Colliers International's latest report identifies the key drivers of the fast growing hospitality segment

Dubai, 26 October 2015- Colliers International ('Colliers'), a global leader in real estate advisory services, today released its comprehensive report "The MEA Serviced Apartment Markets & Guest Experience Index". The report, which provides a detailed analysis of the Middle East and Africa's serviced apartment markets, reveals the opportunity in the sector for international operators to meet a growing demand for high quality serviced apartments suitable for a diverse range of guests.

According to the report, Dubai has the largest serviced apartment supply in the region at approximately 29,000 keys (232 properties), of which 36% of the total supply is managed by international brands. Outside of the UAE, in terms of number of serviced apartment keys, Riyadh follows with 129 properties (approximately 5,500 keys), however, serviced apartments in the city average a lower 43 keys per establishment, with only 2% of the stock managed by international brands.

Commenting on the findings, Filippo Sona, Head of Hotels for Colliers International in the MENA region said: "We have seen a boom in serviced apartments in the more mature markets of Dubai, Abu Dhabi and Doha where it currently exceeds 35% of total serviced apartment supply. However, it is a relatively new concept to the rest of the region where in many instances it is more of an afterthought, with residential buildings being converted into serviced apartments either after or during construction. Further scope exists for developing larger, more efficient, purpose-built properties that follow international operating standards."

"Our research indicates that demand for serviced apartments is no longer being generated by just long-stay guests such as relocating expatriate families, but also, short-stay guests who are visiting a city with their families for leisure purposes. In order to attract this sizeable market away from hotels, serviced apartment operators need to ensure that they are offering the highest levels of cleanliness and service, while also offering value to their guests."

Data from travel and hotel data specialist, Olery which has analysed 140,000 reviews on various hospitality properties within the Middle East, revealed the key differences between serviced apartments and hotels p in the region, based upon guest reviews;

Better value than hotels: Serviced apartments and 5-star hotels in the region have the highest rating in terms of value (better than 3 and 4-star hotels). When considering purely the internationally branded market, serviced apartments received a better value-rating than 5-star hotels.

Service: Internationally branded serviced apartments achieved a higher scoring service than 3, 4 and 5-star branded hotels in the region. As of August 2015, internationally branded serviced apartments consistently outperform unbranded, locally branded and regionally branded properties in the region in each of the scoring segments, namely room rating, value, service, location and cleanliness.

"As a business model, serviced apartments carry less risk that hotels - typically achieving higher occupancy rates and suffering less from seasonal swings. We anticipate that this sector will continue to grow in popularity in the region, and expect that in the next few years we will see an increasing number of global hotel brands moving into the space, "concluded Sona.

CONTACTS
Asia Hildebrand, Marketing & Communications Manager, +44 7481 606 767 asia.hildebrand@colliers.com

Inci Gecekusu, Associate Marketing & Communications Manager +971 55 763 3737 Inci.Gecekusu@colliers.com

ABOUT COLLIERS INTERNATIONAL
Colliers International is a global leader in commercial real estate services, with over 16,300 professionals operating out of more than 502 offices in 67 countries. Colliers International delivers a full range of services worldwide that includes: valuations, consulting, appraisals, brokerage, asset management, project management and research, within the residential, commercial, retail, hospitality, healthcare, education, infrastructure sector, Public Private Partnership (PPP) and economic and industrial free zones. In MENA, Colliers International has provided leading advisory services through its regional offices located in Dubai, Abu Dhabi, Riyadh and Jeddah since 1996. The latest annual real estate survey by Euromoney named Colliers International 'Best Advisor' in the MENA region, UAE, Qatar and Saudi Arabia. Colliers International has been recognized and ranked by the International Association of Outsourcing Professionals' Global Outsourcing 100 for 10 consecutive years, more than any other real estate services firm. 

© Press Release 2015