It’s a question more and more business travellers are beginning to ask: is it worth staying in a cookie-cutter hotel room when a serviced apartment that is double its size is available for up to 30% cheaper? The answer rarely favours hotels. This explains why the serviced apartments business has been growing at 15-20% annually compared to a modest 6-8% notched by hotels.
However, the battle between the two is far from over. In a bid to compete with serviced apartments, several luxury hotels have begun offering a similar facility to guests who want to stay for long durations (see table). Only, they are doing it better, or, at least, with more style.
The new concept, which took off nearly five years ago, is called a residence or an executive apartment. The spread ranges from studios to four-bedroom penthouses, all packed with the comforts of home. Think kitchens stocked with everything from dishes to dishwashers, home theatre systems, free-touse utility areas equipped with washing machines and irons, and daily housekeeping. Not to mention the state-of-the-art gyms.
So how is it different from any local luxury serviced flat that offers all these facilities? Is it worth paying extra just for the brand name? The answer lies in the hotels’ attention to detail. Imagine having someone drop by to walk your pet, baby-sit your children, even buy the groceries while you relax by the pool or get an aromatherapy massage at the in-house spa and your spouse sweats it out on the tennis court. Besides, hotel residences offer multiple food and beverage options on the premises, which no serviced apartment can.
Is it worth shelling out double the tariff for a standard apartment just to have Jeeves in place of Jeetu, the cook-cum-cleaner? To be honest, it does not. Not if you are a penny-pinching leisure traveller. However, as a business traveller requiring access to a conference room, secretarial services or even banquet facilities, these luxury residences are your best bet. It works out cheaper for the company too. Take the Taj Group. The per night rate for a double room at the hotel is about Rs 15,000, which amounts to Rs 4.5 lakh for a month’s stay. Staying at the Wellington Mews, the residences, is cheaper by Rs 1 lakh.
Says Anil Madhok, managing director, Sarovar Hotels: “We foresee a huge increase in demand in the extended stay market.” No wonder the trend is now trickling down to the three-star category. The Sarovar Group is set to launch its first apartment hotel in Ghaziabad. With realty giants like Parsvnath entering the fray, things are bound to become more competitive. Much to the advantage of travellers.
