A personal note. This is being written in a serviced apartment rather than a hotel. The writer much prefers that situation. It comes as no surprise that serviced apartments in China, especially internationally branded ones in gateway cities Beijing and Shanghai, are becoming well established. Serviced residences operated by overseas operators are also emerging in major cities such as Dalian, Tianjin, Guangzhou and Shenzhen.

Importantly, the way they are used is changing. Andreas Flaig, Executive Vice President of Jones Lang LaSalle Hotels in China said, ‘Serviced apartments in China traditionally catered to expatriate residents seeking long-term leases, however, changing market dynamics and an increase in demand for short-term accommodation are nudging them closer to a hotel product.’

He expects serviced apartment development to be reflected in other major cities throughout the country.

Hans Galland, Vice President, Jones Lang LaSalle Hotels in Shanghai said, ‘Serviced apartments offer owners and operators the flexibility to meet an evolving demand profile. With their ability to also cater to short-stay guests, branded serviced apartments are able to leverage their brand and distribution in times of high transient demand.’

Which means, probably, that serviced apartments are becoming more flexible as to length of stay. This is also true in other countries.

Increased demand, better quality supply and an increasingly transparent property market are driving the development of serviced apartments in China. Serviced apartment transactions in 2005 and 2006 demonstrated that there is an active and liquid market for serviced apartments in China’s major cities. International investors, particularly US opportunity funds, and experienced owner-operators make up the bulk of the buyers.

It is an interesting development and may mean, in the future, that the distinction between hotel rooms and serviced apartments blurs so as to have little relevance.

Source: 4Hoteliers

Ascott has a simple target: to achieve 10,000 serviced residence units in China by 2010. To this end it has now acquired two properties in Shanghai and Xi’an.

Ascott will invest up to a total of $44.6 million in the two developments which will be operated under the Ascott Citadines brand. This will bring the Ascott China portfolio to about 4,000 serviced units.

One of the investments is in Shanghai: Ying Biao Garden Apartment, located in the city’s Pudong New District. It has one block of eight-storey serviced residences and seven blocks of four-storey semi-detached houses. The property will be branded as Citadines Shanghai Biyun and is targeted to re-open in the first half of 2008 with 182 units after refurbishment.

In Xi’an, Ascott has acquired an effective 75% stake in a building located at Beilin District. The building will be developed into a 162-unit Citadines Xi’an Central. The property is targeted to be opened in the second half of 2007.

Mr Cameron Ong, Ascott’s Managing Director and CEO said: ‘Despite keen competition in China’s hospitality market, Ascott remains the largest leading international serviced residence company in China.’

Ascott’s current portfolio in China stands at 20 properties in Beijing, Dalian, Guangzhou, Shanghai, Suzhou, Tianjin, Xi’an and Hong Kong.
Source: Ascott

Kempinski has signed an agreement with Shanghai An Shun Real Estate to manage Kempinski Residences Hongqiao, its third property in China’s largest city. These should open later this year.

They are near to Hongqiao Airport, Shanghai’s domestic airport, and convenient to Pudong International Airport. Set in grounds covering 11,700 m2, there are a total of 212 luxurious residences ranging in size from one to three bedrooms, plus a very limited number of four and six bedroom residences, which will be available for long term rental.

The design is by Shanghai East Architecture Designing with interior design by DiLeonardo International.

Kempinski’s Senior Vice President China, René Schmitt, is delighted with this possibility to strengthen Kempinski’s presence in Shanghai, ‘With the city’s premier private residences at Forty One Hengshan Road, in the diplomatic district, the recent signature of Kempinski Hotel Shanghai in the Puxi district and now the Kempinski Residences Hongqiao, Kempinski is going from strength to strength in Shanghai and, indeed, in China.’
Source: Kempinski

Kempinski Hotels has signed an agreement with Shanghai An Shun Real Estate Development company to manage Kempinski Residences Hongqiao, scheduled to open late 2007.

The property, which will have 212 serviced apartments, is in Hongqiao business district, near Hongqiao Airport.

The latest signing brings the number of properties in Kempinski’s network in Shanghai to three. The group already manages 41 Hengshan Road Serviced Apartments and recently announced the addition of Kempinski Hotel Shanghai to open end 2009. The 500-room hotel will be located in a 180,000m2 complex which includes serviced apartments, office, and retail space.
Source: TTG Travel Hub

Fraser Serviced Residences has opened the Fraser Corporate Residences, Futian. This is right in heart of Futian’s central business district in Shenzhen Province. There are 35-storeys designed specifically for the extended stay market — business executives and their families. A quick squiz at the Fraser Futian in the images section shows the standards of design and finish are very high indeed. The sort of place you always would have liked to have owned had you but a few spare million.

