An old adage goes, “Home away from home”. While many of us may not really know in which context that fits, this is a concept that is being heavily used by realty companies. If you are wondering what, welcome to a service apartment. This is a relatively new concept that refers to a fully furnished apartment with basic amenities and home like comfort. Normally a fully equipped kitchen is also part of this apartment. Essentially this is a combination of hotel and a home. Buoyed by the booming IT and ITeS sectors and a growing number of expatriate professionals there is a growing demand for service apartments in India. 

Explains Balakrishna Hegde, president, KOAPA, “The concept of serviced apartments started about 5 to 6 years back. The reasons for such a trend emerging are manifold. Firstly due to the executives/consultants visiting Bangalore on medium-term stay and secondly due to the increasing room rentals in hotels. The trend continued because Bangalore grew rapidly in software and BPO business. Serviced apartments have helped to control costs of business houses. Also to be noted is that it is not only promoters who have set up serviced apartments but others also who have built the same on their own ancestral stand-alone sites. However, as promoters are on the lookout for properties for development on a continuous basis, they found it easier to quickly match the emerging demand in the market. It is also very important to note that it would have been extremely difficult to cater to the demand of room nights in Bangalore if not for the emergence of serviced apartments.“Visitors for medical tourism are slated to be another big user segment for service apartments.”

Ideal solution
Arguably what tilts the scales in favour of service apartments as compared to hotels is that cost wise the rentals are lower - almost upto 25 percent. They also offer greater space and flexibility and are as easy to book as hotels. As such they offer an ideal solution to business people travelling or living abroad. Normally while they do not have restaurants attached, many service apartments offer food and another advantage is that they are located in central regions of the city and are accessible to several restaurants. Furthermore, as they have fully fitted kitchens guests can actually cook their own food. Some serviced apartments even have gymnasiums and laundry services. These apartments are also much more practical for business travellers as they work out to be more cost-effective and offer greater flexibility and freedom. They are also preferable to private property rentals because they are more practical for those staying in a new location for a relatively short amount of time.

An architect by profession who used his professional knowledge and experience in designing this project, R Kashinath, Managing Partner, Krishna Cedar says, “All the rooms are air-conditioned with broadband internet connection and a fully equipped kitchen. All the flats have fully furnished living cum dining rooms with sofas, refrigerator, television etc. We have a coffee shop in the terrace and daily complimentary breakfast where both continental and Indian dishes are provided. We have a health club with fitness equipment and a jacuzzi. Also our terrace has a roof garden and a small party hall. We also serve food from the nearby restaurants.

Our service apartment is in a quiet residential locality but very close to many super markets, hospitals, parks, shopping complexes, temples, schools and also office complexes. We also provide 24 hours airport pickup and drop and our travel desk will help in making travel arrangements for local and outside tours and sightseeing at very competitive rates. We also have a very efficient doctor on call and have in house laundry and house keeping facility.”

Homestead is Bangalore’s first professionally managed serviced residences facility. Fully furnished and equipped, these serviced residences are in prime locations across Bangalore and are well connected to the city’s major business centres. Homestead offers a variety of accommodation options ranging from studio to 1-, 2-, 3-bedroom and penthouse apartments. Apartments at Homestead are available on a short, medium and long-term lease, and come with facilities like fully-equipped kitchens, air-conditioning, crockery and cutlery, broadband internet access, electronic safe lockers and a fully equipped gym.

Matching prices
A billiard’s room and a swimming pool are part of some properties. Tariffs range from Rs 3,500 per day for a studio apartment to Rs 6,000 for a 4-bedroom penthouse. Taxes of 12.5 percent are extra. Spread across 3 floors, Homestead from the Brigade group has 22 luxury apartments, 2 separate party areas (at ground and rooftop levels). “The response has been very good and awareness has to build up. People who once experience stay in a service apartment always  come back and will never prefer hotels thereafter,” explains Kashinath.
The tariff ranges from Rs 1,000 per day plus taxes to Rs 2,500 per day for a single bedroom flat, and Rs 2,000 per day plus taxes to Rs 4,500 per day for a double bed room flat at Krishna Cedar. However bulk bookings do entail corporate discounts so make sure you check on the same. 

The outlook for service apartments is upbeat. Says Karun Varma, Local Director, Corporate Solutions – Jones Lang LaSalle Meghraj, “The service apartment business is being revolutionised with more organised players entering the market fuelled by scarcity of quality hotel space at affordable prices. In addition, the increase in migratory working population is compelling companies to house them in service apartments as the duration of stay typically is between 6 to 9 months which makes it unviable to stay in hotels. There are close to around 25 service apartments in Bangalore today and is expected to hit 35 by the 3rd quarter 2008.

The market has seen approximately 25 to 30 percent increase in the last two years. Interestingly, studios in service apartment blocks are getting increasingly popular and very much in demand for short-term leases of 6 - 9 months.” Reportedly Singapore-based serviced apartment major Ascott too is planning to expand its footprint in south India (particularly in Chennai, Hyderabad and Bangalore) by adding at least 1,000 units by 2010.

Useful web links
http://www.chalethospitality.com
http://www.krishnacedar.in/
http://www.homesteadbangalore.com/
http://www.tranzell.com/
http://www.transitliving.com