Hotel vs. serviced apartment in a hypothetical hospitality development scenario

Hotels fall under the category of business. There are several ways to categorize different hotel apartment singapore types, including target audiences (business or leisure travelers), positioning (economy to luxury), or service levels (limited service to full service). But each one is marked as “short-term” in terms of the duration of the visitor’s stay. Except for the extended stay model, most hotels are set up to accommodate stays of one or a few nights and don’t put as much emphasis on meeting the needs of guests who intend to stay for a longer period. In their most basic form, serviced apartments offer a lodging option for travelers who require a homey atmosphere to improve comfort for longer-term visitors.


Larger Rooms – typically more than 55 sm for Upscale brands and between 32 and 45 sm for Midscale brands or Aparthotels.

  • Cooking Area – Normally, serviced apartments must have a full kitchen, or at the very least, a kitchenette corner.
  • Reduced Front of House: The lobby and luggage storage are usually much smaller than they would be in a hotel.
  • Reduced F&B Space: Breakfast is typically the only meal served in Midscale Serviced Apartments. In some circumstances, the food and beverage options can be integrated into the multi-purpose reception area as a “grab & go” concept. F&B outsourcing might also be a good choice.
  • Reduced Amenities – Serviced apartments typically do not require amenities like spas, conference rooms, or executive lounges. A gym is still required and a pool could be provided.
  • Social Space: It’s crucial to establish social spaces for visitors to mingle and mingle. A library, pool area, or gaming area is frequently added as part of the social space in more upscale properties. A kids club is an excellent addition for families. Developers must take into account the needs of the new breed of business travelers, who frequently interact socially and with the community while on a business trip.
  • Here’s where things start to get interesting: Guest-use Public Spaces. Developers frequently offer automated services, especially in the Midscale category, to lower operating costs while maintaining the highest level of guest comfort. For instance, a laundry room with a laundromat and ironing boards enables visitors to do their laundry for less money. When a dependable service provider is accessible, vending machines are frequently used to provide F&B options around-the-clock.


The serviced apartment concept was initially created to meet the needs of corporate travelers who need a comfortable place to stay during short to medium-term assignments as well as those who are moving and need temporary housing. However, in recent years, the serviced apartment industry has innovated to update the conventional long-term model to be able to attract both media- to long-term guests and short-term transient guests in the quest for higher yield. Travelers are now more receptive to the idea of “non-hotel” and Serviced Apartments, which are becoming more and more popular, thanks to the growth of the “home stay” concept through new peer-to-peer platforms like Airbnb.

In terms of customer interest in and readiness to try new products, condotels and apart-hotels have also been gaining ground.

The traditionally serviced apartment operators are currently focusing more on short-term visitors as they work to apply a cap to long-term visitors and gradually increase the proportion of short-term visitors. However, concerns about its feasibility arise in light of the variations in facilities and operational features.


Many hotel operators use well-known brands with a slight name change, such as Novotel Suites or Holiday Inn Suites, instead of developing their own distinct serviced apartment brand. But as this industry develops and demand rises, some global hotel operators have begun to develop specialized brands to cater to long-term-oriented properties, such as Executive Residency by Best Western or Shama from Onyx Group. Operators with a focus on serviced apartments include Frasers and Ascott.


From a commercial perspective, the operating revenues and costs of hotels and serviced apartments differ significantly. Due to the inherent nature of short-term business, hotels are typically able to achieve higher rates per room. In addition, hotels generate more money from ancillary and F&B businesses. On the flip side, hotel occupancy is much more erratic and operating expenses are significantly higher. In light of higher revenues and higher expenses, the question of profit arises.