Half way between an Airbnb and hotel, meet the boutique apart-hotel

Brands using the concept claim to have found a sweet spot between Airbnb and traditional hotels

National /
Jul.July 28, 2018 05:44 PM

(Credit: Tydence Davis)

A new cadre of hoteliers are championing the concept of apart-hotels, properties set up for longer-term stays, and they credit Airbnb with helping them see the light.

Because of the short-term rental giant, the idea “that there could be some advantages to a residence versus a room,” has proliferated and sparked inspiration in the minds of people like Larry Korman, president of apart-hotel brand AKA, according to Bloomberg.

“Airbnb is the best thing that could have happened to us,” Eric Jafari told Bloomberg. Jafari runs a UK-based apart-hotel brand Locke, which was founded 16 months ago. Jafari estimates it will be worth about $2.5 billion by 2023 and Brookfield Capital acquired Locke in February for $565 million, despite the brand only operating two properties. Locke currently has 900 rooms on the boards.

For Steve Kent, the founder of Goldman Sachs‘ hospitality investment group, the apart-hotel is no passing trend. “Major hotel companies will be pivoting towards this opportunity,” he predicted to Bloomberg.

The concept has many of the standard amenities guests would expect in a hotel, plus kitchens, private living spaces and triple the square footage. According to apart-hotel brands, their properties are like Airbnb but without the uncertainty.

“The reality of an Airbnb rarely reflects the images [of the listings],” Jafari told Bloomberg. “There’s no gym. The blackout blinds suck. You show up at 10 a.m. and can’t check in until 3, but there’s nowhere to leave your luggage.”

Some apart-hotel brands say the vast majority of their guests come through B2B bookings for corporate clients looking to set up project-based stays of a couple weeks or months for employees. Korman says many of AKA’s clients are in the entertainment business. [Bloomberg]


Related Articles

arrow_forward_ios
From left: Mayor Bill de Blasio, 54 West 39th Street, 62 Grand Street, and 208 West 30th Street (Credit: Google Maps)
The Airbnb crackdown continues: City targets three more buildings
The Airbnb crackdown continues: City targets three more buildings
Mayor Bill de Blasio and Stanley “Skip” Karol, an Airbnb host (Credit: Getty Images and Youtube)
Airbnb host narrowly clears hurdle in First Amendment claim against city
Airbnb host narrowly clears hurdle in First Amendment claim against city
A West Village Airbnb listing (Credit: Airbnb)
Airbnb Luxe launched without listings in one of their biggest potential markets — why?
Airbnb Luxe launched without listings in one of their biggest potential markets — why?
Slate Property Group's Martin Nussbaum and a rendering of the project
Hakimian, Certes land $59M loan for East Harlem multifamily project
Hakimian, Certes land $59M loan for East Harlem multifamily project
Watch TRD Brand Studio’s first-ever webinar on the new office normal
Optimizing the office: TRD Brand Studio webinar on the new workplace normal
Optimizing the office: TRD Brand Studio webinar on the new workplace normal
The reopening of NYC has created a surge of demand for apartments. (Getty)
Reopening sparks signs of a real estate rush
Reopening sparks signs of a real estate rush
The Real Deal's Hiten Samtani and Urban Green Council CEO John Mandyck
Watch: Urban Green Council’s John Mandyck on tackling climate change in NY
Watch: Urban Green Council’s John Mandyck on tackling climate change in NY
Hamptons businesses desperate for workers
Hamptons businesses desperate for workers
Hamptons businesses desperate for workers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...