At your service

The demand for serviced residences has been increasing over the past decade, thanks to globalisation, which has driven organisations to increase their international presence.

Keeping an eye on Asia Pacific 

As companies increasingly turn their attention to Asia, with gateway cities like Singapore, Tokyo and Seoul experiencing vibrant growth and Tier-2 cities undergoing rapid urbanisation, serviced residences players are capitalising on this trend and opening up in quick succession.

The Ascott Limited has clinched seven management contracts this year, which will add more than  1,500 apartments to its South-east Asia portfolio. Of its apartment units under development, 40% are concentrated in the region.

“Southeast Asia is a vibrant market for foreign investors. The forming of the ASEAN Economic Community will boost competitiveness and competition and help to increase business activities and FDIs, in turn, driving demand for serviced residences,” said Tony Soh, chief corporate officer, The Ascott Limited.

Similarly, Oakwood Worldwide has announced “an aggressive expansion plan to double its branded portfolio in Asia Pacific in the next three to five years”, according to T.J. Spencer, vice president of sales and managing director of APAC, Oakwood Worldwide. “This matches the 30% increase in growth we are seeing among our global supply chain partners across Asia Pacific.”

In the immediate pipeline is the first Oakwood-branded property in Singapore, Oakwood Studios, which is set to open in November.

Evolving accommodation needs

Companies are now adopting shorter-term assignments to plug skills gaps, and facing pressure to curb spending, leading to more intra-regional travel.

Recognising this shift, Frasers Hospitality’s new properties are configured with more one- and two-bedroom apartments. “We’ve observed that overseas assignments are increasingly shorter – between two weeks to a month. Younger executives are also being deployed so there is less need for a bigger space to accommodate an entire family,” said Choe Peng Sum, CEO, Frasers Hospitality.

The group has plans to total eight properties in Jakarta by 2019, where it has a strong foothold. In Singapore and Kuala Lumpur, the group has four operating properties, with new ones in the pipeline.

The rise of the hybrid traveller

Corporate guests these days no longer look for “cookie-cutter” offerings in a stay and instead prefer to combine business and leisure. This has led to the need for tailored accommodation solutions that cater to their evolving preferences, such as Frasers Hospitality’s unique urban-inspired lifestyle units, Mercedes-Benz Living @ Fraser, at Capri by Fraser in Changi City Singapore. 

Oasia is Far East Hospitality’s answer to filling that void, as CEO Arthur Kiong believes that the brand’s “clear focus on well-being will resonate with their guests” who often have little time to keep up with their health routines because of hectic meetings and changing time zones. 

The group will be opening its first-ever Oasia brand in the serviced residence category in West Coast, Singapore, later this year. “Serviced apartments appeal to travellers who are looking at mid- to long-term stays and a home away from home. We are able to provide great value and services like fully-equipped business centres and kitchens and free shuttles to the CBD, in addition to prime locations of our properties offered at an attractive price point,” Kiong says.

At Ascott properties, guests can experience bespoke, cultural, gastronomical, local and wellness activities, for instance, local language classes, guided tours of the local market and batik-making workshops under the Ascott Lifestyle Programme, which was launched last year. 

Innovation and technology are key factors that help serviced residence players stay ahead of the competition. 

To enhance the guest experience of the entire relocation process, Oakwood Worldwide has recently launched a mobile app that provides easy-to-access personalised information about each stay. Currenly only available to the US market, it will soon be made available in Asia Pacific.

The Ascott Limited has jumped on the tech bandwagon in a big way as it currently test-beds Internet of Things-ready solutions at selected serviced residences such as smart devices that know when it is time to turn on the lights or heat up a coffee pot, or prompts that will allow housekeeping to replace consumables in a timely fashion. 

Said Ascott’s Tony Soh, “Embracing technology is key for any company to remain relevant. As the needs, wants and behaviours of our guests evolve, we must also transform our products and experiences to suit their lifestyles.”