When searching for contractor accommodation, you may be wondering what the pros and cons are of serviced apartments vs hotels.
Contractor accommodation takes many forms, from extended-stay hotels to self-catering properties, shared houses and purpose-built units. And while hotels have long been the go-to for business travelers, serviced apartments are a popular cost-effective alternative.
Business accommodation comes with its own considerations and whether it’s a hotel or an apartment, location is key to make sure you’re not subjecting your contractors to long or complicated commutes. You also need to make sure they have all the amenities they need for when they’re off the clock. For employees who are temporarily relocating in order to share their expertise with your business, ensuring they have the best base is essential.
With rising costs a driving factor in business decision making, more travel managers than ever are looking for ways to save. Deloitte research shows that 38% of travel managers are encouraging or mandating lower-cost hotels and giving up some contracted amenities. Could serviced apartments provide the best solution?
In this guide, we’ll explore the cost considerations that distinguish serviced apartments from hotels, along with the key operational factors to consider when booking a property. Armed with this comparison, you’ll be able to choose the best temporary housing for business travelers, tradespeople and contractors working on long-term projects.
Serviced apartments and hotels are designed for different travel needs. Both offer basic amenities like bedding, towels, toiletries, housekeeping, and reception services. But while hotels run the full spectrum of facilities, from simple rooms for a night to luxury stays with gyms, pools, and michelin restaurants, , serviced apartments focus more of the comforts of home.
These fully furnished apartments range in size from studios with kitchenettes to larger, multi-bedroom spaces that can accommodate groups. Serviced apartments are leased out for longer periods by management companies or private owners, while hotels are well equipped for short-term stays.
Serviced apartments are often more budget-friendly for businesses in the long run, due to their pricing models and amenities, but this depends on your business travel needs. Here’s what to consider.
Hotels usually charge by the night, often with dynamic pricing models that fluctuate depending on demand. Nightly rates can soar when there’s a business event in town, or due to seasonal influxes of visitors. This can make budgeting unpredictable when you’re arranging accommodation for a team of long-term visitors.
Serviced apartments, by contrast, tend to offer lower nightly rates overall as they’re booked in weekly or monthly instalments. For example, Savills estimates an average nightly rate of $120 (£90) for a hotel, compared to a monthly rate of $2,300 (£1729) for a comparable serviced apartment, about $76 (£57) a night – a saving of $1,300 over 30 nights.
Apartments, by their nature, are designed for longer stays spanning weeks or months at a time. While there are extended-stay hotels, most traditional business hotels cater for short-term travelers.
Extended stays, whether in a hotel or apartment, typically come with discounted rates. Loyalty is also rewarded with some booking platforms, like Tripeden.com for Business’s Genius rates that offer higher discounts to more frequent customers.
Compare pricing structures carefully and determine if there are incentives given for longer bookings. To better manage costs, work with your accommodation provider to negotiate the best long-stay discounted rate.
If you’re looking for ways to keep business travel costs low, apartments are often a good choice. This is because they provide 30% to 50% more space than the average hotel room, boasting separate living and sleeping areas as well as a fully equipped kitchen. With the freedom to cook, contractors don’t need to spend as much money dining out in restaurants.
Standard business hotel rooms won’t include a full kitchen, though many do include kitchenettes that provide some light meal preparation. And while you can reserve larger hotel rooms with more space, these will come at a price premium, which is something to consider when booking budget-friendly accommodation.
Hotels really shine when it comes to amenities, with business travelers benefiting from things like concierge assistance, valet parking, daily housekeeping, and room service. Depending on the hotel, there might also be 24-hour gyms, spa facilities, and swimming pools to encourage wellness and relaxation. However, businesses will pay for this luxury mark-up.
In most cases, serviced apartments won’t come with the extensive range of amenities that would be provided in a hotel. Housekeeping may be weekly rather than daily, but there should be a dedicated reception desk, and some apartments will offer laundry and food delivery at a higher cost.
When comparing hotels vs apartments for extended business travel, it’s important to consider all the hidden amenity costs that can quickly add up. Laundry, room service, and minibar items may or may not be included depending on the property, so figure these into your cost considerations.
Parking often comes at a daily cost in business hotels. And if you’re booking a hotel in a busy central location, the parking may or may not be onsite. Often, business travelers are directed to public parking garages nearby, and daily parking fees can swiftly add up when staying in a location for several weeks working on a project.
By contrast, apartments usually come with dedicated parking space included in the flat rate. For contractors who need to drive to their worksite each day, this is a valuable perk.
If you’re arranging travel for large groups, you’ll have several options. One is to block-book multiple hotel rooms for your team. You could also look to house shares, reserving serviced apartments with multiple bedrooms and shared living spaces, or looking for multiple self-contained one-bedroom units.
Cost-wise, reserving multiple hotel rooms will typically be more expensive than booking several larger apartments. Equipped with plenty of living space and full kitchens, apartments are ideal for accommodation groups of contractors. They’re also good temporary housing for business travelers who might want to bring family along for long-term projects.
However, privacy is also a consideration. Even tight-knit work teams might want their own quiet space at the end of the day, which individual hotel rooms provide.
