Country’s ‘dormitel’ capacity seen to increase by sixfold
The country's capacity for upscale dormitories with hotel-like accommodations, known as “dormitels,” will expand by sixfold in the next couple of years, a statement showed.
This, to accommodate the growing demand among young professionals who prefer to stay in comfortable and relatively inexpensive quarters near their central business district (CBD) offices.
“What buoys up optimism among dormitel developers is this bit of information: Almost all the dormitel properties in the pipeline are leased out,” Cushman & Wakefield Philippines analyst Alessandra Gaborni said.
To be specific, the Cushman & Wakefield study showed that dormitel capacity, estimated at 1,400 beds in the Bonifacio Global City (BGC) and Makati CBD area in 2017, will expand to 5,300 beds by 2018 and to 10,200 beds by 2019.
The study said that for a while this segment of the property market for young professionals remained unserved.
That was true until new and small property developers discovered and offered a new concept in small-space urban dwelling through dormitel. Dormitel derives its name by coining the words “dormitories” and “hotels.” It lives up to its name by offering hotellike amenities in a dormitory setting. Like the hostels, dormitels offer budget-friendly rates and a sociable atmosphere.
“But unlike the hostels and typical dormitories, dormitels come with swankier amenities to suit long-term stay,” Gaborni said.
“For some young professionals with more selective tastes and needs, and who also long for privacy, the amenities offered by typical dormitories are inadequate,” she added.
According to Gaborni’s study, “the biggest driver for employees to move into dormitel buildings is the need to locate close to their workspaces. “A Makati employee who lives in Quezon City would typically spend R3,000 to R4,000 every month to go to the office and go back to his/her home. Those living farther from Makati will spend more money — and time — for travel," Gaborni said.
“With the worsening traffic in the metro, coupled with rising transportation costs, employees are better off allotting R4,000 to R5,000 for a space in these dorm buildings. From their dorms, it will take them something like a 20-minute walk, or an eight-peso tricycle ride, to get to their offices in BGC,” she added.
A dormitel tenant rents a bunk bed in a room of two to four people, but he/she enjoys the luxury of an en suite bathroom, an individual work desk, a locked cabinet, and a kitchenette usually equipped with a mini fridge and a microwave.
Like those staying in modern hotels, tenants gain access to rooms and buildings via RFID cards or biometrics.
In the report, Gaborni listed some of the existing and upcoming dormitel projects. For instance, MyTown, the trailblazer in the business, rents out 800 beds spread over its three existing locations: MyTown Paris, MyTown London, and the 653-bed MyTown New York. Its aggressive pipeline of at least 5,000 additional beds across 13 buildings within the next two years suggests a stellar performance.