Serviced Offices Help Companies Cope With Higher Operating Costs

Recently, four of the Emirates have been establishing innovative offerings for the serviced office concept. Fujairah, Ajman, Hamriyah (Sharjah) and RAK are beginning to offer unique serviced office facilities to assist new companies that are planning start-up operations in the United Arab Emirates. The serviced office facilities will help companies to establish a presence in a more cost effective manner than the traditional serviced office concept.

Higher operating costs in Dubai and Abu Dhabi are discouraging smaller start up companies from establishing a presence in the United Arab Emirates. The new serviced office concept which targets these companies is offered in a lesser known free zone with services including e-Office and Flexi-Desk. The unique serviced office space has the address of an office along with meeting rooms and telephone numbers of an office. The difference is that the client is not actually in the office space.

The e-Office serviced office facilities in Ajman free zone offer table space with access to high speed Internet. The center houses business desks with interiors and facilities including meeting rooms, board rooms, and a restaurant.

The Flexi-Desk serviced office facility in the RAK Free Trade Zone is a shared and networked desk which is designed for single person users such as self-employed businessmen. A furnished and semi-enclosed office is offered with one executive desk and chair along with a private email address and separate post office box number.

These four Emirates have recognized there is a growing trend by start-up companies to seek economical options and the new serviced office concept being offered in Fujairah, Ajman, Hamriyah (Sharjah) and RAK is a solution to bridging this gap. The cost difference between the Dubai Airport Free Zone Authority and the Jebel Ali Free Zone Authority and the four new free zones in the Emirate varies from five to ten times. This is motivating the smaller companies to go for the serviced office Flexi-Desk concept. The ease of getting a license is also very convenient with Fujairah Free Zone offering a ‘One Visit, One Window, One Hour’ operation.

Serviced office Flexi-Desk is also convenient for investors who desire to operate with minimum resources and only have one or two visa requirements. With Flexi-Desk, these companies can open a bank account anywhere in the United Arab Emirates and export or import goods from any of the seaports in this region.

Serviced office start-up costs are much higher in the Dubai Airport Free Zone Authority and the Jebel Ali Free Zone Authority and many times there is a wait list of up to 30 days. The serviced office Flexi-Desk has been successful in bridging this gap for small start-up companies trying to establish a presence in the United Arab Emirates.

Serviced Apartments the Most Profitable Investment in Dubai

As a result of the rise in the tourism industry in Dubai, serviced apartments are rapidly becoming the most profitable investment with serviced hotel apartments in the lead. There are many of these projects underway throughout the city and not only are they designed to attract investors but also serve a growing demand as well.

Schon Properties, a major developer in Dubai, currently has four projects in various sectors with a new concept of mixed use. The Schon Business Park and the Dubai Lagoon Development are two examples of the success of the company’s vision. The Schon Business Park, leased up to 75% within five days. One of the main reasons for the high demand was the ideal location within Dubai Investments Park. The Investments Park incorporates office, serviced apartment, retail and recreational areas all at the same site, and is within close proximity to Dubai World Central, Jebel Ali Free Zone, and the Jebel Ali International Airport.

The four new projects will be designed with the same concept in mind. The new properties will accommodate small businesses and provide a work from home, home from work, type of environment with a unique combination of serviced offices and serviced apartments. The company predicts that the concept will prove popular as commercial rents continue to rise.

According to Daniel Schon, Vice President of Schon Properties, the four projects that are currently underway will allow people to utilize one space for their business and residential needs. This will solve the problem of rising rental costs that people and businesses face when moving to Dubai. Schon commented that serviced hotel apartments are definitely the most profitable due to the fact that Dubai is built on tourism.

As a result of extensive research conducted by Schon Properties, the investment offers a phenomenal return. Following researched based on ten year historical information of the tourism market, the investment has projected yields of up to 20% per year. This information is a result of research with the Department of Tourism and Marketing, the inflation rate, growth of the serviced apartment industry, and other determining factors.

Schön Properties is a newly established holding company that has several real estate projects in the United Arab Emirates. The company portfolio includes Dubai Lagoon a three billion Dirhams city built in the heart of Dubai Investment Park with over 6 million square feet of development area, 53 buildings consisting of studios 1, 2, and 3 bedroom and penthouse serviced apartments.

Maison Limited Unveils Exclusive Serviced Apartments at Downtown Jebel Ali

Maison Limited, a major Hong Kong real estate developer has unveiled the AED 860m Maison Residence Collection, a serviced apartment complex which will become the gateway to Dubai on approach from Abu Dhabi. The project will be considered downtown Jebel Ali’s most exclusive address.

