Table of Contents
Key Findings
Data Sources
Abbreviations
Issues in the Market
-
- Airbnb entering the serviced-apartment sector
- GDPR (Global Data Protection Regulation)
- Major chains offer short-term rentals
- Oversupply developing in some markets
- Regulation/planning controls
Global Summary
-
- Demographic outlook
-
- Figure 1: Outlook for world population growth by region & category of country, 2015-40
- Population growth by age cohort
-
- Figure 2: Outlook for world population growth by age cohort, region & category of country, 2015-40
- GDP growth
- Global growth outlook downgraded
- Trade-war risk
-
- Figure 3: Overview of the IMF’s World Economic Outlook projections (% change, unless noted otherwise), October 2018 update
- Inflation outlook
-
- Figure 4: Inflation (y-on-y % change), 2016-19
- Short-term interest rates
-
- Figure 5: Central bank interest rates (%), 2016-19
- Long-term interest rates
-
- Figure 6: 10-year government bond interest rates (%), 2016-19
- Exchange-rate forecasts
- Overly optimistic on the Pound
- Emerging-market currencies to stabilise
-
- Figure 7: Exchange-rate forecasts for 3 & 12 months from 12 September 2018
- Outlook for spending on travel and tourism
-
- Figure 8: Spending on travel & tourism worldwide*, 2017 & 2028
- Africa
-
- Figure 9: Spending on travel & tourism in Africa*, 2017 & 2028
- North Africa
-
- Figure 10: Spending on travel & tourism in North Africa*, 2017 & 2028
- Sub-Saharan Africa
-
- Figure 11: Spending on travel & tourism in Sub-Saharan Africa*, 2017 & 2028
- Asia Pacific
-
- Figure 12: Spending on travel & tourism in Asia Pacific*, 2017 & 2028
- North East Asia
-
- Figure 13: Spending on travel & tourism in North East Asia*, 2017 & 2028
- Oceania
-
- Figure 14: Spending on travel & tourism in Oceania*, 2017 & 2028
- South Asia
-
- Figure 15: Spending on travel & tourism in South Asia*, 2017 & 2028
- South East Asia
-
- Figure 16: Spending on travel & tourism in South East Asia*, 2017 & 2028
- Americas
-
- Figure 17: Spending on travel & tourism in Americas*, 2017 & 2028
- Latin America
-
- Figure 18: Spending on travel & tourism in Latin America*, 2017 & 2028
- North America
-
- Figure 19: Spending on travel & tourism in North America*, 2017 & 2028
- Europe
-
- Figure 20: Spending on travel & tourism in Europe*, 2017 & 2028
- Middle East
-
- Figure 21: Spending on travel & tourism in Middle East*, 2017 & 2028
Airbnb Entering the Serviced-apartment Sector
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- Airbnb’s business-travel programme
- ‘Business Travel Ready’ requirements
- BTR only partially closes the gap with hotels
- Rapid growth from a small base
- Targeting Millennial ‘bleisure’ travellers
-
- Figure 22: Top 10 cities for business trips on Airbnb, 2017
- Employees can book business travel for co-workers on Airbnb
- BridgeStreet tie-up
- How the partnership works
- Concur relationship
- Airbnb listings appear alongside those of major chains
- Concur hardly a start-up
- Airbnb – A significant player in corporate travel?
- Airbnb integrated into TMCs
- Airbnb still far from mainstream in corporate travel
- Less than 1.36% of US business-travel lodging expenses
- Airbnb’s Luxury Retreats acquisition
- An upgraded service offering
- Airbnb Lux?
- Fancier properties and a more upmarket clientele…
- …but possibly more competition
- Higher margins and less regulatory issue
- Still a highly fragmented market
- Premium rentals
- Hosts to behave more like hotel employees
- Airbnb Plus launched
- Hotels welcome
- A luxury tier?
- Host requirements for Airbnb Plus
- Comparison of Airbnb Plus with hotels
-
- Figure 23: Comparison of Airbnb Plus with hotels, 2018
- A worrying development for hotels and serviced apartments?
- A question-mark regarding supply
- Airbnb service companies
- Relationship to Airbnb often not clear
- The Airbnb service ecosystem
-
- Figure 24: Airbnb service companies by type of service offered, 2018
- FlyCleaners
- properly
-
- Figure 25: Details of properly’s contract offers, 2018
- Guesty
- Urban Bellhop
-
- Figure 26: Bellhop services & pricing, 2018
- FIBARO
- Lockitron
- SkyBell
- KeyCafe
- Guesthop
- Beyond Pricing
- PriceLabs provides revenue management services
-
- Figure 27: PriceLab’s price list for its revenue management services, 2017
- Guest services
- HomeAway has formalised relationships with service providers
- More segmentation in accommodation rental
- Amenity-driven peer-to-peer rentals
- Harnessing personal networks for holiday rentals
- How does it work?
