The Radisson Hotel Group has announced plans to more than double its serviced apartments portfolio within the next five years across EMEA (Europe, the Middle East and Africa).
Serviced apartments currently represent around 10% of the group’s EMEA portfolio with 45 properties and more than 5 400 units in operation and under development.
The Radisson Hotel Group operates its serviced apartments as stand-alone or a mixed-use development coupled with a traditional hotel operation. Serviced apartments will be developed as a brand extension of the existing Radisson Hotel Group’s brand portfolio to cater to the different segments from midscale to luxury.
Elie Younes, Executive Vice President and Chief Development Officer of the Radisson Hotel Group says that for many years, the brand has explored the strong demand for serviced apartments and extended stay products by recognizing it as an attractive risk-adjusted investment proposition that has considerable growth potential. “Given its relevance to the current economic climate, this value proposition has recently been further defined in our portfolio, offering a holistic concept with more opportunities for our investors and more possibilities for our guests. We commit to stay relevant to all our stakeholders.”
“The business model of serviced apartments has demonstrated resilience overtime and is less affected by market volatility as we can target both short and long-term guests. We believe there is an opportunity to roll out our Radisson Serviced Apartments brand across all key cities within Africa” comments Ramsay Rankoussi, Vice President, Development, Africa and Turkey.
“The offering will not only complement our existing portfolio but would certainly attract a new profile of investors interested in entering the industry with this hybrid concept between residential and hospitality. The addition of this new product will further accelerate our ambitions to reach 150 hotels in operation and under development by 2025.”
Radisson Hotel Group’s expansion plan aims to double the portfolio in operation by 2025, recognizing the attractive model of either combining both hotel and serviced apartments in one development or as a standalone operation, catering to customers looking for a residential atmosphere when travelling for leisure or on business for a short or longer period of stay.
This proposition features an attractive operational and commercial model with value engineered construction parameters, featuring a new look and design. It offers studios as well as one-bedroom and two-bedroom apartments with fully equipped kitchen, en-suite bathroom, 24-hour reception, housekeeping services, engaging social and communal spaces, food & drink options and a range of leisure facilities tailored to its location.
Building on the significant growth to date in much of the EMEA region, Radisson Hotel Group plans to open soon new serviced apartments units in Paris, Amsterdam, Dubai, Istanbul, Larnaca, Cortina, Cairo and Riyadh, with further openings planned in Germany.