News: Indian hotel majors make room for service apartments now
(TNN 29/08/2006) Mumbai - Top hotels like Four Seasons, Viceroy and Taj GVK are planning to set up service apartments in the country in the wake of a big jump in demand from expatriates, non-resident Indians and corporates in recent months.
In fact, for April-Jun’06, service apartments, a relatively new phenomenon in India, reported occupancy rates of 83-95% against 76-83% in the previous corresponding period. Average room rates (ARR) too are up by 20-35% in the same period, sources said.
Currently, Marriott Executive Lakeside Chalet, Taj Wellington Mews luxury residences and the Grand Hyatt residences are some of the premium service apartments in Mumbai with a total of around 400 rooms.
The Lakeside Chalet had a room rate of Rs 6798 per day during the Apr-Jun’06 while Taj Wellington Mews retails at around Rs 12,700 per day. The capital also has big players such as Edenpark Hotels and Savoy Suites.
Security and home-like conveniences are some of the main drivers for service apartments. Says Anirban Sengupta, director marketing of Grand Hyatt, “The Indian market is getting globalised.
A lot of expatriates and corporates relocating to a particular city opt for these apartments against staying in a hotel.” Also, given the sharp jump in hotel room rates, multinational firms see service apartments as the more cost-effective option, Mr Sengupta added.
Hotels expect this segment to boom in the near future owing to the fact that a lot of global majors have plans to expand operations in the country and relocate expatriates from their global operations. The IT, retail and ancillary boom has fuelled the demand for long-stay facilities, sources said.
Service apartments are rooms which basically include the comforts of a home like a kitchenette with a 24-hour room service. Service apartments have been in vogue for a while in markets like USA and UK.
Says Binaifer Jehani of Cris Infac, “Corporates who have a regular movement of its employees across countries prefer to retain service apartments as against maintaining its own apartments.”
In fact, for April-Jun’06, service apartments, a relatively new phenomenon in India, reported occupancy rates of 83-95% against 76-83% in the previous corresponding period. Average room rates (ARR) too are up by 20-35% in the same period, sources said.
Currently, Marriott Executive Lakeside Chalet, Taj Wellington Mews luxury residences and the Grand Hyatt residences are some of the premium service apartments in Mumbai with a total of around 400 rooms.
The Lakeside Chalet had a room rate of Rs 6798 per day during the Apr-Jun’06 while Taj Wellington Mews retails at around Rs 12,700 per day. The capital also has big players such as Edenpark Hotels and Savoy Suites.
Security and home-like conveniences are some of the main drivers for service apartments. Says Anirban Sengupta, director marketing of Grand Hyatt, “The Indian market is getting globalised.
A lot of expatriates and corporates relocating to a particular city opt for these apartments against staying in a hotel.” Also, given the sharp jump in hotel room rates, multinational firms see service apartments as the more cost-effective option, Mr Sengupta added.
Hotels expect this segment to boom in the near future owing to the fact that a lot of global majors have plans to expand operations in the country and relocate expatriates from their global operations. The IT, retail and ancillary boom has fuelled the demand for long-stay facilities, sources said.
Service apartments are rooms which basically include the comforts of a home like a kitchenette with a 24-hour room service. Service apartments have been in vogue for a while in markets like USA and UK.
Says Binaifer Jehani of Cris Infac, “Corporates who have a regular movement of its employees across countries prefer to retain service apartments as against maintaining its own apartments.”
posted by InCar Group Press Room at 15:26
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