Pet-friendly

The surge in demand for pet-friendly apartments, which experienced a notable 20% increase during the pandemic, has seen a slowdown. This shift is attributed to the ongoing cost of living challenges and the gradual return to office routines. Nevertheless, pets continue to be a favored aspect of accommodation for individuals undergoing relocation stays.

Traveller wellbeing

The heightened focus on wellbeing and mental health, prompted by the pandemic, has continued to develop. Customers are now placing greater importance on understanding the local surroundings and available experiences. For instance, being in close proximity to parks for leisurely walks or runs is a priority. Additionally, having easy access to entertainment venues, popular cafes, and supermarkets contributes to the overall comfort of travelers.

Rise of global nomads

In the evolving landscape of hospitality, a new guest demographic, known as Global Nomads, is emerging. These individuals, often with jobs allowing location independence, seek diverse and character-rich accommodations as they move around for work.

Co-living has become an attractive option for this growing audience, offering a cost-effective primary address solution. Global Nomads, typically younger individuals, can easily transition to co-living developments for short-term stays of three to six months, enjoying the convenience of inclusive bills.

The new 800 room aparthotel concept by Townplace West Kowloon reflects the fluidity between these two formats. Offering stays of one, two, and three nights, this conversion demonstrates the seamless transition from serviced apartment to hotel, showcasing the potential market overlap based on developer targeting.

As industry lines become blurred, the end-user perspective remains indifferent to whether an accommodation is termed a serviced apartment, aparthotel, or co-living space. At the end of the day, it's about providing a comfortable place to stay for individuals embracing a nomadic lifestyle.

Streamlined booking

Corporate clientele now expresses a preference for a streamlined digital booking process, complemented by the personalized touch of expert consultants. This desire arises from the abundance of information available online, making it challenging for customers to navigate and make sense of the myriad options. Additionally, the appeal lies in the on-demand experience, offering reduced rates and time efficiency.

Corporations in Hong Kong are strategically aligning with travelers' desires for ideal locations, top-notch service, ample space, and comprehensive amenities, all while adhering to procurement objectives centered on ESG (Environmental, Social, and Governance) considerations and duty of care. While cost is typically a primary concern during the planning phase, factors such as service quality, reviews, accreditations, and overall value emerge as decisive factors in the final selection.

Despite a general increase in supply in tier 2 and tier 3 locations across Hong Kong, certain areas still command a premium. However, in scenarios where location flexibility exists, such as with intern placement groups or short-term project workers, the significance of travel time becomes more pronounced. The well-connected transportation infrastructure, like Hong Kong's efficient public transit system, ensures that people can move swiftly between diverse districts, optimizing travel time and efficiency.

Beyond location, the allocation of space emerges as a crucial consideration, particularly for travelers on extended stays in Hong Kong. One-bedroom apartments are frequently sought after by those staying for 1 month or more, although senior executives may request additional bedrooms to accommodate family members visiting during weekends or holidays. This nuanced approach highlights the careful balance between fulfilling business objectives and providing a comfortable, home-like environment for corporate travelers.

1. Continuous Growth: Hong Kong's serviced apartment usage has experienced a decade-long growth trend, spanning business travel, mobility, and leisure guests, although bleisure trips remain modest compared to predictions.

2. Value Demand: Corporates seek added value from suppliers but are cautious about paying for enhancements. This puts pressure on intermediaries and suppliers as customer needs become more complex and costly.

3. Sustainability Concerns: The need for speed in virtual operations may be unsustainable, making traditional operators vulnerable. Financially robust providers are likely to weather the storm.

4. Global Dynamics: Europe remains the epicenter of serviced apartment demand, with concentrated growth in established markets like London and Singapore.

5. Cost vs. Wellbeing: Corporates weigh the cost concerns of total stay expenses and value for money when choosing between serviced apartments and hotels, all while prioritizing traveler wellbeing.

6. Sustainable Sourcing: Sustainability drives the sourcing of serviced apartments, but a significant portion of corporates and operators have yet to calculate their GHG emissions or set carbon reduction targets.

7. Evergreen Needs: Despite the rise of digital nomads, the fundamental needs of serviced apartment users—connectivity, cooking facilities, and in-house services—remain unchanged.

8. Managerial Priorities: The appeal of serviced apartments to travel and global mobility managers centers around traveler safety, guest experience, and policy compliance.

9. Sector Maturity: The growing maturity of the serviced apartment sector is evident in content availability in self-booking tools and the increasing interest in Home Stay and Co-living products.

10. Alternative Models: Home Stay products gain market share among business travelers, with over half of corporates using them, and growing interest in Co-living.

11. Co-living Industries: Industries considering Co-living include engineering, professional services, tech, and video game development.

12. Distribution Maturity: The maturity of serviced apartment distribution is reflected in rich content availability in self-booking tools and the preference for specialist serviced apartment agents as the booking channel.

13. Supply Challenges: Insufficient supply in required locations remains the biggest barrier to serviced apartments gaining market share, as operators face challenges like the global economic crisis and local planning.