Australia
While Europe and the US continue to struggle with severe economic challenges, Australia recorded its 21st continuous year of economic growth – and this year is expected to be the 22nd. According to Invest Victoria, this achievement has been driven by the country’s trade with Asia, its mining industry and government initiatives. Each of the first three quarters of the 2011/2012 Australian financial year reported positive economic growth of 1 per cent, 1 per cent and 0.9 per cent respectively, according to the Australian Bureau of Statistics.
Fraser Place Melbourne
Having opened Fraser Suites Perth in October, Singapore-based serviced apartment provider Frasers Hospitality expanded its Australian portfolio to three with this property (Fraser Suites Sydney being the other).
Choe Peng Sum, the group’s chief executive, said, “The country is expected to see an increase in international traveller stays by an average annual rate of 3.8 per cent up till 2014, driving a demand for premium serviced residences.”
Opening date: November 2012.
Number of units: 112 studio-style apartments with integrated living, dining and kitchen areas.
Location: The property is located about 1km east of Melbourne Central Station, within the city’s main financial and business district. The surrounding area is home to the headquarters of mining companies BHP Billiton and Rio Tinto Group, along with the offices of ANZ and NAB banks and the Telstra telecommunications company.
Room facilities: Each apartment has a large work desk, home entertainment system with iPod and iPhone docking, and high-speed internet access. The kitchens are equipped with fridges, microwave ovens and hobs, plus dishwashers. There is a steam iron and ironing board in each apartment and some also have washing machines and dryers. Laundry and dry-cleaning services are also available for an
extra charge.
Other facilities: There is an onsite gym and cafeteria. The building provides housekeeping, reception, security and concierge services.
Bonus points: The property also offers sightseeing tours of the city
for a fee.
www.frasershospitality.com
China
This fast-growing economy, the second largest in the world, has seemed invincible in recent years, but mighty though it is, it wasn’t immune to the 2008 global financial crisis, experiencing a seven-quarter slowdown caused by weak external demand and cooling property investment. However, in the fourth quarter last year growth picked up again to 7.9 per cent. Small and medium-sized businesses are thriving, according to the China Association of Small and Medium Enterprises, which pointed to the SME development index and the country’s profit index having grown for the first three months this year by 4.4 points, to 95.2 and 76.7 respectively.
The One Executive Suites – Shanghai
This property is Germany-based Kempinski’s entry into Shanghai, China’s premier commercial hub. It is also the latest addition to the group’s portfolio of luxury serviced residences that include Beijing, Jakarta, Bangkok, Doha, Dubai, Istanbul, Geneva and St Moritz.
Opening date: February 2012.
Number of units: 224 units in one-, two- and three-bedroom configurations, with the largest category at 300 sqm.
Location: In the key district of Jing’an, where a slew of mega commercial-retail projects are under development.
Room facilities: All have separate bedroom and living room areas, as well as heated floors for winter
and balconies.
Other facilities: Wifi is available in the public areas and guest apartments.
Bonus points: Unlike many serviced residence properties that have limited food and beverage options, this one offers three options: Suyang Club serves authentic and light Huaiyang cuisine, Hashiya features Japanese fare, while The Lobby Lounge offers simple meal options as well as German cakes and pastries.
www.kempinski.com
The Chedi Club – Suzhou
Dubbed the Venice of the East, and most famous for its classical gardens, pagodas and waterways, Suzhou is also an up and coming economic powerhouse, and its burgeoning hotel inventory is to receive a fresh infusion later this year with the arrival of this property – the first member of the lifestyle-oriented GHM group.
Opening date: To be confirmed.
Number of units: The 36 rooms take up the top floors of Global 188, a complex in downtown Suzhou that also includes Grade-A offices and high-end commercial spaces.
Location: The twin Global 188 Towers are situated in the centre of Suzhou Industrial Park, with direct access to the metro station.
Room facilities: Positioning itself as an urban retreat, The Chedi Club plans to have a rooftop restaurant as well as a health club and spa with 12 treatment rooms, including a reflexology salon.
