Serviced Apartments on the Rise in South Africa

 

According to the latest research by South African property management groups, there has been an outpouring in the popularity of serviced apartments across the African continent.

The data revealed that serviced apartments are outperforming the long-term rental rate on a net basis of over 50%.

Before we get into the detail, let’s have a quick look at what serviced apartments are.

 

What are Serviced Apartments?

Serviced apartments are apartments that are fully serviced similar to the hotel services, they are also referred to as “aparthotels” in some cases. This type of travel accommodation is a type of longer-term stay, which exceeds the usual duration of a hotel stay, meaning anything more than 7 days.

The idea is to provide serviced accommodation that is different from that of hotels. Serviced apartments aim to provide the guest with more flexibility and privacy in a bigger space.

Business travellers are slowly growing tired of staying in hotels, especially if it is for long periods where they require more privacy, and a home away from home experience.

This accommodation is a type of service where a company provides extended stay accommodation for employees, contractors, or clients who are on a long-term assignment or project, typically for a period of 7 days or more.

Serviced apartments or “aparthotel” is your typical furnished apartments or houses which include basic hotel amenities such as:

 

  • 24 hr reception
  • Housekeeping
  • Internet
  • Utilities
  • Own kitchen or kitchenette
  • Dining room
  • Lounge area
  • As well as other unique needs based on the individual’s requirements.

 

The major benefit of staying in a serviced apartment is that it is much bigger than your average hotel room. You also have the benefit of having guests over as there are bigger dining room settings, lounges, kitchens, bathrooms, etc.

The whole idea behind aparthotels is to provide a home-like environment for those who are away from their own homes for extended periods. These packages are often uniquely designed for business travellers and extended stay leisure travellers.

 

Growing Demand for High-Quality Accommodation

The increasing demand for high-quality “home-away-from-home” options, in both local and global industries, has given rise to a type of long-term stay service that blends the features of a hotel with the comfort of low-maintenance apartments.

Individuals who travel are seeking accommodation that not only furnishes exceptional workspaces but also presents opportunities for leisure.

Whether one requires a temporary residence or a more prolonged stay, serviced apartment options are tailored to meet the needs of each unique individual.

 

The Growing Popularity

The growing popularity of serviced apartments is mainly due to the fact that guests can enjoy their stay in a private space, without the formality of a hotel.

The above is just one of the reasons for the growing popularity of this sector, below are a few other brilliant benefits that guests can enjoy:

 

  • Entertaining in your own apartment
  • Cooking your own meals whenever you want to
  • Effortless check-ins
  • Cleaning services
  • High-quality new bed linen daily
  • Flexibility to stay for longer if need be.

 

A few of the premium aparthotels often provide exceptional shared spaces, such as swimming pools, co-working areas, fitness centres, coffee houses, or elevated decks, where guests can socialize with other travellers as well.

 

A New Target Market

Another interesting fact that came up was that serviced apartments (aparthotels) appeared to be the preferred choice for digital nomads due to them being lower in costs compared to hotels.

If you would like to read more on the trend surrounding business travellers wanting to become nomads, then please click on this link.

The trend of working from anywhere has now resulted in there being 35 000 000 known digital nomads worldwide, which is expected to grow in 2023 and beyond, making this a lucrative market to target.

 

Data According to the Stats

In terms of aparthotel research in South Africa, the domestic market continues to dominate occupancy, with 22% of guests coming from within the country.

However, statistics also show that international guests are on the rise, with travellers from Germany, the Netherlands, the US, and the UK becoming more prominent in Cape Town.

Business Traveller Trends

It is also important to note that aparthotels are trending for “bleisure” travellers.

Their business trips are lately being converted into a family stay, simply by adding a few days in the end and having the rest of the family join.

 

In Conclusion

Generally, business travel durations have slightly increased, and staying in a serviced apartment provides added convenience during the stay.

Aparthotels are increasingly attracting modern business travellers who are looking for good quality and value, without the extra frills that hotels have.

Research shows that having a fully equipped kitchen featuring high-end appliances and convenient access to hotel amenities in prime locations, results in an effortless extended stay experience for the business traveller.

The trend that followed post-COVID and well into 2023 is that extended stays of blended work and leisure are now a constant and not a passing trend.

This is relevant to both international and local markets. These services are dynamic enough to have someone stay for a few nights, a few weeks, or even a couple of months.

 

“Business travellers are actively seeking the freedom of DIY travel.”

 

At My/Residence we aim to offer this exclusive experience for business travellers. If you would like to find out more on how our team can help you, please click on the link below:

 

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