In
March 2004, a Bangalore-based Business Process Outsourcing firm
retained Elizabeth Barker, an American voice and accent trainer
for a four-month training assignment. Barker was thrilled to land
the project, but she wasn't overjoyed at the prospect of staying
in a hotel for an extended period. The last time she had done so-trainers
like Barker are much in demand in India-she had found the room small,
the service, impersonal, and the tariff, high. "I missed the
small things," recalls Barker. "Like ordering a pizza
from outside, something I was dissuaded from doing by the hotel."
So, on the recommendation of an Indian friend, Barker decided to
stay in a service apartment, a decision she hasn't had cause to
regret.
Across the country, people like Barker are
discovering that India has woken up to the service apartment revolution.
Make that 'parts of India': while service apartments can be found
in Delhi, Mumbai, and Bangalore, Hyderabad, Kolkata and Chennai
are still 'guest-house' territory. The immediate reason for the
boom-it is nothing short of that, especially in Bangalore-is the
increase in number of long-stay visitors, a direct result of the
it-enabled services revolution in the country, and India's growing
importance to multinational companies. The it-thing rings true:
Delhi satellites Gurgaon and Noida, both it and ITEs hubs play host
to several service apartments. "Long-stay guests like some
facilities that only a service apartment can provide," says
Arjun Baljee, Director, Royal Orchid, a Bangalore-hotel, and the
head of the Baljee Group that is currently expanding its eight-month-old
business of service apartments. "Every sixth hotel in the world
is an apartment hotel," adds Rajeev Menon, General Manager,
Lakeside Chalet Marriott Executive Apartments. "(A service
apartment) takes the anxiety out of an extended absence from home
and helps one settle in by providing a warm, familiar environment."
There are other benefits (see Why Service Apartments?) ranging from
price to freedom; Barker, for instance, can order any take-away
she wants from a service apartment.
WHY SERVICE APARTMENTS? |
PRICE:
A typical service apartments works out 25-30 per cent
less expensive than a star hotel with similar facilities
SPACE: A suite (Rs 15,000
to Rs 20,000 a day) in a star hotel is typically around 1,000
square feet. A three-room service apartment could be as big
as 2,000 square feet and cost around Rs 5,000-7,000 a day
PERSONALISATION: For long-stay
guests, most service apartments customise everything from
the furniture, the décor, the bed-linen, even the colour
of the drapes
FACILITIES: Service apartments
offer all the facilities of a star hotel (think gymnasium,
swimming pool, 24-hour restaurant, room-service, laundry).
In addition, most come with fully-functional kitchens. Better
still, pets are allowed
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A typical service apartment resembles a cosy
apartment: a well-furnished lounge equipped with TV and DVD player;
a bedroom or two; a closet; a safe; a kitchen replete with appliances;
even groceries. And for long-stay guests there's the added benefit
of personalisation. "Our long-stay guests can even choose the
colour of the curtains in their rooms," laughs Rahul Singh,
Marketing Manager, Halcyon, Bangalore's largest service apartment
complex with 70 suites in gated enclave Koramangala. Halcyon even
offers the service of a dog walker to look after the needs of the
pets of the guests. "My 10-month old dog is here with me,"
gushes Maria Teresa Salvador Juaree, a 29-year-old Spanish engineer
on a nine-month assignment in India (she works with Ericsson). "My
parents are also currently here on a visit; all this would not have
been possible at a hotel."
The concept seems to have caught on with most
service apartments doing reasonably well. For instance, Wadia Parkash,
the CEO of Ascot Hotels, which runs Savoy Suites, a 44-unit service
apartment complex in Noida, claims the average occupancy is between
70 and 80 per cent. Understandably, a clutch of real-estate developers
such as Brigade Group (Bangalore) and Vipul Developers (Delhi) and
other entrepreneurs are jumping into the fray. And international
majors such as Oakwood from the US and Shangri-La Hotels, one of
Asia's leading luxury hotel chains are reported to be testing the
waters. Halcyon's Singh expects the market to grow by 20 per cent
a year. "We are looking at expanding all over Southern Indis
in the next 12-18 months," he says. "Our current complex
has an occupancy rate of 90 per cent, so we may have to add capacity
here too." That spells great news for people like Barker and
Maria Teresa.
additional reporting by Abir Pal and
Aditya Wali
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