Bonus points: The interiors are designed by renowned Indonesian designer Jaya Ibrahim.
www.ghmhotels.com
Other players
The Ascott is planning to open a Citadines-brand serviced residence property in the fast-developing western Chinese city of Chengdu in 2014. This will be its fourth serviced residence property in the city, with the existing Somerset-brand serviced apartments and two Ascott-brand properties due to open within the next two. Ascott Raffles City Chengdu is set to open this year, located in the heart of the city’s business district along Renmin Nan Road and connected to a metro interchange. The 296 units are expected to welcome leisure travellers as well as business travellers from the automobile, finance and IT industries.
Indonesia
The archipelago’s strong economic growth surpassed that of India in 2012, placing it in the same league as the other emerging giants in Asia. Its newfound affluence is reflected in the sharp increase in both hotel and serviced apartment openings, particularly in the capital city
of Jakarta.
Citadines Rasuna Jakarta
The Ascott’s first Indonesian property under its “apart’hotel” brand Citadines, the Rasuna Jakarta targets the independent traveller with short- and long-stay options.
Opening date: March 2013.
Location: Part of an integrated mixed-use complex called The H Tower, situated within the city’s central business district.
Number of units: 153, including one- and two-bedroom apartments.
Room facilities: Fully equipped kitchens, separate dining and living areas, complimentary internet access and a home entertainment system with a DVD player.
Other facilities: A fitness centre, outdoor swimming pool, business centre, laundrette, a café and restaurant, and a 24-hour
reception desk.
Bonus points: Next to the Metropolitan Medical Centre, this serviced residence is ideal for for medical tourists. It is also close to the lifestyle and entertainment hub Kuningan City Mall.
Coming up: Ascott’s second Citadines in Indonesia will be Citadines Marvell Surabaya, in the country’s second largest city.
www2.citadines.com
Malaysia
With the launch of the Economic Transformation Programme (ETP), Malaysia is making a comprehensive effort to transform itself into a high-income nation by 2020. The vision is to double gross national income (GNI) per capita to RM47,100 (US$15,000) and keep up an average growth rate of 6 per cent over the next decade. Unfortunately, facing “implementation glitches, political impediments and intense external competition”, the estimates have now been adjusted to GDP growth averaging 5.5 per cent in the next 10 years with GNI pushed to about US$12,500 per annum. Investment growth is expected to increase at around 7.6 per cent.
Citadines Uplands Kuching
The Ascott opened its 10th serviced residence property in Malaysia earlier this year, in the city of Kuching, the capital of the East Malaysian state
of Sarawak.
Date of opening: February 2013.
Number of units: 215 residences.
Location: Jalan Simpang Tiga, Kuching – a developing commercial and retail district 15 minutes away from the airport, the Borneo Convention Center and the Samajaya Free Industrial Zone that houses many local and multinational companies.
Room facilities: There are six types of apartment set-up – from studios to two-bedroom suites – each complete with a fully equipped kitchen, home entertainment system and paid internet access.
Other facilities: A swimming pool, gymnasium and a meeting room. The property also provides optional services such as courier, babysitting and laundry.
Bonus points: The area first made its name as a hub for local federal government offices and universities such as the Swinburne University of Technology. The Spring Shopping Center, one of the biggest shopping malls in East Malaysia, is just across the road.
Coming up: Ascott’s presence in Malaysia is due to expand with five more hotels opening in the next three years, including its largest 310-unit Somerset Medini Iskandar in Malaysia’s Johor Bahru region, and Ascott Sentral Kuala Lumpur later this year.
www2.citadines.com
Thailand
This Southeast Asian country has seen its fair share of challenges – from the 1997 Asian economic crisis and the global financial crisis of 2008 to political unrest that led to the shutdown of Bangkok in April 2009, as well as devastating floods in 2011 – but like a phoenix it has always rises up stronger. According
to the World Bank, Thailand’s economic activity is returning to normal, with quarterly economic growth rates now closer to pre-2008 levels. GDP rebounded after the floods at 6.4 per cent in 2012 and is forecast to continue growing at 5 per cent in 2013.
