2 time(s) per week
- Premium: anytime- Normal: none
Hotels - Everyday - Anytime
Conventional Apartments - None - None
YES, 90%
N/A, 10% YES, 12%
N/A, 88%
Why Serviced Apartments?(Business Expatriates)
• ServiceEngineering Team Laundry
Serviced Apartments
- Premium: 7 days a week- Normal: 5 working days a week
- Premium: free- Normal: once a week / extra payment
Hotels - 24-hour - Extra payment
Conventional Apartments - Arranged by tenants - Arranged by tenants
YES, 10%
N/A, 90%
YES, 54%
N/A, 46%
Why Serviced Apartments?(Business Expatriates)
• ServiceInternet Utilities
(Water, electricity, gas)
Serviced Apartments - Included in rental payment - Included in rental payment
Hotels- Premium: included in rental payment- Normal: Extra payment
- Included in rental payment
Conventional Apartments
- Registered and paid by tenants - Paid by tenants
YES, 87%
N/
A, 13%
YES, 87%
N/
A, 13%
Why Serviced Apartments?(Business Expatriates)
• Features
Serviced Apartments
- Comfortable working area- More decorations- Unique design- Fully furnished- With kitchen and refrigerator- Some with washing and drying machines
Hotels
- Fully furnished- Without kitchen- Uniform and standard- Clean and tidy- White color in major for bedding
Conventional Apartments
- Probably not be furnished- Designed by tenants
Why Serviced Apartments?(Business Expatriates)
• Privacy
Serviced Apartments Higher privacy
Hotels Lower privacy
Conventional Apartments Higher privacy
Why Serviced Apartments?(Business Expatriates)
• Facilities
- Some provide the best facilities in the town
Four Seasons Place • Jacuzzi• Heated swimming pool at 59th
floor with fantastic view• Spa• Comprehensive gym room
Why Serviced Apartments?(Business Expatriates)
• Facilities•swim
ming pool, fitness center
Some provide the basic facilities
•Pacific Place Apartments share facilities with Conrad Hong Kong
Some share facilities with related hotel
Other findings and analysis
• Less service• Toiletries are not provided• Only weekly housekeeping services
Why serviced apartment is cheaper?
Other findings and analysis
• Minimum stay period (Managerial side)
Hotel
• Flexible tenancy terms• Higher cost for high
daily turnover• High cost for
hotel/guesthouses license
Serviced apartment
• Lower cost for low daily turnover
• Not regulated by Hotel and Guesthouse Accommodation Ordinance
A "hotel" and "guesthouse" mean any premises being held out in which sleeping
accommodation is provided for any person presenting himself who appears able and
willing to pay a reasonable sum for the services and facilities provided for a period of less than
28 continuous days.
Other findings and analysis
• Minimum stay period (Tenant side)
Hotel
• Flexible tenancy terms
• High rental
Conventional apartment
• Inflexible tenancy with long tenancy terms
• Usually 1 year fixed term and option to renew for another 1 year
Serviced apartment
• Quite flexible for short to mid-term stay with low rental
Other findings and analysis
Make simple food rather than full meal
BusyUtensils are not
enough for making full meal
Dining in Hong Kong is very
cheap
High utilization rate
Most have self-catering facilities
Other findings and analysis
Some arrange activities among tenants
Barbeque, hiking etc.
Home-like decorations
e.g. Wall paintings Home-like design
e.g. Light color wall, Kitchen
Prospect and Analysis
Current
Target customers:
Foreign business travelers
Business is still growing
Prospect and AnalysisFuture
Target customers:
Foreign business travelers
Optimistic:
Fulfill the gap between long term and short term stay
Other customers markets:
- Local families
- Medical tourism from Mainland China
Conclusion
A new type of choice
Meets the needs of people who lead a busy life
More time to work and relax
Main selling points are price and services
Conclusion
Large working area, instant broadband, fax etc
Fulfill the need of short to mid term business assigments
Kitchen, home feeling and other facilities are bonuses
Limitations
Limited number of respondents
Managers are not willing to provide detailed figures
Respondents mainly from the managerial side, may not truly represent the view of residents
No business residents are interviewed
Limited academic literatures for references
References• Hong Kong Property Market Overview. Rep. Hong Kong: Colliers International, July 2010.
Print.• Global Serviced Apartment Industry Report 2010. Rep. Apartment Service Worldwide. Web.• Hong Kong Serviced Apartment Market Update. Rep. CB Richard Ellis, 2006. Print.• Foxley, Sue. "Practice Paper: Serviced Apartments in the UK - a Growth Sector?" Journal of
Property Investment & Finance 19.1 (2001). Web.• Turner, Sara. "Feels Like Home." Business Traveller (UK/Europe Edition) Apr. 2010: 42. Web.• Chang, Gary. Hotel as Home. [Hong Kong]: MCCM Creations, 2005. Print.• Freitas, Ferstad Corrine, and Union Institute and University. A Sense of Home: What
Constitutes a Sense of Home and Community for Pre-adolescent and Adolescent Youth Living in International Transition? Vol. 63-03. Dissertation Abstracts International. Web.
• Hart, Mechthild U., and Miriam Ben-Yoseph. Psychological, Political, and Cultural Meanings of Home. New York: Haworth, 2005. Print.
• Gaard, Greta Claire. The Nature of Home: Taking Root in a Place. Tucson: University of Arizona, 2007. Print.