The Saudi authorities estimate that in 2003, there were almost 2500 informal furnished apartments buildings containing 54,000 units in the Kingdom alone, most with few, if any, amenities and precious little service.
Similar situations exist in the other Gulf States, where there are estimated to be several hundred more serviced residences. The regional market is characterized by dependence, not on global chains, but on either individual owner-operated serviced apartments, or small local chains without global reach.
Properties are often converted from existing residential apartments buildings and vary widely in their age, condition, building and unit size and configuration, and the extent and quality of furniture, fittings and equipment, front and back of house amenities, and above all, service.
Ironically, it is the very 'home-grown' nature of many privately run apartments that seems to appeal to some guests, rather in the same way that traditional family-run bed and breakfast guest houses appeal in Europe.
There are 20 international or regional hotel chains currently operating some 34 serviced apartment or serviced villa operations in the GCC, which obviously, represent just a fraction of the total supply.
Many more serviced residences are now under construction across the Gulf,with Dubai alone known to be adding more than 12,000 new apartments within almost 50 new dedicated serviced apartment properties or hotels containing them, by 2010 (and those are only the ones that have been publicised).
DUBAI Bavaria Executive Suites, a luxury property of 2,100 suites, will open in late 2008 in the heart of Dubai's business district. The hotel will be operated by Bavaria Hotels International. Located within the Dubai Technology and Media Free Zone, two 40-floor towers will make up the largest suite hotel in the Middle East and Europe.
New dedicated operators are also expected. In the next five to 10 years, specialist extended stay or all suites brands, including the InterContinental Hotels Group's Staybridge Suites, Fraser Serviced Residences from Singapore, Oakwood Worldwide from the US and Accor's Suite Hotel, are expected to secure a widespread presence in the region.
According to the US definitions, there are three main varieties of serviced apartment accommodation now available in the market: Extended stay hotels, called serviced apartments in the Gulf and Australia, serviced residences in the Far East and apart hotels in Europe, offer a fully equipped kitchen in each guest room, suite or apartment, and discounts for extended stays, which are defined as five days or above.
Corporate or temporary housing comprises fully furnished and equipped apartments designed to suit company employees, rented for a minimum stay of 30 days.
The US extended stay market is the world's best developed,with more than 250,000 apartment units in 2005 and very healthy growth rates, based on an average of 76% occupancy and an average stay of 15 days, or 33 days in the economy sector.
There are some 28 extended stay hotel chains and 16 all-suite hotel chains in North America, with more than seven properties each, according to www.bizstay.com. Their properties are built to formula for the upscale, mid-range or economy markets, with studio, one- or two-bedroom apartments, as well as convenience stores and self-service laundrettes.
The all-suites hotels offer more conventional hotel-style facilities and services, such as restaurants, room service and daily housekeeping, while the extended stay properties have no restaurants, but offer more features that will appeal to longer stay, self-catering guests, such as full kitchens, more homely room furnishing, free video lending and help with grocery shopping.
Look out for the various types of extended stay hotels in dubai — they could soon be coming to a dynamic, fast-growing city near you.