The property is owned by Shenzhen Qinian Industry & Development Co Ltd, a subsidiary of the Tianhong Group — one of the largest property developers in Beijing with considerable investments in Shenzhen.
Source: HVS International

Element is the name of Starwood Hotels & Resorts Worldwide new product. Think upmarket serviced apartments crossed with the hotel concept. A prototype is being designed specifically for travelers in the area.

Starwood’s Chief Executive Officer Steven J. Heyer said, ‘We know that Starwood’s guests are hungry for a new kind of extended-stay experience and Element fills this white space in our portfolio perfectly. This is a new approach that will offer guests a brand experience, not just a hotel.’

Element will incorporate, amongst many other unique features, a courtyard and patio where guests are invited to socialize and relax by an outdoor fire pit and barbeque. And the suites will have modular furniture designed to encourage multi-tasking and productivity, to swiveling flat-screen televisions.

Starwood has partnered with leading residential architect, Costas Kondylis, (a plan of his is seen in the illustration) and interior design firm AvroKO to provide unusual features for serviced apartments: large kitchens with stainless steel appliances, custom-designed closets, in-room offices and gourmet pantries.

This is the preliminary announcement. Starwood anticipates 500 such establishments worldwide.
Source: Travel Mole

In Georgia, Atlanta Portman Holdings announced the formation of a joint-venture to develop Jian Ye Li, a 458,000 square-foot mixed-use, luxury project comprised of high-end residential, serviced apartments, retail and parking in a historically protected neighborhood in the Xuhui District of Shanghai at a cost of $105 million, with an opening expected in the first quarter of 2009. In addition, the company is in the early phases of a number of other projects in China.

Portman Holdings has developed some of the world’s best known real estate assets, including Embarcadero Center in San Francisco, Marina Square in Singapore, the New York Marriott Marquis in Times Square, the Westin Bonaventure in Los Angeles, Peachtree Center in Atlanta, Shanghai Centre in China which is on Nanjing Xi Lu, the Brussels Trade Mart in Belgium, and the Westin Charlotte in North Carolina.

Portman Holdings is the development division of the Portman companies, a real estate owner, developer and architectural firm, founded in 1953.

Thomas Arasi, president of Portman Holdings, said, ‘We have a long track record in China, having developed the renowned Shanghai Centre mixed-use property, which consists of luxury apartments, office, retail, and the Portman Ritz-Carlton hotel. Furthermore, John Portman and Associates has designed some of the country’s most exceptional luxury hotels, including the Portman Ritz-Carlton, The Westin Shanghai at Bund Centre and J.W. Marriott at Tomorrow Square in Shanghai, as well as the Park Hyatt at Beijing Yintai Centre and other projects in Jinan and Hangzhou.’
Source: Hotel Interactive

Howard Johnson Plaza Lingang Shanghai has officially opened, becoming the twelfth HoJo hotel in China. This hotel has 182 rooms and suites and 59 service apartments.

Wilburt Chang, Chairman and CEO of Howard Johnson International (China), said, ‘Howard Johnson Plaza Lingang is the first and foremost international hotel in Lingang New City.’

Followed by the opening of Lingang property in Shanghai, Howard Johnson International will have Howard Johnson Plaza Ningbo opening in September and Howard Johnson Hotel Songjiang, Shanghai opening in October this year.

So was there really a Howard Johnson?

Most certainly. Howard Johnson (1897-1972) finished elementary school and then went to work in his father’s cigar business. He served during World War I in the American Expeditionary Force.

In 1925, he bought a small soda shop, the Walker-Barlow drugstore in Quincy, Massachusetts. The store sold three flavors of ice cream: chocolate, strawberry, and vanilla. He improved the ice-cream, increased the sales. In 1929 he started opening restaurants and in 1935, Howard Johnson went into franchising.

By 1954, the chain had 400 restaurants and started with motels. Johnson’s son, Howard B. Johnson, took over the company in 1959. The size of the restaurant chain topped over 1,000 by the late 1970s, with about 500 motor lodges. After that there were numerous splits and diversifications and Howard Johnson would never recognize the hotels of today.

So, yes, there was a Howard Johnson. And his reputation is that he was as mean as sin and his principle hobby was cutting costs. That was then. Now Howard Johnson International is known for running hotels on the basis of guest comfort and convenience.
Source: China Hospitality News

Marriott has opened a set of executive apartments with surely the longest title on record — Union Square Shanghai Pudong Marriott Executive Apartments. This extended-stay hotel is run by Marriott under a management agreement with Shanghai Xing Sheng Industry Development Group. This is the second Marriott Executive Apartments property in Shanghai, and the fourth of its kind in China.

This 223-unit facility is in the heart of the Lujiazui district of Pudong. Office towers, high-end residential buildings, trendy restaurants, lots of shops.

The hotel is 38 stories high and each apartment has a fully equipped kitchen, plasma screen television, high-speed internet access, three-time weekly housekeeping services, and 24-hour concierge service.
Source: Hospitality News