Oaks Bangkok Sathorn
The Minor Hotel Group, operator of brands such as Anantara and Avani, has opened the first property in Asia under this brand after taking over ownership of it in 2011.
Opening date: December 2012.
Location: Within a twin tower complex shared with the Anantara Bangkok Sathorn along Sathorn Road, this property is a short walk from Bangkok’s Bus Rapid Transit (BRT) and Chong Nonsi BTS stations.
Number of units: The property consists of 115 studio, one-, two- and three-bedroom units ranging from 38 sqm to 185 sqm in size.
Room facilities: All units have private balconies, and while the studios are more or less like hotel rooms, each of the suites features an en-suite bedroom (king or twin beds), dining area, hot plate, microwave oven, fridge, work station with high-speed internet (not free), as well as a bathroom with rain shower and bathtub, international satellite TV, extensive wardrobe and luggage storage space, an iron and ironing board, hair dryer, toaster, and tea/coffee-making facilities.
Other facilities: Facilities shared with Anantara include an infinity pool, tennis court and wifi access, which is complimentary in the hotel’s public areas. Guests can also take advantage of the dining options at the Anantara hotel, which consists of a rooftop restaurant, Signor Sassi, and two other all-day dining outlets.
Bonus points: Despite being a serviced apartment property, guests have a short-stay option for a minimum of one night.
Coming up: Following this opening, the group will open China’s first Oaks property in Sanya by the end of next year.
www.oakshotelsresorts.com
A change in demand
Staying in a serviced apartment used to be an option only for those who were posted overseas for a long time – from a few months to more than a year. Increasingly, though, it has become a popular choice for those staying just a week – or even less.
“We are seeing a trend where many serviced residences hold hotel licences as well, and are able to offer services to both short-term guests as well as the longer term traditional guests that serviced residences target,” Mr Raphael Saw, chief operating officer of Far East Hospitality, says. “As more and more multinational corporations set up regional headquarters in Asia, initial stages will require talent movement which will require interim housing or longer term accommodation for the contracted period. Serviced residences fill the gap between hotels and long-term leasing.”
Far East Hospitality, based in Singapore, operates hotels as well as various serviced residence properties in the city, including Riverside Village Residences in Robertson Quay.
Marilyn Fu, director of sales and marketing, Onyx Hospitality Group (North Asia), points out that it is less common for companies to post employees overseas for very long periods because of global economic uncertainty. “We observe that tenants choose to stay for a shorter period on overseas assignments. This is because companies tend to send staff overseas for project-based work more frequently rather than relocating them to a city owing to company’s budget concerns.”
Onyx is very active in developing the China market, including many second-tier cities, with its Shama serviced residence brand. Fu says: “Apart from the demand from foreign multinational corporates, relocating Chinese nationals to other cities forms another mobility trend in China. This year, Onyx will add one serviced apartment in Hangzhou, Shama HEDA Hangzhou, to its ever-increasing portfolio. Recently, two more management contracts have been secured for new developments in Beijing and Chengdu.”
Another attraction of serviced apartments compared to hotels is how they adjust facilities and amenities based on location. This is especially important when one is being posted to a less developed city in a foreign land with very little to do.
“When comparing a second-tier property like Shama Luxe Grand Central Dalian with [those in] Shanghai, tenants seem to have different needs. Since the city itself is not as exciting as first-tier cities, tenants prefer to spend their leisure time at the property. Therefore, we offer full facilities such as a swimming pool, gym, yoga room, billiard room, den area with large flatscreen TV, children’s indoor play areas, and a cosy lounge,” Fu says. “As well as the facilities, we also organise activities more frequently for tenants in Dalian. We prepare a great variety of events and classes specially designed for families, housewives and children.”
Onyx is also present in Thailand, with Shama as well as its other brand Amari, under which the company has three Bangkok properties. But most of the guests in these properties, according to Fu, are leisure travellers, especially families who need bigger spaces.
