Over the last few years, the development of Xiamen’s hotel industry has advanced significantly. The Hubinnan Road Area, home to some star-rated hotels, including the Kempinski Hotel, Xiamen Minnan Hotel, Xiamen Airlines Lakeside Hotel, and Swan Hotel Xiamen, has been enjoying the arrival of new hotels for decades.

The travel accommodation on offer around the Xiamen Hubinnan Road Area has come a long way in recent years. The serviced apartment is one accommodation model that is popping up in and around the area, and is a form of travel accommodation that is becoming popular for business travelers and young families alike.

So why are some seasoned travelers abandoning the hotel scene and deciding to book extended stays at serviced apartments instead? There are several reasons for this trend that include, but are not limited to, the greater comfort, privacy and competitive pricing options offered by most serviced apartments. Serviced apartments may be also be classified as corporate housing or extended stay efficiencies. Both offer more of the comforts of home than a standard hotel.

However, serviced apartments are now facing increased competition from condominiums and apartments offering a similar level of comfort and amenities in the same area of the city, but at a lower price point. Competition on rents and services between serviced apartments and buy-to-let apartments is continuing to ratchet up pressure on the rental market.

The serviced apartments in mix-used projects have clear advantages compared to the buy-to-let ones. But buy-to-let apartments are gaining favor with many customers due to flexible, lower rental costs. According to Miss Huang, an employer who is renting an apartment from an individual along the Hubinnan Road, she can have a larger apartment with a lower rent. But the more important thing, she said, is that she can negotiate with the landlord whenever the price in the market goes up or down.

“My landlord is quite flexible and I feel the prices we agree on are fair,” Miss Huang said.

The move away from serviced apartments towards buy-to-let apartments started a while ago and travelers are increasingly switching to traditional buy-to-let ones over serviced apartments to reduce costs. The increased availability of buy-to-let apartments in conjunction with a decelerating economy is now playing havoc with the once-booming business of serviced apartments and guesthouses.

SOURCE: WOX news by Jane Ruan

Advertisements