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India’s hospitality industry sees a rising demand for serviced apartments from business travellers, reports

Imagine a luxury hotel room with all the expected amenities — high speed wifi, 400 count Egyptian cotton sheets, a perennially well-stocked coffee/tea unit, an iPad interface that controls the room’s electronic functions. Expand this space to a larger area with your own living room and kitchenette so you can either prepare meals for yourself or opt for room service. You are in a separate tower of one-, two-, and three-bed serviced apartments, but part of a luxury hotel property. Even though you have a separate entrance, you are allowed access to all facilities of the hotel — breakfast buffet, housekeeping, wifi, room service, laundry, gymnasium, spa, pool and a sense of security. All these enhanced hospitality facilities are packaged and served to you at a bargain, in comparison to checking into a standard hotel room. These are exactly why serviced apartments are proving popular for longer stays.

As Anil Chadha, Area Manager South, ITC Hotels and General Manager ITC Grand Chola says, “These apartments are the more popular and economic choice for long-stay business travellers, mainly expats. They offer guests with the additional comfort of a house as the rooms come attached with a kitchenette and a living room.”

Up until two decades ago, guest houses were all the rage for office executives whose visits culminated into a year if not more. Such lodgings have been an age-old concept in India where accommodation with bare minimum facilities are offered at negligible rates. Should you wish to eat, there may or may not be a cook on the property, and even he must be informed well in advance.

Guesthouses still exist, but the trend of serviced apartments in India has revolutionised this. The advent of India’s IT, ITES, medical and finance industries on the global map has seen a two-way traffic of business travellers, most of who demand a certain level of comfort during long-stays. In fact, the demand for serviced apartments extends to those in the city for a short week even.

As of today, serviced apartments in India is still a niche market, but one that is gradually expanding. “We are looking to take over guest houses, or play that role,” says Jai Kishan, General Manager, Novotel Kolkata Hotel and Residences.

As the financial capital of India, Mumbai alone has over 400 units of serviced apartments at a five-star level from Taj Wellington Mews, Lakeside Chalet Marriott Executive Apartments, The Grand Hyatt Residences and The Grand Residences by the Inter Continental. There are plans to equip Bengaluru, known for its IT industry, with up to 500 units from Hilton International, Oakwood, Le Meridien and the Brigade group. And the Delhi--

NCR region will see the launch of an additional 500 units from Marriott Executive Apartments, Oakwood, Westin and The Leela in the coming years.

Ramesh Daryanani, Area Director, Sales and Marketing, South Asia Marriott International rationalises the two main causes for the rise of serviced apartments in India. “The most predominant reason is that the implementation of projects, particularly in the information technology sector and setting up of new businesses require that travellers stay in the country for longer durations. In such cases, serviced apartments, given the facilities provided as well as their cost benefits, become an ideal choice for organisations. The second reason is that families now-a-days prefer larger rooms during their travels. Enhanced in-room facilities and the option to travel with friends where they can share a common living area make a serviced apartment a preferred option.”

For a business traveller, the thought of returning to a 41 sqm hotel room each evening for months can be unsettling, let alone a year. Parveen Chander, General Manager, Taj Wellington Mews says they have even had guests for about eight to nine years since their launch in 2004, as serviced apartments are calculated to be a more feasible, not to mention, convenient option.

This begs the question, wouldn’t a rented apartment prove more economical? For expats, hunting for an apartment to lease can be tedious as the Indian market for rental units is still a neglected one. “Renting an apartment comes with a lot of hindrances such as fixing the place to make it more liveable, paying monthly bills, looking for a convenient laundry option (washing machines and dishwashers are still a luxury in India), and having the feeling of being safe. Serviced apartments have that edge because all ancillary tasks and errands are taken care of. A simple task of getting your morning coffee can be tedious in your own apartment because you have to stock up on your sugar, invest in a coffee maker etc. In a serviced apartment, everything is in place for you,” says Kishan.

Most apartments have their own list of additional value-added services to ensure a more comfortable stay. Novotel Kolkata Hotel and Residences provides an assistant to help with the chopping of vegetables and at no charge, should the guest wish to cook for himself. Marriott Executive Apartments Mumbai has a tie-up with a grocery store that offers free home-delivery and items are sold at market price. Taj Wellington Mews Mumbai welcomes you with a pet-friendly policy.

The rising competition in this space has led to enhanced facilities that are at par with hotels, and serviced apartments are offered at competitive prices. When opting for a serviced apartment vs. a hotel room, guests end up saving anything from 15-20 per cent, as well as benefitting from a homely feel and the sense of being looked after. When asked about how hospitality groups benefit from such projects, Chander says, “Permanency of the resident ensures a steady inflow of additional revenue to the company.”

Realising the potential for serviced apartments in the hospitality industry, a lot of independent players have entered the competition too. Their services may not be at a luxury level, but their three-star accommodation promise the basics like 24-hour concierge, in-room dining, laundry and housekeeping.

Here is a round up of the more popular serviced apartments in India — luxury and budgeted.