The blurring line between serviced apartments and hotels can also be seen in the phenomenon of “apart’hotels” or “boutique hotel cum serviced apartments”, such as Lodgewood in Hong Kong, by the L’hotel group. The new property opened last month in the bustling retail district of Mongkok and is offering “Long-Stay Packages” at HK$9,800 (US$1,262) per half month.
The rooms, sized from 23 sqm to 54 sqm, are more akin to those of hotels, but the grab-and-go breakfast service and all-day free-flowing fresh coffee seem to be designed for those in town for work.
Being an operator of both hotels and serviced apartments allows L’hotel the flexibility to tailar services for guests. “We offer serviced apartment package as short as 14 days. More tailor-made services like frequency of room make-up can be arranged. All of these in a way explain the popularity of hotel and serviced apartment complex,” says Jaime Aromin, hotel manager of Lodgewood.
For those staying for extended periods, there is a discount on laundry and dry-cleaning services, free wired and wireless internet, as well as thrice-weekly housekeeping. While serviced apartment properties tend to have no restaurants (as they often provide kitchen facilities for guests to cook for themselves), Lodgewood will have one restaurant, opening later this year, to serve residents.
The One Executive Suites – Shanghai
This property is Germany-based Kempinski’s entry into Shanghai, China’s premier commercial hub. It is also the latest addition to the group’s portfolio of luxury serviced residences that include Beijing, Jakarta, Bangkok, Doha, Dubai, Istanbul, Geneva and St Moritz.
Opening date: February 2012.
Number of units: 224 units in one-, two- and three-bedroom configurations, with the largest category at 300 sqm.
Location: In the key district of Jing’an, where a slew of mega commercial-retail projects are under development.
Room facilities: All have separate bedroom and living room areas, as well as heated floors for winter
and balconies.
Other facilities: Wifi is available in the public areas and guest apartments.
Bonus points: Unlike many serviced residence properties that have limited food and beverage options, this one offers three options: Suyang Club serves authentic and light Huaiyang cuisine, Hashiya features Japanese fare, while The Lobby Lounge offers simple meal options as well as German cakes and pastries.
www.kempinski.com
The Chedi Club – Suzhou
Dubbed the Venice of the East, and most famous for its classical gardens, pagodas and waterways, Suzhou is also an up and coming economic powerhouse, and its burgeoning hotel inventory is to receive a fresh infusion later this year with the arrival of this property – the first member of the lifestyle-oriented GHM group.
Opening date: To be confirmed.
Number of units: The 36 rooms take up the top floors of Global 188, a complex in downtown Suzhou that also includes Grade-A offices and high-end commercial spaces.
Location: The twin Global 188 Towers are situated in the centre of Suzhou Industrial Park, with direct access to the metro station.
Room facilities: Positioning itself as an urban retreat, The Chedi Club plans to have a rooftop restaurant as well as a health club and spa with 12 treatment rooms, including a reflexology salon.
Bonus points: The interiors are designed by renowned Indonesian designer Jaya Ibrahim.
www.ghmhotels.com
Other players
The Ascott is planning to open a Citadines-brand serviced residence property in the fast-developing western Chinese city of Chengdu in 2014. This will be its fourth serviced residence property in the city, with the existing Somerset-brand serviced apartments and two Ascott-brand properties due to open within the next two. Ascott Raffles City Chengdu is set to open this year, located in the heart of the city’s business district along Renmin Nan Road and connected to a metro interchange. The 296 units are expected to welcome leisure travellers as well as business travellers from the automobile, finance and IT industries.
Indonesia
The archipelago’s strong economic growth surpassed that of India in 2012, placing it in the same league as the other emerging giants in Asia. Its newfound affluence is reflected in the sharp increase in both hotel and serviced apartment openings, particularly in the capital city
of Jakarta.
Citadines Rasuna Jakarta
The Ascott’s first Indonesian property under its “apart’hotel” brand Citadines, the Rasuna Jakarta targets the independent traveller with short- and long-stay options.
Opening date: March 2013.
