The operator remains upbeat despite challenges the current global economy places on the serviced apartment market.
HONG KONG – Shama Management Ltd., which operates four serviced apartments in Hong Kong, recorded satisfactory business performance last year. It is reported that the occupancy rate has reached 89.8% on average, creating a 3% increase compared to that of 2013. The premier serviced apartment operator is optimistic towards business in Hong Kong with the significant growth in number of tenants from China and Japan.
In 2014, corporate clients continue to downgrade their expat packages such as tightening housing budget, which leads to a more cautious selection of overseas accommodation while relocating staff on assignments of shorter term. A significant decrease in length of stay was recorded last year, especially the period of three to six months. Shama actually benefits from the change; though a year-on-year 3% decrease in the sector is recorded. A rise of about 7% was recorded for stays of one to three months, which has balanced out the decrease on longer stay, resulting in an overall increase of occupancy and revenue.
Despite new players joining the market as serviced apartment providers last year, the demand for serviced residences remains strong from countries like China and Japan. It is observed that 39% more mainland executives from the financial sector checked in at Shama properties in Hong Kong, compared to 2013. Clients from Japan brought 7% more check-in to Shama serviced apartments. This complies with Invest Hong Kong’s report that Japan is among the top countries that established companies in Hong Kong last year.
Shama’s positioning of mid-end premier properties provides a resilient choice for corporates who used to go for high-end residences. Shama currently operates four serviced apartments in prime locations of Hong Kong, namely Shama Central, Shama Hollywood, Shama Fortress Hill and Shama Tsim Sha Tsui; and all offer units from HK$24,300 to HK$77,800 a month, with sizes ranging from 382 to 1,250 square feet. The apartment choices include studio, one-bedroom unit and two-bedroom unit – ideal for singles and couples alike.
“We are looking to 2015 with optimism although the global economy remains uncertain. We expect a mild increase of 3% to 5% in monthly rental in 2015. With what Shama brand promises and the relationship with multinational companies we have built up, Shama remains the preferred choice for expatriate housing for discerning travellers. Shama tenants can enjoy regular social and networking activities which help them to make the most of the city and live like locals,” said Ms. Marilyn Fu, Director of Sales and Marketing, ONYX Hospitality Group (North Asia). To provide a wider choice of serviced apartments, Shama created the new Shama Lite brand that offers value-oriented accommodation to further diversify for the demanding market.
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