The Maison Residence Collection is a prestigious boutique serviced apartment residence, offering upscale living accommodations in the heart of New Dubai which is the home to the Palm Jebel Ali, Techno Park and Dubai Waterfront as well as Dubai World Central. It is designed with elegant architecture and will be a prominent landmark that is instantly recognized by those entering Dubai from Abu Dhabi. Maison Limited has set the project to become a landmark of the emirate.

The G+17 serviced apartment tower will be located on Phase Four of Downtown Jebel Ali and will offer world class amenities equal to the world’s leading serviced apartment developments. It is designed to appeal to buyers who seek a distinctive residential address in one of the world’s most advanced cities.

The Maison Residence Collection will include 102 serviced apartment units with lofts, two and three bedrooms, terrace penthouses and ultra penthouses. The architectural design stresses the importance of space, privacy, and individuality, and provides an environment that creates a feeling of ease and relaxation. The development will also offer an exclusive five-star hotel experience with private access and security.

Serviced apartment units will include full furnishings with features that include natural materials such as red brick and natural limestone façade, stained glass skylights with themed landscape, Zen and Japanese gardens. The kitchens and bathrooms contain convenient lifestyle features and clients have access to a fully-equipped gym, multifunction areas for entertaining, an infinity pool, sundeck, and 20,000 square foot indoor spa.

Some of the VIP serviced apartment units will include concierge services, a limousine service, a private club lounge, a 24-hour medical center, a fully managed business centre and 24-hour housekeeping. Other features will include boutique retail shops and restaurants in its lobby as elite shopping and leisure options.

The Maison residence Collection will be classified as a certified green building with recycling facilities provided in each residence. Maison Residence Collection is due for completion Q4, 2011.

Maysan Towers Serviced Apartments Launched in Asmaran

Maysan Towers serviced apartments has recently been unveiled by Emaar Bawadi through a joint venture between Emaar Properties PJSC and Bawadi. The serviced apartment project is the first first residential tower complex comprised of three high-rise apartment towers in the Asmaran community in Bawadi.

Maysan Towers serviced apartments is comprised of three high rise residential towers of 30, 26, and 24 floors and are designed in exquisite Mediterranean style architecture. The new complex is conveniently located within the entertainment and hospitality districts of Asmaran, the Bawadi Square, Bawadi Boulevard with a retail and entertainment market nearby. It is also located within easy access to world class hotels where residents can enjoy amenities such as swimming pools, a fully equipped gymnasium, children's play area and games room. Additionally, there is access to underground parking facilities.

The new Maysan Towers serviced apartment complex is designed to appeal to those who prefer a home that is located in one of the most happening destinations in Dubai and at the same token still removed from the hectic life of the city. Maysan Towers serviced apartments will offer residents a distinctive experience associated with a location advantage in Bawadi with easy accessibility from the main highways in Dubai.

Each serviced apartment unit in Maysan Towers is exquisitely finished in Mediterranean style with fittings that include natural stone countertops and cabinetry in a kitchen equipped with bench-top ceramic electric 4-burner hotplate, dishwasher and refrigerator. The nine feet high ceilings in every unit accentuate the feeling of space and light and all rooms contain tinted windows for comfort and privacy.

When the project is completed, Asmaran will feature a family theme park, 4 million square feet of commercial space, a mall with a leasing area of 3 million square feet, several retailers, more than 5,300 serviced apartments, and nine world-class hotels. All of the facilities will be linked by internal roads and walkways which will lead to a central community center.

Bawadi is one of the longest chains of luxury hotels in the world along a 10 kilometer stretch which will add 51 luxury hotels, 40 million square foot retail space and more than 60,000 rooms to Dubai.

Emaar Properties PJSC is one of the world's largest real estate companies and is rapidly evolving to become a global provider of serviced apartments. Its Vision 2010 is to become one of the most valuable companies in the world by extending its expertise in creating master-planned communities to international markets.

ACW Holdings Partners with Allied Maintenance Company for Serviced Apartment Management

ACW Holdings, a leading property developer in the UAE. and Allied Maintenance Company (AMC) have announced the formation of a strategic partnership between the two companies for serviced apartment facilities management.

ACW Holdings specializes in investment opportunities across the residential, retail, serviced apartment and commercial office sectors in the UAE. The company has introduced European standards in construction to the market and pioneered property investment opportunities in serviced apartment residences specifically for foreign investors.

Allied Maintenance Company (AMC) , specializes in facilities management by providing building and tenant services to residential, commercial and serviced apartment complexes. The company has over 20 years of experience and is regarded as one of the region's leading providers of facilities management. AMC also provides technical infrastructure to business facilities, and currently has operations in Saudi Arabia, Bahrain and the UAE. AMC provides business and serviced apartment facilities management throughout the Middle East.

ACW Holdings chose to partner with AMC after careful evaluation and based their decision on the outstanding reputation, quality and variety of services which AMC provides. According to ACW Holdings' General Manager Ian Pask, the partnership will serve to strengthen after sales services and provide the clients with security and peace of mind.