- Funding and business model
- The need to scale rapidly
- Airbnb making strides in Chinese market
- Tujia.com
- How Tujia differs from Airbnb
- Trust is a big issue
- Property management frequently outsourced
- Vertically integrating the supply chain
- Mayi.com acquisition
- Regulation
- Outlook
- Overseas expansion
GDPR (Global Data Protection Regulation)
-
- Penalties for non-compliance
- ‘Opting out’ function a necessity
- Implications for lodging establishments
- Training is important
- Already PCI DSS (Payment Card Industry Data Security Standard) compliant?
Major Chains Offer Short-term Rentals
-
- AccorHotels has embraced sharing economy
- Investment in Squarebreak & Oasis
- onefinestay
-
- Figure 28: onefinestay’s properties by type of location, 2018
- Onefinestay’s ‘Higher Living’ concierge programme
- Accor has launched JO&JOE
- Development has been slow
- Both locals and travellers targeted
- Accor acquires John Paul concierge services
- AccorHotels buys Travel Keys
- Travel Keys & Squarebreak united under the onefinestay brand
- Choice holiday homes
- Only professionally managed inventory
- Maxxton acquired
- Roommate/Be Mate
- Only the best chosen
- Location and booking
- Hotel services available
- A viable model?
- Marriott launches Tribute Portfolio Homes
- Hostmaker
- Marriott expands homesharing in Europe
- Dusit Thani moves into luxury rentals
Oversupply Developing in Some Markets
Regulation/Planning Controls
-
- ‘Right to rent’ checks for landlords in England
- Deregulation Act of 2015
Market Overview by Major World Region
-
- Africa
- Current projects
- Marriott Executive Apartments in Lagos
- Ascott in Acrra
- AccorHotels in Abidjan
- Minor Hotels in Tunis
- Asia
- Ascott’s China push
-
- Figure 29: Leading serviced-apartment brands in Asia, 2018
- Europe
-
- Figure 30: Leading serviced-apartment/extended-stay brands in Europe, 2018
- Figure 31: Product types for operators in HVS survey, 2018
- Recent performance
- More asset-light structures
-
- Figure 32: Operating models used by serviced-apartment operators in Europe , 2018
- Common terms and conditions
-
- Figure 33: Common terms & conditions for management, lease & franchise contracts in Europe, 2018
- New concepts and updates
- Operators’ main challenges
-
- Figure 34: Serviced-apartment operators’ main challenges in Europe, 2018
- Targeted markets for expansion
- Operators’ expansion plans
- European pipeline by country
-
- Figure 35: Serviced-apartment pipeline units by European country, 2018
- Germany, a strong growth market
-
- Figure 36: Top 5 serviced-apartment operators in Germany, 2017
- UK
- Aparthotel JV in UK
- European pipeline by brand
-
- Figure 37: European serviced-apartment pipeline by brand (units), 2018
- StayCity
- SACO
- Adina
- Detailed European pipeline by individual property
-
- Figure 38: Detailed serviced-apartment pipeline in Europe by property, 2018-19
- Figure 39: Detailed serviced-apartment pipeline in Europe by property, 2019-20
-
- Figure 40: Detailed serviced-apartment pipeline in Europe by property, 2020-21
- Transactions and merger & acquisition activity
- Single-asset transactions
-
- Figure 41: Recent single-asset serviced-apartment transactions in Europe (€), 2017-18
- Latin America
- Mexico
- Major extended-stay/serviced-apartment groups entering the market
- Rates
- Middle East
-
- Figure 42: Number of keys & share of internationally branded supply in GCC serviced-apartment markets, October 2017
- Unit sizes
-
- Figure 43: Leading branded serviced-apartment operators in the Middle East, 2018
- US and Canada
-
- Figure 44: Leading extended-stay/serviced-apartment brands & operators in the US & Canada, 2018
- Franchise fees
-
- Figure 45: Franchise fees* for extended-stay brands operating in the US market, 2014
- JD Power guest satisfaction rankings
- Upscale brand rankings
-
- Figure 46: JD Power rankings for North American midscale extended-stay brands, 2018
- Midscale brand rankings
-
- Figure 47: JD Power rankings for North American midscale extended-stay brands, 2018
- BTN survey rankings
- Upscale extended stay
-
- Figure 48: BTN’s survey of upscale extended-stay hotels (rating scale of 1 to 6), 2018
- Midscale extended stay
-
- Figure 49: BTN’s survey of midscale extended-stay hotels (rating scale of 1 to 6), 2018
- Corporate housing market
- Canada
-
- Figure 50: Trend in the ADR (US$) for Canadian corporate housing, 2007-17
- Figure 51: Trend in occupancy for Canadian corporate housing (%), 2007-17
-
- Figure 52: Average length of stay in Canadian corporate housing, 2007-17
- Figure 53: Travel purpose for clients in Canadian corporate housing in 2017 (%)
-
