Luxury serviced residence: A profitable hospitality niche

Following the success of Oakwood Premier Ayala Center in the Philippines as a new and profitable niche in the hospitality industry, more Oakwood Premiere luxury serviced residences will rise in major Asian cities in the next three years.

Established in 1998, Oakwood Premier Ayala Center made a strong impact on business travelers in the Asian market as one of the first serviced residence properties to also have five-star appointments and hotel services. Previous to this unique establishment at the center of the Makati business District, serviced apartments were usually considered as budget accommodations. Upgrading them with luxurious furnishings and first-class services appealed strongly to executives on business, a highly-coveted segment in the travel industry, according to Robert Philips, director of sales and marketing of Oakwood Asia Pacific.

Four more Oakwood Premieres in Asia will be completed by 2007, he notes. These will be located in Bangkok, Thailand; Bangalore, India; Jakarta, Indonesia; and Tokyo, Japan. Aside from Manila’s 306 suites, a recently built property in Seoul currently offers 270 luxury residences. The new establishments will put 730 more Oakwood Premier units onstream in Asia.

Manila was among the early pioneers in the top-end serviced residences market when Ayala Land Inc. along with Rodamco Asia put up the 2306 Oakwood Premier Ayala Center. Conferred a Kalakbay Award from the Department of Tourism in 2003, it has consistently been among the best performing properties in the Makati financial district and has been breaking its own occupancy records.

Philips observes that the acceptance of luxury serviced residences was prompted by a reduction of permanent expatriates in Asia by many multinational companies following the economic crisis of the late 90s. Rather than expatriate executives and their families, these companies chose to send consultants abroad on short-term assignments ranging from one to six months.

Because of their unique situation, these travelers felt confined in a hotel room, but did not find it feasible to move into a house or apartment since these are usually let out on a yearly basis. Luxury serviced residences which afforded them the comforts of home and benefits of a hotel filled their special needs. At Oakwood Premier Ayala Center, they also enjoyed the convenience of renting for as long as they wanted – from one night up to one year.

Philips observes: "the productivity of business travelers is of utmost importance… Companies want them settled and productive as soon as possible after arrival."

The luxury residences with a work and seating area as well as multiple phone lines and broadband internet connection allow them to work in their suites and to hold small meetings there. Should they be traveling with their families, they have the option to choose from among a range of units – from studios all the way up to three-bedroom suites – one that will suit their needs. Comments Al Legaspi, resident manager of Oakwood Premier Ayala Center, the luxury residences afford them luxury as well as great values.

All Oakwood Premieres in Asia enjoy a prime, city-center location adjacent to major office buildings and world-class dining and shopping. They also have large floor plans, full gourmet kitchen, designer furniture, luxury linens, washer/dryer and the latest home electronics. In addition, they share best in class facilities including onsite health club/gym, swimming, business center, meeting space and restaurant.

Business travelers in Manila also have the bonus of making use of Oakwood Premier Ayala Center’s 21 fully furnished serviced offices, ranging from 11 to 51 sqm. The units are available for lease on a weekly, monthly or yearly basis. An executive needs merely to set up his laptop in these well-appointed units with multiple phone lines and internet access so he can begin working.

More Oakwood Premieres will be built in other Asian locales in the coming years, says Philips.