Growing investments in serviced residence market

THERE is a new player onboard the serviced residence scene - Pan Pacific Serviced Suites.

Launched by Pan Pacific Hospitality, this marks a milestone for Pan Pacific Hotels and Resorts as it now has an extended stay product that caters to the demands of overseas professionals. The serviced residence in Singapore opens this month and stands apart form the competition by offering Personal Assistants to provide residents with local connections to the city.

“Globalisation has accelerated business expansion in Asia, leading to more business travel and overseas postings, which in turn has spurred the demand for luxury serviced accommodation.

“More multinational companies are opting for serviced accommodation over hotels for their overseas staff that require extended stay. They are looking for a more cost efficient accommodation solution and one that provides a comfortable and home-like environment to ensure that their employees are well-looked after, especially in a new city,” said Kevin Crowley, SVP sales and marketing, Pan Pacific Hotels and Resorts.

Pan Pacific is confident of its offerings in the serviced residence sector. Although the Pan Pacific Serviced Suites may be new to the market, Pan Pacific has been in hospitality for more than 33 years. Through extending its brand portfolio and accommodation offering,Pan Pacific is in a stronger position to capture a broader base of short- and extended-stay travellers.

“We undertook research to find out the accommodation needs of business travellers and decision makers including HR and procurement personnel. One of our key learning was that moving to an overseas posting can lead to a certain level of stress and a loss of empowerment as the individual copes with losing their usual business, social and support networks when they move to a new city.“Pan Pacific Serviced Suites is the only luxury serviced suites that has round the clock Personal Assistants who can help our residents be connected to the city instantly and easily. They can help recreate business, social and support networks and provide guidance to enjoying the city.”

Pan Pacific is looking to finalise a property deal in Bangkok, and is targeting gateway cities in high-growth markets and key business hubs such as China, Vietnam and Japan.

Ascott, a long-running player in the serviced residence market, is continuing its expansion into Europe, Asia Pacific and the Gulf. Chong Kee Hiong, deputy CEO, Finance and Investment, The Ascott Group, said that the company is expanding in countries with high foreign direct investment and GDP growth. Thus the CIS countries and Russia are destinations that Ascott is also looking at.Ascott, as an established serviced residence group, has brand equity said Chong, and impressive rate of expansion spearheaded by Citadines and Somerset brands.

“For the last two years our return one quity (ROE) hit double digits and was 14 percent in 2006 and 15.4 percent in 2007.All together our units hit the 20,000 target in 2007, we plan to have 25, 000 units in 2010."