As the society evolves, so does the services that are provided to cater to the demands of the changing economy, while simultaneously profiting from it. This is what is currently happening in the Hospitality industry in India. A new class of assets is emerging, the Serviced Apartments, in response to the demands of the people who find themselves travelling to another city, either for business, vacation, medical treatment, or any other reason. Serviced Apartments are increasingly becoming a preference even among the people who are just looking for new housing facilities.
What are the Serviced Apartments?
The Serviced Apartments are fully-furnished apartments that provide the basic amenities, as well as hotel-like services to its residents. They are available for both short-term as well as long-term stays. People prefer to stay/live in Serviced Apartments over Hotels or Housing Rentals, because it provides them a good quality, and a high standard of living, that has more of a home-like feel to it, than the other alternatives.
What does the Serviced Apartments mean for the Real-Estate Sector?
But the tenants are not the only people to benefit from this emerging trend. The developers and investors in the Real-Estate Sector stand equally to profit from partaking in the business opportunities created by the growing popularity of the Serviced Apartments. As opposed to Hotels that are dependent on the peak holiday season, Serviced Apartments offer a higher, predictable occupancy rates among the customers who stay for extended periods of time, thus making them a more reliable, and less risky venture for investors and developers alike.
What is the role of the Branded Chain Operators?
The knowledge of the potential a particular sector has, though is promising, but there is a need to practically understand how to harness this potential for the better. This is where the Branded Chain Operators come in. With their in-depth understanding of the technicalities of the Industry in all its aspects, the Branded Chain Operators have the skills and expertise required to monetise Serviced Apartments into assets. Their position in the Industry allows them to assist the investors in managing their Real-Estate Investments in a way that not just secures their investment, but also promises high returns on it.
This is the first mover’s advantage that all business schools are so keen to teach their students. As the market is shaping itself to supply the demand created by the growing travel economy, the increasingly popular remote work culture, over-extended vacations, and other factors, investors in Real-Estate stand to profit by piggybacking with the Branded Chain Operators like the Concord and other Serviced Apartments, and using their professional insights to add value to their own investments.
Therefore, Serviced Apartments are well on their way to becoming the next most lucrative asset class in India. And by the looks of it, it is a trend that is here to stay, as it benefits all the parties involved – the consumers, the service providers as well as the investors.