The serviced apartment sector has developed for years, making its expansion to many parts of the world. More investors are moving into serviced apartment hong kong investments because they find it more profitable. If you check the record of how massive the number of tourists added to visiting HK, you will be surprised.
Smart investors have loosened their belts investing in serviced apartments because they see a clear return on investment.
What serviced apartments are?
Serviced apartments differ from the standard hotels, especially because they are equipped with kitchenettes. The space of the accommodation is divided into some parts, such as:
- living
- bedroom
- dining area
Guests can have self-catering and prepare food for themselves without going out to dine in luxury restaurants. The rates of serviced apartments are lower than hotels, making it friendly to the mass people.
Overnight stays
Serviced apartments have been the fastest-growing real estate properties for many years. They have benefited from the megatrends of urbanization and individualization, which has become a highly sought-after form of accommodation. It offers overnight stays between 1 night to 6 months, making it appealing to a broad target group and providing a high level of flexibility.
Choice of travelers for short and longer stays
The residents are mostly business travelers working in unfamiliar cities for days to months. These renters choose serviced apartments because they offer more facilities and services, such as:
- restaurant
- fitness centre
The length of stay in a serviced apartment is lengthy, depending on the guest.
Investment has a growing serviced apartment portfolio across its home country.
Outperforming the returns of hotels
Serviced apartments outperformed the returns of hotels, in which revenue is available per room. The serviced apartment offers higher profit margins, which results in a higher average check. The operational cost is reduced because of lower staffing levels and fewer services.
The interest of investors in serviced apartments is growing. Many seasoned investors overlook these opportunities. The supply stays tight in some of the fast-growing markets adding to the appeal. The fundamentals may speak for themselves, such as:
- strong growth potential
- higher profit margins
Therefore, serviced apartments are an attractive investment option. There is a great percentage of investors planning to target serviced apartments in the next few years, ranked 6th among the 15 sectors of real estate. Indeed the service apartment has outperformed traditional hospitality.
Considerations when choosing a serviced apartment
A serviced apartment is a great option when looking for a place to stay on a business trip. Serviced apartments offered the convenience and comfort of a home away from home with the added benefits of the homey feel service, such as:
- housekeeping
- front desk support
Many options are available and it is difficult to choose the right serviced apartment to meet the needs. There are considerations when choosing a serviced apartment:
- Consider location
- Evaluating the amenities
- Checking the apartment size
Conclusion
Choosing the right serviced apartment needs careful consideration of the needs and preferences. A lot of investors have received good returns on investment in serviced apartments.
