INVESTMENT PERFORMANCE OF SERVICE APARTMENTS

Abstract

The service apartment industry has only begun to flourish here recently. Its popularity can be seen in the eighties when eleven such projects sprung up, bringing the current total number to fifteen. With the current oversupply situation in the hotel and private apartment sectors, it is ironical that the service apartment industry is instead expanding. Observing this current trend, it leads one to wonder how well the service apartment industry is performing, what are the factors that leads to their performance, and who are the people it is serving. Perhaps one of the main reasons for the gaining popularity of the service apartment is reflected in the following quotation : "A hotel room is too impersonal, especially if the stay is between eight and twelve weeks. Renting an apartment is too impractical as a lease document, often binding for a minimum period of six months, has to be signed. A solution for the expatriate here on assignment or for the "long-term" holiday maker, seems to be service apartments." Indeed, with basic housekeeping services provided along with the short lease on a weekly or monthly basis, the service apartment industry has found itself a niche, bridging the gap between hotel accommodation and private apartments.