Aparthotels: what are they, how did they originate, and what makes them interesting for tourists and investors?

Why are aparthotels becoming increasingly popular among tourists and investors?
Why are serviced apartments becoming a popular choice for different categories of residents?

Aparthotels: a unique living format

Aparthotels represent a unique accommodation concept that is gaining popularity year by year. What exactly is hidden behind this term, and how does an aparthotel differ from a traditional hotel? Let's take a closer look at what this concept entails and explore the advantages it offers for tourists, digital nomads, and investors.

These questions are addressed by Maria Onuchina, the CEO of the hotel operator 25/7.

What is an apartment hotel?

Aparthotels are a special category of hotel complex that offers rental accommodation with flexible pricing policies based on market conditions and seasonality. Management companies use various rental strategies to increase owners' income by combining different formats and approaches.

This can be compared to airlines that adjust ticket prices and offer special deals based on demand, booking period, and many other factors. Each managing organization creates its own offer based on:

project concepts;
star level;
the preferences of the target audience.

For example, apart-hotels often offer a higher level of comfort compared to traditional hotels: additional sleeping areas, spaces for work or relaxation, expanded amenities, and larger bathrooms.

The history of aparthotels

It seems that the first example of an aparthotel can be considered Jack Deborah's project in Kansas, launched in the 1970s. His establishment, known as The Residence Inn, became a symbol of a new format for hotel accommodation and aimed to create"home away from home".

Initially, it was focused on long-term rentals that lasted several months. However, over time it became clear that such rooms with hotel services should be offered for shorter periods — from a week or even less.

The Residence Inn advertising campaign showcased a person carefreely watching TV in a comfortable room, contrasting with the image of someone roasting marshmallows over an open fire, under the slogan:“As close to home as possible”.

Global popularity

Despite its American origins, the concept of aparthotels is gradually spreading across the globe. This accommodation format is rapidly gaining popularity in countries such as:

United States;
United Arab Emirates
Canada;
many others.

Aparthotels offer maximum comfort, allowing tourists to stay for short periods or use them as permanent residences. Often, such properties can be purchased. People seeking coziness and a homely atmosphere increasingly choose this type of accommodation, especially when complemented by high-quality hotel services.

Advantages and opportunities

Thus, apart-hotels are the perfect solution for both those seeking temporary accommodation and those who would like to have more stable housing without compromising the level of service typical of hotels. This format meets the demands of a wide range of tourists and investors, constantly evolving and adapting to various market conditions and client needs, which may change over time.

Understanding this market and its concept is becoming increasingly relevant, which opens up new horizons for everyone involved in the process - from management companies to the guests themselves looking for the best possible accommodation.

Aparthotels: modern accommodation for various needs

Aparthotels represent an interesting and modern segment of the hospitality market, attracting a diverse range of residents with various needs. Among the guests, you can find not only tourists and business travelers but also young people, migrants, digital nomads, and entrepreneurs who value efficient use of their time. This type of accommodation is particularly relevant for the millennial generation, who prefer independence and are not afraid of solitude.

Many choose aparthotels instead of traditional real estate purchases, as this allows them to avoid being tied to a specific location.

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The comfortable living conditions in such hotels free their residents from the mundane routine, which is what makes them so appealing.

Booking and staying process

As for the procedure for staying and booking, it really resembles the operation of regular hotels. Guests are given the option to check in for various durations, starting from one night. However, it should be noted that some establishments may set minimum rental periods or offer flexible check-out conditions.

Booking management services via mobile apps are also gaining popularity, making the stay much easier for guests.

Advantages of apart-hotels

The combination of comfort and convenienceThe main advantages of apart-hotels lie in the perfect combination of hotel service amenities and the comfort of a home-like environment.
Modern conveniencesEach room is equipped with everything necessary to ensure a maximum level of comfort during your stay.
Infrastructure: While the cost of staying in such places may be higher than renting a regular apartment, this is often justified by access to the infrastructure of the hotel.
Diversity of servicesAmenities often include sports and entertainment areas, coworking spaces, dry cleaning and laundry services, as well as concierge services and other useful services.
Investment attractivenessMany serviced apartments have an investment focus, which implies the presence of various property owners, while management is carried out according to unified standards by a single operator.

At the same time, the quality of service does not suffer, and guests generally do not notice the many owners involved in the project.

Investments in apartment hotels

For investors owning apartments, the key success factors are a good location, developed infrastructure, and easy access to public transport. All of this directly affects the occupancy rate of hotels.

Investing in aparthotels can be considered one of the most reliable ways to generate income. An example of such success can be seen in the COVID-19 pandemic situation, when traditional hotels faced serious difficulties, while apart-hotels demonstrated stable occupancy rates and profitability for their owners, thanks to a flexible approach to the duration of stay, which allowed to offer both short-term and long-term rentals.

Conclusion

Thus, apart-hotels are becoming an excellent option for a wide audience — from students to businesspeople. They provide a comfortable and functional place to stay in any city, combining many advantages.

Conclusion

In concluding my research on the format of aparthotels, I realize that this type of accommodation is a unique and flexible alternative to traditional hotels, which undoubtedly finds its audience. By combining the comfort of a home environment with full hotel services, aparthotels attract not only tourists but also digital nomads, students, and workers seeking a higher quality and more convenient living experience.

Historical context

Studying the history of the emergence of this format, one can see how, over several decades, it has become an integral part of the hotel market, adapting to the constantly changing needs of clients and market conditions. The first steps in this direction were taken in the 1970s, but now aparthotels are actively developing on different continents, spreading from the USA and Canada to Europe and the Middle East. This format allows for not only short-term but also long-term stays, making it particularly popular among those who do not want to be tied to one location.

Advantages and disadvantages

Having noted the advantages that customers gain by choosing apart-hotels, it is also worth mentioning some drawbacks:

Advantages:The comfort of a home environment, the availability of hotel services, and the option for short or long-term stays.
Disadvantages:The cost of living may turn out to be higher than the rent for an apartment.

There is no doubt that the price is justified when considering the opportunities that this type of housing offers. Services, including access to sports and entertainment areas, coworking spaces, and professional support, are becoming important factors influencing tenants' choices.

Investment opportunities

For investors, apart-hotels offer a wealth of opportunities, and their resilience during tough times, such as the COVID-19 pandemic, confirms their appeal as investment assets. Scalability, versatility, and the ability to combine different rental approaches make apart-hotels a particularly advantageous investment.

Prospects

Thus, apart-hotels continue to evolve and adapt, offering a new perspective in the hospitality sector. As the author of this article, I am ready to observe how this format will change and improve to meet even the highest demands of users. I am confident that many interesting solutions await us ahead, capable of making stays in apart-hotels even more comfortable and appealing for all categories of clients.