In recent years, serviced accommodation has become an increasingly popular choice for both short-term and long-term stays. The convenience of this type of accommodation, and the flexibility of booking, is a big draw for many clients. However, many global mobility teams do not realise that serviced accommodation is not the only instant housing solution. As part of our Icon Stay services, we offer a range of solutions suitable for a wide range of assignments, each with their benefits and drawbacks.

Launching a series of articles dedicated to instant housing solutions, in this article we explore some of the pros and cons of serviced accommodation to help you determine if it’s the right option for you.

What is serviced accommodation?

Serviced accommodation – also referred to as short-term serviced accommodation (STSA) or serviced apartments – is a type of accommodation that is usually booked on behalf of a relocating assignee in advance of their journey. It comes fully furnished and typically includes utilities, housekeeping services and kitchen facilities. It is suitable for both long and short stays.

Because serviced accommodation is pre-arranged, assignees are able to check into their accommodation as soon as they arrive in their host location, making it a very convenient option.

Benefits of serviced accommodation

Fully furnished and ready to use

One of the biggest advantages of serviced accommodation is that it comes fully furnished with everything an assignee would need for a comfortable stay. From furniture and appliances to kitchen essentials and entertainment systems, these properties are designed for convenience. This means that assignees can settle into the accommodation almost immediately and focus on their new role.

Kitchen facilities

The ability for assignees to prepare their own meals is a big benefit of serviced accommodation over, in particular, hotels. For many assignees, having access to kitchen facilities adds a sense of homeliness that is missing from a hotel room. It also means that dining expenses are reduced.

Flexible stay options

Serviced accommodation offers accommodation without being tied into a contract. This can be especially beneficial for longer stays, and may allow for the possibility of the assignee returning home early. It also means that if the assignee does not find the accommodation to their liking, there is the possibility of changing to another accommodation.

Discounts for longer stays

Serviced apartments can be cheaper than hotels (although not always). This is especially true for longer stays (particularly more than 6 months), with providers often offering discounted rates for long-term bookings.

Housekeeping and additional services

Many serviced accommodations offer housekeeping services, laundry facilities, and even concierge support. This provides a balance between home-like living and the convenience of hotel amenities.

Drawbacks of serviced accommodation

High cost

Although serviced accommodation can be cheaper than hotels, it is typically considerably more expensive than rental properties. Other instant housing options, including corporate housing, can save clients thousands in contrast to serviced accommodation – even if the property is not always occupied.

For short visits (from a few days up to 1-2 weeks), you should consider hotel options as well as serviced accommodation to secure the most cost-effective suitable option.

Must be sourced for each stay

You can’t ‘hold on’ to a serviced apartment that works best for you or your assignees. Serviced accommodation must be sourced for every stay, with availability and cost potentially varying significantly for each visit. Corporate housing, meanwhile, provides a convenient option for clients to find an ideal property (or properties) and keep it as instant accommodation for assignees.

Extension restrictions

There is usually no guarantee with serviced apartments that you will be able to extend the booking. If, for example, an assignee selects a long-term rental property which cannot be moved into until after their serviced accommodation ends, they may be required to move into a different serviced apartment in the mean-time – which could add additional stress for the assignee.

Cancellation policies

Some serviced apartments have stricter booking and cancellation policies – especially compared to hotels. Guests may be required to book for a minimum number of nights at some properties. For extended stays, some properties require upfront payment which make last-minute changes more challenging. While serviced accommodation can offer flexibility, it is not always the case.

Conclusion

Serviced accommodation offers an excellent option for instant housing, especially for extended stays and for those who appreciate extra space and home comforts. However, it’s important to weigh the pros and cons based on business needs. If cost efficiency is important, corporate housing could provide a more effective option.

If you would like to find out more about our Icon Stay services and discuss which options are right for you, we would be delighted to assist you. Please contact us to find out more.