This is why serviced apartments are performing so well in Nairobi

The beauty of investing in real estate, other than the stability, is that there are many different ways to invest in property. In Kenya, there are a number of real estate asset classes that have been performing consistently better than others in the last few years. Today we will highlight our most favorite: serviced apartments.

Investing in serviced apartments in Nairobi

Serviced apartments are part of the relatively recent accommodation products in the hospitality industry that have attracted huge popularity in the recent past, thereby creating enormous competition to the conventional hotels. They have emerged as an appealing alternative to the standard hotel product especially to the corporate guests and personnel relocating temporarily or permanently.

Why is it a good idea?

Serviced apartments are a hybrid of the residential apartment sub-sector and the hotel market. Their aim is to fill the gap between a short hotel stay and longer-term rental accommodation. One of the keys to its success is the ability to generate a higher gross operating profit and net operating income than the average hotel. This is achieved through lower guest turnover because the length of stay is longer than that of regular hotels and lower operational costs are achieved by providing fewer and less frequent services.

Is there an ideal way to get in?

In order to Maximize returns as an investor looking to get into the serviced apartments business, a good option is to get into a serviced apartments development before it reaches the market. By this I mean, buying the investment while it is still under construction or even earlier. Usually, this allows you to pay much less for the unit, sometimes up to 25% cheaper than the value of the unit on completion.

A good buy would be a generously sized unit, with amenities one would ordinarily find in a hotel like a pool, equipped gym, a restaurant etc.

Source | Sterling Partners

Why You Should Book a Serviced Apartment

8 Reasons Why You Should Book a Serviced Apartment over a Hotel

Ever wondered why you should book a serviced apartment over a hotel? Well, we are here to make that process of deciding easier.

We must all agree that nothing is quite as refreshing as a holiday. It always gives you the opportunity to unwind, relax, and enjoy a bit of time either alone or with family.

However, it doesn’t end there. Second in line is choosing your destination and picking the right accommodation. Unfortunately, if you are not careful, this could just ruin your holiday!

Choosing your accommodation may result in you or your family having a comfortable holiday or a stressful one. We are here to strongly advocate for Serviced apartments as a great option for every kind of traveler.

Here is why:

  1. Space

We all love space. Be it in our own homes or away from home.

There’s nothing quite stressful than arriving at your booked accommodation after a long flight or road trip to find that you’re stuck with a cramped shoebox of a room. Serviced apartments provide a generous living space with room to rest and recuperate. On average, serviced apartments are 30% larger than a hotel guest room, so this makes them an ideal solution for travelling with others, particularly children.

Serviced apartments also tend to include a kitchen, living room, and bedroom area. This can either be all in the same studio space or in a 1 or 2 bedroom apartment. This makes travelling convenient for those wanting to continue cooking meals or saving money on food while away on holiday.

  1. Carefree Family Holidays

Travelling with the family can sometimes be a stressful experience, but with the right services, you can take the hassle out of family holidays. Serviced apartments provide ample space to avoid that claustrophobic feeling of having the kids in the same space as yourself. You’ll also have private access to up-to-date entertainment systems like large TVs, DVD players, and in some cases, pay TV as well. This makes serviced apartments an excellent option for those who might need to entertain guests while on holiday.

  1. Cost Effective

You don’t have to downgrade to 2 stars to make your trip affordable. Serviced apartments give you luxury accommodation without the hefty hotel price tag. Not only will you have comfortable and stylish apartments at an affordable price, but you can save by cooking all your meals in the kitchenette and storing groceries in your apartment fridge.

Eliminating or cutting down on the meals you eat out will make a huge difference to your holiday budget.

You can use the money you save to do more shopping or spend more on memorable experiences in your chosen city. When looking for prices of apartments, you may be pleasantly surprised to find that many are priced competitively to hotels, and are sometimes even cheaper than staying at a cramped hotel room.

  1. That ‘Home Away From Home’ Feeling

Many people choose serviced apartments because they have that ‘home away from home’ feeling. Instead of a cold, unfriendly hotel room, you’ll have a large accommodating room with comfortable furniture and a relaxed atmosphere.

You’ll no longer feel a sense of being homesick if you stay in a serviced apartment. Instead, you’ll feel like you’re staying at your new (temporary) home, which is only going to give you more time to relax while on holiday.

The added privacy of serviced apartments will give you comfort as you unwind. Having all your amenities and eating needs taken care of in one well-thought-out space will give you peace of mind as you don’t have to worry about sharing cooking or washing spaces as in hostels or some motels. Having home comforts such as DVD player, music systems, Wi-Fi, and private telephone line all make the experience even more comfortable.

  1. Centrally Located

Having your accommodation close to the city hubs can add immeasurable enjoyment to your holiday. Longonot Place Serviced apartments are located in Nairobi’s CBD. These are ideal locations for those who want to spend their days shopping in all busy shopping centers and boutique stores. Having all of the city’s most iconic and breathtaking sights at your doorstep will make your trip a breeze.

The hottest restaurants and nightclubs will be a quick taxi ride away. You can easily spend less time worrying about how you’ll get from A to B and instead spend more time having a good holiday.

  1. A Customized Experience

Staying in a serviced apartment is an experience like no other. You can have a customized service that really cannot be achieved in a standard hotel room stay. You can call ahead and ask for some requests such as calling ahead for secured parking. Or perhaps you want some of your favorite snacks stocked in the kitchen pantry. Serviced apartments are often accommodating to such requests.

  1. The Best of Housekeeping

Staying at home you often have the hassles of cleaning up after yourself every day so that you’re not living in your own filth. Many opt for a hotel room as they want to have some service while out for the day, such as the bed being made, and having some fresh towels. Some hotels won’t even provide this service unless you’re staying for a specific period of time set by them.

A serviced apartment, however, means that you can stay in the comfort and luxury of a ‘home away from home’, plus have the added benefits of great housekeeping services. Cleaning and a daily linen and towel service is often standard with serviced apartments, so you needn’t lift a finger during your stay.

  1. Great for Business or Pleasure

Whether you’re looking for somewhere to stay with the whole family, or somewhere to stay while on a business trip, you can’t really go past the convenience of a serviced apartment.

Business people travelling through cities will sometimes want somewhere to stay that doesn’t feel like a lonely hotel room. The serviced apartment also works for those needing to undertake conference calls and business meetings online or on the phone. With all the amenities needed in order to do your work in comfort, a serviced apartment is a great option for those travelling on business.

 

3 Things Guests Really Expect

3 Things Guests Really Expect From A Serviced Apartment

If you find yourself owning a serviced apartment, we are going to look at some of the things that your guests are looking for.

Everything to be cleaned

It would defeat all reasoning if your apartments are dirty. Cleanliness is one of the biggies. One of the most common expectations you will receive from guests is for the apartment they’re moving into to be cleaned thoroughly.

This calls for the use of professional cleaning companies which caters for steam cleaning the carpet.

Carry out repair work before the guests arrive

Any repair works or maintenance issues with the apartment should be rectified before your new guest moves in. It can be an inconvenience for guests to take time off their apartments to allow room for workmen to visit the apartment to sort out any issues, so it’s best to get them seen to as soon as the previous guest moves out.

Ample space

Guests among many other reasons, pay for space. That is why they will choose to check in a 1, 2 or 3 bedroom apartment. Whether you’re renting an apartment to couples or to families, everyone requires ample space.