AMC will be responsible for the entire facilities management for ACW Holdings property portfolio which includes serviced apartments, residential and commercial buildings. ACW Holdings established this partnership to further demonstrate a long term commitment to their clients and to protect the interests of investors and owners. The company was formed in 2004 by a group of UK investors to develop property in the United Arab Emirates, beginning with Dubai.

ACW Holdings currently has two offices in the UAE and two UK. The main corporate office is located in Leeds with a newly constructed sales office in London. The primary focus of the company is on real estate development, real estate agency services, and interior design. ACW Holdings is registered with the Real Estate Regulatory Authority.

In just over four years, ACW Holdings has experienced substantial growth in the real estate industry. The company has numerous serviced apartment and commercial development projects under way with an asset value that exceeds Dhs5bn. The company strives to provide investors with an exclusive selection of real estate investment opportunities that contain the highest European standards of construction, quality, and services as well as excellent facilities management.

Ascott Expands Serviced Apartments to 4 Countries in 2 Weeks

The Ascott Group, the world's largest international serviced apartment residence owner-operator, recently opened four new residence facilities across four countries during the first two weeks in June. The four new serviced apartment properties are located in Australia, Vietnam, Thailand, and Qatar.

The Somerset St Georges Terrace serviced apartment facility recently opened in Perth Australia with the Somerset Hoa Binh in Hanoi, Citadines Sukhumvit 8 in Bangkok, and Somerset West Bay in Doha to follow. The company’s three serviced apartment brands, which are Ascott, Somerset and Citadines, currently span over 56 cities in 23 countries.

The opening of these serviced apartment properties adds to the two properties Ascott recently opened earlier this year, bringing the total to six properties opened in the first half of 2008. The two serviced apartment properties which Ascott opened in China early this year were the Ascott Guangzhou and Somerset Emerald City, Suzhou.

Ascott plans to open five additional serviced apartment properties in Bangkok, Chennai and Singapore by the end of the year according to Ms. Jennie Chua, Ascott's President & CEO of Ascott. The new serviced apartment properties will further consolidate Ascott's position as the world's largest international serviced residence owner-operator. Chua said, “We are now in 56 cities and 22 countries with about 5,000 employees who work with 80 languages across our global network."

Ascott serviced apartment residences are all situated in prime locations with various business, shopping, dining or entertainment facilities nearby. The serviced apartments also offer a range of amenities to compliment the residents’ lifestyle. Residences cater to travelers in the process of relocation, a business trip or leisure travel, and offer a home away from home atmosphere.

The 84-unit Somerset St Georges Terrace serviced apartment property is in the heart of Perth's business district and is within walking distance to a wide variety of restaurants, cafes and quality boutiques. The property is also located near the Perth Convention Exhibition Center.

The 206-unit Somerset Hoa Binh, Hanoi is part of a mixed serviced apartment development that includes an office tower and a retail establishment. The property is located at Hoang Quoc Viet Street, Cau Giay District which is also a ten minute drive from the commercial and civic districts. It is close to the Hoa Lac high technology development zone and Thang Long Industrial Park.

The 130-unit Citadines Sukhumvit 8 is located in one of Bangkok's central residential areas. The serviced apartment property is a five minute walk to Nana Skytrain station. It is also close to major offices, business centers, shopping malls, restaurants, parks and schools.

The 200-unit Somerset West Bay is in the heart of Doha's Diplomatic Area where several Ministry headquarters, embassies and consulates are located. The serviced apartment property is next to the Qatar Financial Centre and adjacent to the City Centre Shopping Mall, one of the country's best known shopping destinations. The Somerset West Bay property is only a fifteen minute drive from the Doha International Airport and is located at the north end of Corniche, offering a scenic view of the Arabian Gulf.

Ascott Serviced Apartments is based in Singapore. The company pioneered Asia Pacific's branded serviced apartment residences in 1984 and launched the regions first real estate residence trust in 2006. Ascott has received numerous industry awards in recognition of its excellence such as the DestinAsian Readers' Choice Awards 2008 'Best Serviced Apartment/Residence Operator' and World Travel Awards 2007.

Serviced Apartment Projects worth Dh300bn under way in Northern Emirate

Serviced Apartment projects worth Dh300bn are currently under way in the Northern Emirates hospitality industry and due to be complete by the year 2011. The hospitality industry is booming in the Northern Emirate region as a result of the number of tourists visiting Sharjah, Fujairah, Ras Al Khaimah and Umm Al Quwain. The tourism industry in these regions is rapidly increasing and is expected to exceed more than five million per year.

With the inception of the growing number of tourists, the emirate's government as well as entities in the private sector have initiated several new serviced apartment developments that will help to expand the amenities and facilities for both leisure and business travelers.

