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The serviced apartment market in Asia is ready for a franchised model, according to Quest chairman Paul Constantinou. Speaking at the recent Serviced Apartments Asia Conference in Singapore, Mr Constantinou joined representatives from the industry in highlighting the resilience of the sector through recent threats such as the SARS virus and global economic crisis.
Quest is the biggest player in the Australasian serviced apartment industry, with properties in Australia, New Zealand and Fiji. The company does not have properties in Asia, but is known and respected in the region.
While there are a number of companies offering serviced apartments in the Asian region, none operate on a franchised system.
“It’s an opportunity for Quest to look at Asia. We believe that the franchise model would be quite successful throughout Asia,” Mr Constantinou said.
With the rise of wealth in many Asian countries, Mr Constantinou said there were a growing number of people who wanted to go into the serviced apartment business for themselves.
“There has been an emergence of financially capable people who are risk averse but want to get into business and a franchise would be a great opportunity for them,” he said. “The benefits of franchising are that the person who owns the business runs the business and there is certainty of income for the developer. Developers want the surety of income over extended periods of time.”
Mr Constantinou said the serviced apartment industry was set for growth in the Asian market, with customers already identifying the benefits of accommodation catering to longer-stay travellers and the business travel market.
“If you’re in Singapore for business for an extended period of time, you’d probably prefer to stay in an apartment – as long as you have a place to work, you don’t need a palace,” he said.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
