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

TRD 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

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

30 West 31st Street and 52 West 36th Street (Credit: Google Maps)

South Korean firm snaps up two Midtown hotels for $137M

SoftBank taps former Sprint CEO to fix WeWork, this borough could house Trump’s presidential library: Daily Digest

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

Brookfield Property Group CEO Brian Kingston and 652 11th Avenue (Credit: Google Maps)

Brookfield drops $83M on Hell’s Kitchen hotel

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties

Fisher Brothers' Winston Fisher and 55 East 52nd Street (Credit: Getty Images)

Airbnb investor takes more pricey office space on Park Avenue

Embattled Prodigy Network CEO Rodrigo Niño to step down

arrow_forward_ios