Extended Stay Apartments: Thinking Outside the Box

The forces of globalisation mean businesses are now frequently working across borders. This brings with it a new breed of traveller: the executive expat. But what does this shift in labour patterns mean for the hospitality industry? Tom Chesher investigates.

Research shows that expat populations are on the up, and it’s a trend that looks set to continue. In the 13 th annual GMAC Global Relocation Trends Survey, most multinational companies projected a growth in expat populations, with 68% predicting an increase and 7% expecting similar volumes during 2008.

The expat experience

For these expat workers there are ample rewards, but also some serious challenges. In a recent survey for Executive Expat Life, sponsored by Marriott Executive Apartments (MEA), 51% identified language as the biggest problem with long stays abroad, followed by work issues (37%), limited time to explore the new country (32%), staying connected to family and friends (28%) and adjusting to cultural differences (27%).

The expats surveyed had various strategies for dealing with these challenges, from meeting local people and using video conferencing to fixing food in their own kitchens. But in one area they all strongly concur: quality accommodation was essential. In fact, 82% of participants stated that their MEA location/neighbourhood was important, with many identifying the need for in-room technology (80%), fitness centre (68%) spaciousness (64%) and maid service (63%).

“I like to tell my family how good it was to find a place that was within walking distance of my place of work.” explains Vance, an aerospace executive from Seattle who is staying in the Marriott Executive Apartments, Shanghai Pudong for 12 months. “I wanted a place where I could feel at home and not feel like I was living in a temporary place.”

And this exemplifies the issue. In the past, many expat travellers have had to make a compromise, choosing between the luxury of a hotel and the convenience and space of their own apartment. Neither option quite satisfied the needs of executives like Vance. But to meet this growing demand, new extended stay apartments are emerging around the world.

Designed for living

The whole idea of the extended stay apartment is thought to have emerged in the US recession of the 1980s when unsold condominium apartments were rented in desperation as hotel suites. The idea proved popular and quickly spread worldwide, thriving in dynamic fast-growing cities.

So what exactly is an extended stay apartment? Traditionally they include a living room, dining room, bedroom and a kitchen. But many companies have taken this basic spec further. For Marriott, a serviced apartment offers all the luxury of a top-notch hotel, with the added benefits of freedom and flexibility.

Kim Snyder, Marriott’s Director of Field Marketing, UK, Ireland, Middle East & Africa explains: “to perform at your best it is essential you have the right environment around you – and that is what these apartments are all about.

“You get a fully finished apartment with kitchen facilities and an entertainment centre, but this is all complemented by round-the-clock staffing, grocery deliveries, security and laundry, not to mention fine dining and cutting-edge fitness facilities.”

There is also a significant economic benefit to choosing an extended stay apartment above a hotel room. For travellers, these apartments cost may vary depending on the length of stay and the type of apartment and they offer much more in terms of space and comfort. At the same time, it makes perfect sense for many hotel developers who benefit from lower construction costs and higher occupancy rates over longer time periods¹.

Loyal executives may find there are other benefits from choosing the extended stay option. For example, Marriott Rewards members who stay at Marriott Executive Apartments now have unlimited point earning potential.

Members receive 2.5 points per US dollar spent and one elite night credit for every three nights spent at a Marriott Executive Apartment. These points can be exchanged for hotel stays, frequent flyer miles, car rentals, retail merchandise and more. All of this can add up to some significant extra benefits for the expat resident.

Note 1… http://www.hotel-online.com/Trends/Andersen/2000_ExtendedStay.html

A growing trend

Many hotel brands are already providing Executive Apartments, but for one of the world’s largest brands this is seen as a major growth opportunity.

Marriott Executive Apartments recently signalled a rapid expansion in this area, with their number of services apartments expected to double in the next 36 months. Today Marriott operates 16 MEA properties in 13 countries outside the US, and 15 more hotels are planned in countries including Qatar, Thailand, Egypt, China, India, The United Arab Emirates and Saudi Arabia.

In April 2008, the group opened the 160-unit MEA in Atyrau Kazakhstan. And two new developments are also on the verge of completion, with Bahrain opening in July and a new site at Doha City expected to open in March 2009.

Making a house a home

Crucially, these apartments are more than just places to stay. Patty, a spouse accompanying her husband on a two-year assignment from Houston, Texas, lives in an apartment at Palm Springs Beijing with expats from the U.S, Brazil, Austria, Italy, Norway, India and China.

Patt explains, “we actually joke about the MEA being like a dorm as we have become close friends even in the short time I have been here. We plan outings, exercise, shop, carpool, golf and eat dinner together several times a week. What a group!”

For other residents, these apartments become their own space, tailored around their style and way of life. Gina, an automotive executive from Boston, is staying for two years in Shanghai and has furnished the apartment herself. “I love the fact that I can customise my place with purchases I make while out here in China.”

A positive experience

These changing trends in global accommodation are helping to make the expat experience more enriching and enjoyable. Of the executives surveyed 93% said the positives of the expat experience outweighed any negatives. Most cited the cultural experiences they were having (85%), their ability to travel on personal time (65%), financial benefits (62%) and new contacts and friendships (59%).

But behind all of this positive thinking, it is easy to overlook the basic influence of where and how people live. By thinking outside the traditional hotel ‘box’, expats are settling in to a new more fulfilling way of life on a personal and professional level. And that can only be a good thing.

Note: the 191 respondents of the Executive Expat Life survey were current and recent guests of Marriott Executive Apartments in Asia, the Middle East, South America, Europe and the UK. Most of them reside permanently in North America, Asia and Europe.