28/02/2008

Bad news could be good news for serviced accommodation providers

A serviced-accommodation industry insider, Steve Brenman, managing director of the London-based serviced apartment provider Deep Blue Apartments, is keen to point out the value of serviced accommodation during periods of crisis.

“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.”

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