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?
Mack Real Estate CEO Richard Mack and one of his new hotels at 51 Nassau Street. (Getty, ING)
Mack Real Estate takes over 7 distressed Manhattan hotels
Mack Real Estate takes over 7 distressed Manhattan hotels
1440 Broadway and CIM Group’s Shaul Kuba (Google Maps, Getty)
CIM closes on $400M refi for 1440 Broadway
CIM closes on $400M refi for 1440 Broadway
Theaters in some cities are opening with restrictions. (Getty, Photo Illustration by Alison Bushor for The Real Deal)
Coming attraction: Movie theaters reopen in New York, San Fran
Coming attraction: Movie theaters reopen in New York, San Fran
Innovo Property Group's Andrew Chung with 23-30 Borden Avenue in Long Island City (Google Maps)
Innovo lands $155M construction loan for LIC warehouse
Innovo lands $155M construction loan for LIC warehouse
Restaurants and bars accounted for a majority of the gains in February (iStock)
Leisure, hospitality big winners in February job gains
Leisure, hospitality big winners in February job gains
arrow_forward_ios

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

Loading...