Location: Part of an integrated mixed-use complex called The H Tower, situated within the city’s central business district.
Number of units: 153, including one- and two-bedroom apartments.
Room facilities: Fully equipped kitchens, separate dining and living areas, complimentary internet access and a home entertainment system with a DVD player.
Other facilities: A fitness centre, outdoor swimming pool, business centre, laundrette, a café and restaurant, and a 24-hour
reception desk.
Bonus points: Next to the Metropolitan Medical Centre, this serviced residence is ideal for for medical tourists. It is also close to the lifestyle and entertainment hub Kuningan City Mall.
Coming up: Ascott’s second Citadines in Indonesia will be Citadines Marvell Surabaya, in the country’s second largest city.
www2.citadines.com
Malaysia
With the launch of the Economic Transformation Programme (ETP), Malaysia is making a comprehensive effort to transform itself into a high-income nation by 2020. The vision is to double gross national income (GNI) per capita to RM47,100 (US$15,000) and keep up an average growth rate of 6 per cent over the next decade. Unfortunately, facing “implementation glitches, political impediments and intense external competition”, the estimates have now been adjusted to GDP growth averaging 5.5 per cent in the next 10 years with GNI pushed to about US$12,500 per annum. Investment growth is expected to increase at around 7.6 per cent.
Citadines Uplands Kuching
The Ascott opened its 10th serviced residence property in Malaysia earlier this year, in the city of Kuching, the capital of the East Malaysian state
of Sarawak.
Date of opening: February 2013.
Number of units: 215 residences.
Location: Jalan Simpang Tiga, Kuching – a developing commercial and retail district 15 minutes away from the airport, the Borneo Convention Center and the Samajaya Free Industrial Zone that houses many local and multinational companies.
Room facilities: There are six types of apartment set-up – from studios to two-bedroom suites – each complete with a fully equipped kitchen, home entertainment system and paid internet access.
Other facilities: A swimming pool, gymnasium and a meeting room. The property also provides optional services such as courier, babysitting and laundry.
Bonus points: The area first made its name as a hub for local federal government offices and universities such as the Swinburne University of Technology. The Spring Shopping Center, one of the biggest shopping malls in East Malaysia, is just across the road.
Coming up: Ascott’s presence in Malaysia is due to expand with five more hotels opening in the next three years, including its largest 310-unit Somerset Medini Iskandar in Malaysia’s Johor Bahru region, and Ascott Sentral Kuala Lumpur later this year.
www2.citadines.com
Thailand
This Southeast Asian country has seen its fair share of challenges – from the 1997 Asian economic crisis and the global financial crisis of 2008 to political unrest that led to the shutdown of Bangkok in April 2009, as well as devastating floods in 2011 – but like a phoenix it has always rises up stronger. According
to the World Bank, Thailand’s economic activity is returning to normal, with quarterly economic growth rates now closer to pre-2008 levels. GDP rebounded after the floods at 6.4 per cent in 2012 and is forecast to continue growing at 5 per cent in 2013.
Oaks Bangkok Sathorn
The Minor Hotel Group, operator of brands such as Anantara and Avani, has opened the first property in Asia under this brand after taking over ownership of it in 2011.
Opening date: December 2012.
Location: Within a twin tower complex shared with the Anantara Bangkok Sathorn along Sathorn Road, this property is a short walk from Bangkok’s Bus Rapid Transit (BRT) and Chong Nonsi BTS stations.
Number of units: The property consists of 115 studio, one-, two- and three-bedroom units ranging from 38 sqm to 185 sqm in size.
Room facilities: All units have private balconies, and while the studios are more or less like hotel rooms, each of the suites features an en-suite bedroom (king or twin beds), dining area, hot plate, microwave oven, fridge, work station with high-speed internet (not free), as well as a bathroom with rain shower and bathtub, international satellite TV, extensive wardrobe and luggage storage space, an iron and ironing board, hair dryer, toaster, and tea/coffee-making facilities.
