A business model that pays off

Success comes from identifying the right business opportunity and recognising its potential for growth. With a quarter century of experience and a sterling track record in the industry, we have proven that the serviced residence model trumps other accommodation types in terms of sustainable profitability.

Understanding the differences

  Serviced Residence Hotel Rental Apartment
Lease Terms Variable; one day to one year or longer Short-term; typically less than a week Long-term; typically six months to a year or more
Occupancy Trends Stable occupancy; combination of both long and short stays Cyclical as dictated by the tourism industry; some seasonality in the hospitality trade Highly dependent on the rental property market condition
Services Relatively limited Full range Minimal or none
Staff More efficient staffing due to limited services Guests expect a comprehensive range of services that require higher staffing levels Least possible staff requirements
Profitability margin High Reasonable Good

For you, what this means is a host of competitive advantages – the same ones that Ascott has astutely leveraged to attain its world-leading status today.

Stability

  • Cater primarily to long-stay guests
  • Less dependent on seasonal travel patterns
  • Protected against demand shocks

Lean costs

  • Healthier balance between lease terms and maintenance cost
  • Guests more likely to treat their serviced residences with care
  • More efficient staffing

Broad customer base

  • Three distinct serviced residence brands
  • Better positioned to meet the preferences of different customer bases
  • Varied locations, apartment configurations, service and facility offerings