Hotels happy with long-term leases

HOTEL ROOMS BEING converted into serviced apartments or leased on a monthly basis to long-staying guests has now become a trend in the hospitality industry.

The concept was introduced about seven years ago by hotel owners and operators looking to broaden their customer base and diversify their source of income.

It started to make its mark during the slow tourism years between 2000 and 2003, when hotel operators were under pressure to fill rooms. Leasing rooms on long-stay packages, they found, raised occupancy rates and generated a steady recurrent income.

The trend was further helped by China's accession to the World Trade Organisation in 2001, and the nation's booming economy. More business travellers started coming to Hong Kong, creating a demand for short-term leases of three to six months, said Simon Lo Wing-fai, director of research and consultancy with Colliers International.

He said serviced apartments filled the gap between hotel rooms and standard apartments, offering flexible leasing terms to tenants. The Harbour Plaza Resort City in Tin Shui Wai has 1,102 rooms, about half of which are leased as serviced suites to local people and expatriates.

There are also long-stay rooms for lease at Charterhouse Hotel in Wan Chai, Harbour Plaza Hotel in North Point, Harbour Plaza Metropolis Hotel in Hunghom and Horizon Suite Hotel in Ma On Shan.

These hotels offer housekeeping services, flexible leasing terms similar to serviced apartments and rental packages that are usually all-inclusive.