Demand for top-tier service apartments and service suites in quality hotels will continue to grow even though the market for this type of accommodation has been undergoing major changes. Stephen Chu, deputy general manager of Harbour Plaza Hotel Management, said the market had experienced a shift in terms of location and tenants mix. Mr Chu said service apartments had traditionally been regarded as furnished accommodation with a range of amenities and services provided by landlords. While most such apartments are in Admiralty, Wan Chai and Mid-Levels, more units are becoming available in other dictricts. Mr Chu said some hotels had also been designating rooms for those wanting flex ible accommodation. For example, Harbour Plaza Hotel Management, a unit of Cheung Kong (Holdings) and Hutchison Whampoa, manages Harbour Plaza Hong Kong in Hunghom, which has 101 suites for long-staying customers. All suites are fully furnished and offer essential services. More apartments will be offered once Harbour Plaza Hotel Management completes two more hotel proper ties in North Point and Tin Shui Wai. Some rooms in these two hotels will be offered as service apartments for long-staying guests. Harbour Plaza Hong Kong is offering its units at rentals ranging from $40,000 to $70,000 a month. Rooms range in size from 860 to 1,120 square feet. Whether they are located in hotels or in purpose-built buildings, there are different types of service apartments. Chesterton Petty research director Watson Chan said these could be categorised according to location and rent. Accommodation at The Atrium (Swire Properties) and Parkside in Pacific Place is at the luxury end. Accommodation in Convention Plaza Apartments in Wan Chai, owned by individual landlords, is the traditional type of service apartments. Mr Chan said the second tier service units were mainly located in North Point, Sha Tin and Yuen Long. Analysts said that considering their prime location and limited supply, there would be a good demand for top-tier units. Mr Chu said demand for quality hotel suites would be sustainable in view of the types of customers like expatriates as well as locals who sought accommodation for which leasing terms are flexible. Leasing terms and the conveniences offered are among the advantages of service accommodation, Mr Chu said. Mr Chu said the service accommodation sector would continue to attract tenants. Tenants enjoyed the convenience of living in service units as they did not need to pay deposits, electricity or water bills. Rentals included all utility charges, he said. Mr Chu said Harbour Plaza Hong Kong service suites were fully occupied, reflecting keen interest from tenants, mainly expatriates. He forecast good prospects for the sector. The group would continue to expand its services, considering the future potential of the market, Mr Chu said. He cited North America as an example. About 20 per cent of properties in North America are service suites.