What is a serviced apartment? Small property owner’s guide

What is a serviced apartment?

Serviced apartments are a type of accommodation that combines home comforts with hotel-style servicing and amenities, allowing travellers to enjoy a comfortable, extended stay.

Also known as extended stay apartments and corporate housing, these accommodation options are popular for both business and leisure travellers who are generally looking for a place to settle down for a while, where they can work, relax, do their own laundry and cook their own meals.

What does ‘serviced apartment’ mean? Simply that these apartments are serviced like a hotel room, with regular cleaning, and access to hotel help like front desk and concierge services.

What is the difference between a serviced apartment and a hotel?

The primary difference between serviced apartments and hotel rooms is in-room amenities. Serviced apartments generally offer laundry, kitchen and other home-style facilities.

Taking this serviced apartment definition, let’s take a closer look at exactly how a property owner can run this type of accommodation effectively.

Why serviced apartments matter for small property owners

Powered by homestay platforms like Airbnb and Vrbo, the demand for serviced apartments is growing quickly. But as a property owner you might be wondering: are serviced apartments a threat, or an opportunity? A strategic approach can ensure it’s the latter.

Who uses serviced apartments?

Serviced apartments are popular with business travellers, workers on temporary assignments, digital nomads, relocating families and long-term holidaymakers.

Are serviced apartments taking your potential guests?

Many guests who used to book small hotels for long stays now prefer serviced apartments for the homely feel and the extra amenities. If you exclusively offer hotel rooms, it could be worth adding a serviced apartment option to your room inventory to capture this market.

Should you adapt your rental model to stay competitive?

Serviced apartments will often have a cheaper rate for longer stays – book six nights, get one free, 30% off for month-long bookings – due to the lower effort and upkeep involved. And yes, it could be worth doing the same in your hotel to secure more of these bookings.

What is included in a serviced apartment

Serviced apartments differentiate themselves from hotel rooms in a few key ways. Here’s how.

What are the amenities of serviced apartments

Serviced apartments typically offer a wide range of amenities, including fully equipped kitchen facilities, comfortable furnishings, regular cleaning and housekeeping, laundry services, Wi-Fi, full bathroom amenities, security, concierge services, parking and sometimes additional features like gyms and business centres.

Luxury serviced apartments vs standard service apartments

In luxury serviced apartments, you might find premium kitchen equipment, designer furnishings, spa facilities, personalised concierge services, state-of-the-art entertainment systems, exclusive access to events, daily housekeeping, luxury bathroom amenities, enhanced security, and private outdoor spaces like terraces or rooftop gardens.

Studio serviced apartments vs full-service apartments

Studio serviced apartments are more compact, single-room versions of full service apartments, but still include most of the apartment-style amenities.

What are the benefits of serviced apartments for small property owners?

By offering serviced apartment lodgings, small property owners can capitalise on a stable yet adaptable business model that minimises costs and maximises profitability.

Lower operational costs

With guests typically staying for longer periods, you’ll face fewer turnovers, meaning reduced cleaning and maintenance costs, and potentially lower expenditure on in-room consumables.

Consistent occupancy

Extended stays offer revenue stability. Tenants often book for weeks or months at a time, providing a steady stream of income and reducing vacancies during low season, mid-week lulls and other slow periods.

Higher-value guests

Business travellers, migrants and digital nomads are more likely to choose serviced apartments than hotel rooms, granting you access to long-term guests who are often willing to pay more, and who are less prone to seasonal fluctuations.

A serviced apartment in Koh Samui, Long N Joy used Little Hotelier to secure more long-term and short-term bookings at the best possible rates.

Flexible pricing strategies

By mixing short- and long-term stays, you can adjust pricing based on demand, allowing you to maximise revenue during peak periods and maximise bookings during low periods.

“My only regret about Little Hotelier is that I didn’t use it sooner. It blows my mind how powerful it is, it makes my life so much easier. Little Hotelier frees up my time so I actually can grow my business.”

Sean O’Neill,

Owner

Devereux Residences

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Serviced accommodation strategies to win more bookings & maximise revenue

You’re keen to capitalise on the wealth of perks that come with offering serviced apartments. But how? The following strategies are a great place to start.

Smart pricing

Tools like Little Hotelier Insights help ensure that the rates for your serviced apartments are always based on real-time market data, allowing you to maximise revenue.

Optimise listings

Make your serviced apartments stand out. Use professional photography, compelling headlines and detailed descriptions on platforms like Booking.com, Expedia, Airbnb and your direct booking website.

Diversified booking channels

Think beyond the classic booking channels, to other, less conventional reservation sources:

• Direct bookings: Cut out the OTA intermediary (and their sky-high 15-25% fees) by crafting a website with a booking engine that allows a guest to book directly with you.
• Corporate partnerships: Offer alluring deals to companies looking for accommodation for travelling workers.
• Extended-stay platforms: Attract long-term guests by joining platforms that specialise in long-term stays, or by partnering with relocation agencies.

Offer add-ons & upsell

Add value to a guest’s stay, and maximise revenue, by offering:

• Premium services: Offer airport transfers, meal deliveries, laundry services, guided tours and day spa packages.
• Corporate amenities: Consider hiring out workspaces and meeting rooms, and making your property available for conferences and networking events.
• Loyalty discounts: Introduce membership programs or packages for frequent guests.

Manage reputation & encourage reviews

With 81% of guests always checking reviews before booking a stay, reputation is everything in the hotel industry. You can enhance yours by actively soliciting reviews from happy guests when they check out, responding to any negative reviews quickly and fairly, and highlighting positive testimonials to build credibility and win more bookings in the future.

Another way to win more bookings as a service apartment provider? Implement solutions that streamline, optimise and enhance the way you run your business – a tool like Little Hotelier.