Serviced and furnished apartments for homestay in Bangalore

PUNE: Serviced apartments are fast gaining popularity among individual and corporate visitors intending to stay in the city for long periods. The

concept, which first appeared a decade ago, has today become a strong segment of the city's hospitality sector. From just one property and 27 apartments in 2001, the serviced apartments segment in the city has grown to more than 20 properties and an inventory of over 500 apartments.

Mohammed Aslam, head, Pune at real estate research and advisory company Jones Lang LaSalle Meghraj (JLLM), told TOI that the demand for serviced apartments in the city is being driven primarily by new companies being established in the city. "Many corporates are absorbing manpower from beyond the city's borders and the demand for serviced apartments from transient staff is now very significant. More properties in Pune are adding to their serviced apartment capabilities to meet this demand," Aslam said.

The segment has now broadened as the their offerings are increasing in number, nature and services. While the sizes of the units vary from a studio to a three-bedroom flat, the services range from bed-and-breakfast to full service, including household assistance.

Royal Orchid Golden Suites, promoted by Bangalore-based Royal Orchid Hotels, has 71 studio rooms supported by a multicuisine restaurant and a bar. A drawing room, a well-appointed kitchen and one- to three-bed rooms is, however, the more common format most serviced apartments adhere to.

Real estate firm Naiknavare Developers who run two serviced apartment properties, together comprising 77 units, under the Seasons brand name has gone a step ahead and offered Seasons Luxury Homes. These are much more spacious and lavishly done and are available on rent for medium to long stay. Hemant Naiknavare, director, Naiknavare Developers, said that in India, where limited services (housekeeping and housemaids) are easily available, many small entrepreneurs offer rented, partially serviced, furnished / unfurnished options. Often, Naiknavare said, many long-stay customers of apartment hotels opt for such apartments and move out within a few weeks.

JLLM's Aslam said since April, there has been a marked pick-up in the leasing of serviced apartments and corporate guesthouses in the city. "Even the properties previously put up on the resale or residential rental market by investors are now being converted for such use," he pointed out.

US-based Oakwood Worldwide the only multinational serviced apartments chain present in the city is also expanding. In addition to the 40-apartment Oakwood Premier on Naylor Road, the company is setting up Oakwood Residence, another serviced apartment property comprising 202 units. Priya Nagrani, director of marketing and sales at Oakwood, said there is a strong demand from expat corporate personnel for such options. The expansion of the automobile and IT sectors has seen many foreigners coming to the city for activities such as plant commissioning, she pointed out. Oakwood Premier, for instance, currently houses some 40 expat employees of auto giant Volkswagen.

According to Aslam, there has been a slowdown in hospitality revenue yields in the city. There can be between 20-40 per cent savings on costs at serviced apartments, especially with corporate discounts. Moreover, serviced apartments offer business travellers facilities such as fully-equipped kitchens with self-catering facilities and various bedroom choices. On the pricing side, serviced apartments charge between Rs 6,000 to Rs 11,000 (rack rate) for 4 persons as against the Rs 14,000- upwards tariffs charged by star hotels for two persons.

Sanjay Datta, managing director of realty research firm Cushman & Wakefield said the demand for serviced apartments in the country continues to increase. Corporate travellers, Datta pointed out, express preference for this type of housing over hotels owing to its cost effectiveness and added facilities such as a fully-equipped kitchen, self-catering facilities, choice of bedrooms, lounge and relaxation areas and access to leisure facilities. Corporate travellers can thus enjoy the amenities of a five-star hotel while living a more flexible lifestyle.

"Another cost-effectiveness factor is that in serviced apartments, occupants save on the bar bills, inflated internet and telephone charges as well as restaurant bills that typify most star hotels. In fact, the potential for serviced apartments in the city will increase manifold when improving economic dynamics will once again warrant longer periods of business travel," Aslam said.

Times of India