- Figure 54: Guest profile by industry sector in Canadian corporate housing, %, 2017
- US
-
- Figure 55: Trend in ADR (US$) for US corporate housing, 1999-2017
-
- Figure 56: Trend in occupancy for US corporate housing (%), 2007-17
- Figure 57: Trend in capacity of US corporate housing (number of units), 1999-2017
-
- Figure 58: Average length of stay in US corporate housing, 1999-2017
- Figure 59: Travel purpose for clients staying in US corporate housing, % 2017
-
- Figure 60: Guest profile by industry sector in US corporate housing, %, 2017
Distribution
-
-
- Figure 61: Serviced-apartment booking channels 2015/16-2016/17
- OTAs
- Booking.com
- Booking.com’s new products for professional short-term rentals
- BridgeStreet
- BridgeStreet’s brands
- Mode Aparthotel launched in Paris
- BridgeStreet’s OTA
- BridgeStreet adds hostels and holiday rentals
- The impact of Airbnb
- Expedia
- WWStay, an extended-stay specialist
- Social media
-
- Figure 62: Top performing serviced-apartment brands by social-media followers, 2018
- Figure 63: Instagram – Brands with biggest % increase in followers & posts, 2016 vs 2018
-
- Figure 64: Instagram – Top brands by followers & % increase from 2016 to 2018
-
Top 15 Major Players
-
-
- Figure 65: Serviced-apartment & extended-stay branded operators ranked by number of units, 2016/17-2018/19
-
Marriott
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
- Brands
-
- Figure 66: Marriott’s serviced-apartment & extended-stay portfolio by brand & region, 31 December 2017
- Marriott Executive Apartments
- Marriott Rewards
- Residence Inn by Marriott
- Suites
- One bedrooms
- Two bedrooms
- Penthouses
- TownePlace Suites by Marriott
- Current developments
- Recent performance at Residence Inn
-
- Figure 67: Performance of Residence Inn properties in North America, 2016-17
The Ascott Ltd (including Quest Apartment Hotels)
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
- Ascott Residence Trust
- Brands
- Ascott The Residence
- Citadines Apart’Hotel
- Somerset Serviced Residence
- Quest Apartment Hotels
- The Crest Collection
- Lyf
- CapitaLand’s serviced-residence portfolio
-
- Figure 68: Summary of CapitaLand’s serviced-residence capacity by country at 31 December 2017
- Australia
-
- Figure 69: CapitaLand’s serviced-residence portfolio in Australia & Belgium at 31 December 2017
- China
-
- Figure 70: CapitaLand’s serviced-residence portfolio in China at 31 December 2017
- France
-
- Figure 71: CapitaLand’s serviced-residence portfolio in France & Germany at 31 December 2017
- Figure 72: CapitaLand’s serviced-residence portfolio in India, Indonesia & Ireland at 31 December 2017
- Japan
-
- Figure 73: CapitaLand’s serviced-residence portfolio in Japan at 31 December 2017
- Figure 74: CapitaLand’s serviced-residence portfolio in Malaysia, Philippines, Singapore & Spain at 31 December 2017
- Thailand and the UK
-
- Figure 75: CapitaLand’s serviced-residence portfolio in Thailand, United Arab Emirates & the UK at 31 December 2017
- US and Vietnam
-
- Figure 76: CapitaLand’s serviced-residence portfolio in the US & Vietnam at 31 December 2017
- Current developments
- Growth objectives raised
- Technological enhancements yield greater efficiency
- Ascott acquires Tauzia, Indonesia’s leading hotel operator
- Ascott already present in Indonesia
- Hong Kong Citadines development sold
- Ascott’s ties with leading Asian developers to boost pipeline
- China
- Japan
- Thailand
- Leveraging strategic partners and corporate clients
Hilton Worldwide
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
-
- Figure 77: Hilton’s extended-stay brands, 31 December 2017
- Figure 78: Hilton’s extended-stay portfolio by brand, location & asset management structure, 31 December 2017
- Brands
- Homewood Suites by Hilton
- Home2 Suites by Hilton
- Current developments
- All Suites brands by Hilton open 34 properties in Q2 2018
- Notable openings
- Newly signed deals
- A tri-branded property in Chicago
- Hilton extended stay’s modular construction debut
- Sustainable features
- Home2 Suites anchors Des Moines mixed-use development
- Hilton’s meal-kit delivery service experiment
Extended Stay America (ESA)
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
- Paired share structure
- Guest profile
- Frequent-guest scheme
- Hotel portfolio
-
- Figure 79: Extended Stay America’s portfolio by US state, 31 December 2017
- Brands
- Current developments
- Franchising to be introduced
- Future plans
- Extended Stay America continues growth
- ESA’s asset strategy moves forward
- The state of ESA’s asset strategy
- Demand outstripping supply
- Q3 performance, outlook
- Extended Stay’s business-travel programme
