Serviced Apartments – a temporary home away from home

The Salon Talks hosted by AHGZ & JOI-Design and powered by INTERNORGA recently entered their fifth round. This time the hot topic was temporary accommodation. Eight industry experts discussed developments and trends.

In mid-October, INTERNORGA, together with the AHGZ trade journal and JOI-Design, invited guests to the fifth Salon Talks in Hamburg. Together with INTERNORGA Project Director Matthias Balz and moderator Rolf Westermann, the Editor-in-Chief of AHGZ, eight industry experts from the hotel and investment industries discussed trends, developments and the target group of temporary accommodation.

"Serviced apartments" is a new term that not many people have heard of in Germany, despite the fact that the market is constantly growing. On the German hotel market, the share of serviced apartments is currently at just three percent. Experts are predicting an increase to 10 percent in the next few years. The demand for serviced apartments is being driven by social change, which is influenced by megatrends like customization, urbanity, the culture of knowledge and "new work". And INTERNORGA Project Director Matthias Balz agrees: "More than anything we are noticing a trend for customization, which of course we are also trying to incorporate."

The biggest driver of serviced apartments is "new work". The offer is therefore aimed primarily at employees who often have to move to a different city or even country for their jobs. But consultants, who carry out projects in foreign cities over several months, and students are also increasingly using this service. On average, serviced apartments are occupied for 70 days. Guests want to be able to settle in right away. A gym, relaxation lounge and concierge service are standard expectations.

The majority of users are business people (around 70 percent), but the leisure market also makes up an important share. Especially in metropolises, serviced apartments provide attractive accommodation for holidaymakers. Depending on the concept and situation, individual shifts are already being identified, suggesting that this share could increase to 40 percent.

The discussion panel's conclusion: megatrends are showing us where the journey in the serviced apartments segment is headed. The utmost priority is to create a temporary home away from home for the guests, where they feel right at home – without having to forgo any of the technical comforts they expect to come as standard.