For travel bookers and managers, there’s more to consider than amenities when comparing serviced apartments vs hotels. You’ll also want to think about factors such as booking platforms and policy compliance.
Time spent trawling the internet for suitable properties is money wasted. In our research into the pain points of business travel management, we found that business travel bookers ranked having a variety of options (22%) as more important than cost-effectiveness (12%) and reliability (7%) when choosing a travel management tool.
With more comprehensive travel management platforms like Tripeden.com for Business, you’ll be able to source a wider range of accommodation channels, ensuring you’ll have ample properties to choose from. Our portal gives access to over 3 million properties, including not just hotels but also B&Bs and serviced apartments, and you can book for up to 30 people at a time to make sure the whole team is catered for.
Another operational factor to consider is location. Of course, you can find hotels all around the world, but they do tend to be clustered around convenience hubs such as city centers, airports, and business parks. By contrast, serviced accommodation is often located not just in city centers, but also in quieter residential areas.
The right choice will depend on your project’s location. Do you need a central hotel for swift access to corporate offices? Or, do you need an apartment near your construction site? Selecting a convenient location will minimise the time and cost of commuting, reducing overall business travel expenses.
Some industries require greater privacy and guest control, including film production and military or government installations. Hotels are secure, but they can feel less private due to higher guest turnover and daily housekeeping. For contractors in need of confidentiality, or simply a quieter space to unwind after long days at work, this is something to consider.
Serviced apartments may provide more privacy, particularly when they’re positioned in quiet residential areas. They also usually involve fewer interactions with other guests and housekeeping staff. While this is preferable for some business travelers, it can be isolating for others - the right choice will be dependent on industry and project.
Businesses have a duty of care to keep all employees safe, which is just as important for long-term projects as it is for short-term trips. Serviced apartments have private entrances with onsite reception, though this isn’t always open 24 hours. Many include added features like alarm systems.
Hotels come out on top with security and safety, not only providing 24-hour reception but also CCTV surveillance, fire escape routes and strict safeguarding protocols. This gives contractors – and their managers – peace of mind throughout their stay.
Of course, safety when living in a hotel vs apartment will also come down to location, so it’s important to do your due diligence when looking at neighborhoods.
How well hotels and apartments comply with your corporate travel policy depends on its contents. It’s important to create a detailed extended business travel policy that covers the unique needs of long-term contractors to ensure bookings comply with duty of care, cost management, and tax requirements.
Traditional hotels and serviced apartments aren’t the only types of corporate accommodation. When searching for the best temporary housing for business travelers, you’ll want to look at all the options to find something suitable. The best choice will balance cost-effectiveness with comfort.
For a unique experience with a personal touch, bed and breakfasts (B&Bs) are preferred by some business travelers. While guests have their own private ensuite rooms, they also have the chance to interact with local hosts and enjoy a homemade breakfast each morning. For those spending long periods away from their own friends and family, this mix of communal and private living can help combat isolation.
Extended-stay hotels bridge the gap between traditional business hotels and apartments. When comparing extended-stay hotels vs apartments, you’ll see that extended stays come with some of the amenities of a hotel, like fitness centers and business lounges, along with some of the comforts of home, like kitchen facilities.
Self-catering properties are more traditional rentals than serviced accommodation. They can be apartments or houses, fully furnished with kitchens, living rooms, and plenty of living space. However, the difference between these and serviced apartments is that they won’t include things like housekeeping and reception.
That means you can often negotiate a better price, but you may also be locked into a less flexible lease with financial penalties for early cancellation. Be sure to read all terms and conditions carefully to find out whether this option is flexible enough for your contractor project.
There’s no one-size-fits-all solution for every project, so you’ll need to weigh the advantages and disadvantages of serviced apartments if you’re considering this option.
Apart from the potential cost savings, serviced apartments come with greater home comforts for long-term stays. Employees, who may be spending long days onsite, will have adequate living space to relax. Compared to the standard look of hotels, furnishings and artwork are often more unique, and kitchens come fully equipped with everything needed to stick to a healthy eating routine.
There are advantages to business hotels, too, when compared to serviced apartments. When you need a central urban location and 24-7 security, hotels are more likely to fit the profile. With a more luxurious feel, they often come with spas, swimming pools, and gyms to encourage traveler wellbeing, which serviced apartments usually don’t have.
There are pros and cons not only to serviced apartments and hotels, but also to alternative accommodation including B&Bs and corporate lets. So, how can you choose the right option for your traveling crew?
From a purely budget-minded perspective, self-catering and serviced apartments will usually be the cheaper option. Built-in kitchens and laundry facilities encourage self-sufficiency, saving on the cost of eating in restaurants or ordering room service and other hotel services. This allows guests to control their spending while traveling for work, ensuring better compliance with your company travel policy.
Staying for longer periods of time leaves room for negotiating discounts by the week or month, compared to the higher nightly rates charged by standard hotels.
The right choice will ultimately depend on your travel budget, desired location and project scope. It’s important to use a travel management tool that displays all your options for the most accurate comparison. You’ll also want to use expense management tools to track lodging and meals, along with other incidental expenses. All-in-one solutions like Tripeden.com for Business not only search for business travel hotels, but also for serviced apartments, B&Bs, and other forms of accommodation to give you the widest range of choice.
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