InterContinental Hotels Group (IHG)
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
-
- Figure 80: IHG’s extended-stay portfolio at year-end 2017
- Figure 81: Revenue generated by IHG’s extended-stay brands 2016-17
- Brands
- Staybridge Suites
- Property features
- New design unveiled
- Candlewood Suites
- Acquired by IHG
- Current developments
-
- Figure 82: IHG’s extended-stay portfolio by business model & geography, 30 September 2018
- Figure 83: Year-to-date performance in North America to 30 September 2018
-
- Figure 84: Staybridge Suites’ performance in EMEA, year-to-date 30 September 2018
- Figure 85: Q3 & 9-month performance for IHG’s extended-stay brands, YTD September 2018
- Dual-branded EVEN Hotel and Staybridge Suites for Seattle
- Dual-branded Staybridge Suites and Crowne Plaza for Manchester
- Staybridge Suites teams up with TV chef
- Staybridge Suites’ ‘Hugely Different’ brand campaign
Choice Hotels
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
- Franchise fees
-
- Figure 86: Quoted franchise fees by brand as of 31 December 2017
- Brands
- MainStay Suites
-
- Figure 87: Key performance indicators for MainStay Suites’ US portfolio, 2013-17
- Suburban Extended Stay Hotel
-
- Figure 88: Key performance indicators for Suburban Extended Stay Hotels’ US portfolio, 2013-17
- WoodSpring Suites
- Unit details
- Jack DeBoer, the guru of extended stay
- WoodSpring’s business model
- WoodSpring Suites pricing policy
- Current developments
- WoodSpring Suites executes 46 franchise agreements
- A deal for 20-plus WoodSpring Suites
Oakwood Corp Housing
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
- Oakwood Worldwide Acquired by Mapletree Investments
- Brands
- Current developments
- Oakwood launches new website
AccorHotels
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
- Brands
-
- Figure 89: AccorHotels’ serviced-apartment/extended-stay capacity, 2016/17-2018/19
- Mercure Suites
- The world’s biggest Mercure to open in Dubai
- Location by region
-
- Figure 90: Novotel Suites, Adagio & Adagio Access by location, 2018
- The Sebel aparthotels
- Current developments
- Adagio revamped
- Three-pillar concept
- Adagio has introduced ‘Kids Friendly’ guides
- Dual-branded property for Liverpool
- New Zealand’s newest Sebel hotel opens
Mantra Group
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
- 300 hotels and 50,000 rooms
- Mantra has strength in resorts
- Operating structures
- Brands
- Peppers
-
- Figure 91: Peppers’ destinations, 2018
- Mantra
-
- Figure 92: Mantra Hotels’ destinations, 2018
- BreakFree
-
- Figure 93: BreakFree destinations, 2018
- Current developments
- New Mantra properties for Melbourne
Pierre & Vacances – Center Parcs Group (PVCPG)
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
- Business model
- Prospection
- Marketing
- Construction
- Tourism management
- Brands
- Pierre & Vacances
- Pierre & Vacances premium
- Center Parcs
- Sunparks
- Villages Nature Paris
- Key figures
- Maeva
- Aparthotels Adagio
- Key figures
- Current developments
- Sunparks and Pierre & Vacances go to China
- Signed agreements for four destinations
- A resort inspired by Avoriaz in Thaiwoo station
- A word of caution regarding HNA
InTown Suites
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
- Brands
- Corporate customers
- Current developments
Frasers Hospitality
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
- Brands
- Fraser Suites
- Fraser Place
- Fraser Residence
- Modena by Fraser
- Capri by Fraser
- Malmaison & Hotel du Vin were purchased in 2015
- Portfolio
-
- Figure 94: Frasers Asia-Pacific portfolio, 2018
- Figure 95: Frasers European portfolio, 2018
-
- Figure 96: Frasers Middle Eastern & African portfolio, 2018
- Current developments
- Multiple openings in key Chinese cities
Hyatt Hotels
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
- Brands
- Franchise fees
- Current developments
G6 Hospitality
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
- Brands
- Current developments
- International expansion
Wyndham Hotel Group
-
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Overview
- Brands
- Hawthorn Suites
- Current developments
- On-demand food services
Industry Insight: Exclusive Interview with George Sell, Editor of Serviced Apartment News
What Next?
-
- Extended-stay expansion in Europe to intensify
- More consolidation to come…
- Leisure market – Future growth segment
- More multi-brand development
- Segmentation in the sector to spread
- North American brands could prosper in other regions
- Serviced apartments to become more like hotels
- Moving towards a seamless booking process
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