Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

How serviced apartments fared versus hotels during the Gulf lockdown

How serviced apartments fared versus hotels during the Gulf lockdown

Vincent Miccolis, regional boss of serviced property provider Ascott, says investors, developers and owners are looking at model off the back of coronavirus crisis
Global serviced property provider Ascott The Residences has revealed increased interest in serviced apartments off the back of the Covid-19 pandemic.

Vincent Miccolis, Ascott's regional GM for Middle East, Africa, Turkey and India told Arabian Business that none of the properties in the area he is responsible for closed their doors during the coronavirus crisis, despite widespread curfews, lockdowns, movement restrictions and other various government guidelines.

“The good thing about our group and our business model is that we are focusing on extended stays so we’ve been more resilient. A lot of hotels have closed and some maybe won’t reopen soon. Thanks to our long-stay and extended stay business we’ve managed to stay open,” he said.

STR has previously intimated that the impact of Covid-19 globally to the hospitality industry could be as much as $1.2 trillion should the sector not see signs of rebounding soon.

Vincent revealed that occupancy levels dropped as low as 25-30 percent on some properties, while others were able to maintain levels of up to 60 percent. And he said that has alerted owners, investors and developers to their business plan, with many adding a long-stay element into their proposition.

He said: “I’m not saying it’s been a blessing (Covid-19), of course not. It’s been a big crisis, but we’ve managed to weather the storm better than hotels because of our long-stay component.

“We are seeing owners, investors and other hospitality groups as well coming to us, asking for more details, really willing to see how we work.”

Ascott is the global leader in serviced residences and boasts nearly 120,000 units worldwide, with properties in the UAE, Saudi Arabia, Bahrain and Oman, among a myriad of others across the world.

Vincent explained that, in terms of a five-star hotel, operators require, on average, one or 1.5 members of staff per room. However, for serviced apartments, this level drops down to as little as 0.4 in some instances.

“It really depends on the region you’re in and the products, but overall our margins are always much higher than hotels. The cost efficiency of a serviced apartment is much better than hotels,” he said.

“When you have a long-stay component, an extended stay, your overall cost gets lower because you don’t necessarily do a cleaning every day. You don’t need to get your towels changed every day. There’s a lot of things you don’t need on a daily basis because it’s like an extended lease, like a rental concept, but you have the service of the hotel.

“The developers and investors are seeing that now for sure.”
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×