Other facilities: Facilities shared with Anantara include an infinity pool, tennis court and wifi access, which is complimentary in the hotel’s public areas. Guests can also take advantage of the dining options at the Anantara hotel, which consists of a rooftop restaurant, Signor Sassi, and two other all-day dining outlets.
Bonus points: Despite being a serviced apartment property, guests have a short-stay option for a minimum of one night.
Coming up: Following this opening, the group will open China’s first Oaks property in Sanya by the end of next year.
www.oakshotelsresorts.com
A change in demand
Staying in a serviced apartment used to be an option only for those who were posted overseas for a long time – from a few months to more than a year. Increasingly, though, it has become a popular choice for those staying just a week – or even less.
“We are seeing a trend where many serviced residences hold hotel licences as well, and are able to offer services to both short-term guests as well as the longer term traditional guests that serviced residences target,” Mr Raphael Saw, chief operating officer of Far East Hospitality, says. “As more and more multinational corporations set up regional headquarters in Asia, initial stages will require talent movement which will require interim housing or longer term accommodation for the contracted period. Serviced residences fill the gap between hotels and long-term leasing.”
Far East Hospitality, based in Singapore, operates hotels as well as various serviced residence properties in the city, including Riverside Village Residences in Robertson Quay.
Marilyn Fu, director of sales and marketing, Onyx Hospitality Group (North Asia), points out that it is less common for companies to post employees overseas for very long periods because of global economic uncertainty. “We observe that tenants choose to stay for a shorter period on overseas assignments. This is because companies tend to send staff overseas for project-based work more frequently rather than relocating them to a city owing to company’s budget concerns.”
Onyx is very active in developing the China market, including many second-tier cities, with its Shama serviced residence brand. Fu says: “Apart from the demand from foreign multinational corporates, relocating Chinese nationals to other cities forms another mobility trend in China. This year, Onyx will add one serviced apartment in Hangzhou, Shama HEDA Hangzhou, to its ever-increasing portfolio. Recently, two more management contracts have been secured for new developments in Beijing and Chengdu.”
Another attraction of serviced apartments compared to hotels is how they adjust facilities and amenities based on location. This is especially important when one is being posted to a less developed city in a foreign land with very little to do.
“When comparing a second-tier property like Shama Luxe Grand Central Dalian with [those in] Shanghai, tenants seem to have different needs. Since the city itself is not as exciting as first-tier cities, tenants prefer to spend their leisure time at the property. Therefore, we offer full facilities such as a swimming pool, gym, yoga room, billiard room, den area with large flatscreen TV, children’s indoor play areas, and a cosy lounge,” Fu says. “As well as the facilities, we also organise activities more frequently for tenants in Dalian. We prepare a great variety of events and classes specially designed for families, housewives and children.”
Onyx is also present in Thailand, with Shama as well as its other brand Amari, under which the company has three Bangkok properties. But most of the guests in these properties, according to Fu, are leisure travellers, especially families who need bigger spaces.
The blurring line between serviced apartments and hotels can also be seen in the phenomenon of “apart’hotels” or “boutique hotel cum serviced apartments”, such as Lodgewood in Hong Kong, by the L’hotel group. The new property opened last month in the bustling retail district of Mongkok and is offering “Long-Stay Packages” at HK$9,800 (US$1,262) per half month.
The rooms, sized from 23 sqm to 54 sqm, are more akin to those of hotels, but the grab-and-go breakfast service and all-day free-flowing fresh coffee seem to be designed for those in town for work.
Being an operator of both hotels and serviced apartments allows L’hotel the flexibility to tailar services for guests. “We offer serviced apartment package as short as 14 days. More tailor-made services like frequency of room make-up can be arranged. All of these in a way explain the popularity of hotel and serviced apartment complex,” says Jaime Aromin, hotel manager of Lodgewood.
For those staying for extended periods, there is a discount on laundry and dry-cleaning services, free wired and wireless internet, as well as thrice-weekly housekeeping. While serviced apartment properties tend to have no restaurants (as they often provide kitchen facilities for guests to cook for themselves), Lodgewood will have one restaurant, opening later this year, to serve residents.