RAK Financial City, will have a new offshore hub for the region's business community and will cover 750,000 sq m and be worth Dh3bn. It will have two 65-floor towers, offices, serviced apartments, hotels and commercial areas.

In Ras Al Khaimah exclusively, hotel occupancy rates have reached 92 percent and visitor numbers are expected to increase 400 percent by the year 2012. The Sharjah Commerce and Tourism Development Authority states that average occupancy levels in the first quarter of 2008 rose to 80 percent, compared with 77 per cent during the same period last year.

In other areas such as the Saraya Islands, the plan is to expand accommodations by including additional hotels, waterfront villas and serviced apartments, mid-rise water view serviced apartment buildings, serviced rental villas and bungalows. The serviced apartment facilities will include spas, retail outlets, restaurants, an entertainment village, an amusement water park, a sports center, and a high-end cultural center.

Marriott is currently planning to build serviced apartments for businessmen throughout the Northern Emirate region and a lot of international hotels are also in the works. The tourism sector was the highest contributor to the emirate's gross domestic product last year due to the heritage and culture of the region.

Recently, the Department of Tourism and Commerce Marketing put a great amount of effort toward marketing Dubai around the globe and as a result the tourists are now looking for dual destination opportunities. This effort has helped to place the United Arab Emirates on the world tourism map and as a leader in the tourism industry.

An increased amount of tourism operators are looking to the Northern Emirates for serviced apartments and other accommodations, due to the overcrowding of the hospitality sector in Dubai. Additionally the European tourism operators are also promoting the emirates as a prime vacationing and business center.

The emirate announced major tourism infrastructure projects earlier in the year, which included luxury resorts, serviced apartments, and hotels. The projects are currently under way in the major cities of the Northern Emirates.

Somerset West Bay Serviced Apartments Open in Qatar, Doha

Nuzul Qatar recently introduced the first serviced apartment complex in Doha’s main Diplomatic Area with the establishment of Somerset West Bay. The luxury serviced apartment facility is located among ministry headquarters, embassies and consulates and within walking distance of the Qatar Financial Center.

The mission of Somerset West Bay is to provide business executives and their families with a healthy balance between family and work life by providing providing a warm and stylish home environment with access to recreational facilities, lifestyle activities and business support services. The serviced apartment facility offers introductory competitve rates for a two-bedroom deluxe unit.

Each serviced apartment residence is exquisitly furnished with fully-equipped modern kitchens, full amenities including indoor swimming pool, fully-equipped gym, sauna and steam room, 24 hour security and professional reception services. An American Grill Restaurant is located on the grounds with around the clock security surveillance. The serviced apartment facility also provides a baby sitting service, broadband Internet access, children’s indoor playroom, DVD library, home entertainment system, laundry and dry cleaning services, meal delivery services, and wireless Internet access on the ground floor.

Somerset West Bay is managed by Ascott International, the largest serviced apartment operator in the Asia Poacific and Gulf Coast regions.

In the past few years, multinational companies have expanded into Qatar which increased the demand for serviced apartment facilities. As a result of corporate expansion, Qatar continues to attract corporate executives from energy, construction, and financial companies. By providing luxury serviced apartment residences that are perfect for business and leisure, corporate executives feel like they are at home and enjoy the conveniences of a lifestyle representative of home.

Somerset West Bay is situated at the north end of the picturesque Corniche in Doha. The serviced apartment accommodation provides an ideal base for guests on business travel or leisure vacation with the city’s most popular businesses, entertainment and recreation venues being located within close proximity to the complex.

Somerset West Bay is owned by Nuzul Qatar, where BARWA Real Estate has 50% ownership. The latter is part of the BARWA's strategic objective to diversify its global investment portfolio to maximize shareholder return on investment following successful serviced apartment expansion into Asia, Europe, Africa and the Middle East.

Layia Hospitality Expands Living Court Brand Serviced Apartments

Layia Hospitality is currently expanding its Living Court Brand of serviced apartments to a new location in Dubai. Opal Living Courts which is a fourth property of Lavia Hospitality Living Court Brands will open in Al Barsha by January 2009.

Opal Living Courts will offer 96 spacious 100 square meter two-bedroom serviced apartments and four spacious and luxurious 140 square meter three-bedroom units fully furnished and well equipped. The serviced apartment units include everything from the television to kitchen utensils to make occupancy easy and efficient.

Opal Living Courts serviced apartment facilities will include a fitness center and a café on the premises which will offer healthy cuisine and in-room dining options.

Layia Hospitality was launched in 2008 and is already providing state of the art serviced apartment facilities in addition to a world-class collection of four and five-star hotels, and luxury serviced villas. Its first hotel property will be set to open its doors in Dubai this summer.

The Living Courts serviced apartment brand facilities cater to business travelers as well as tourists by providing a high quality living environment with a home type atmosphere. The serviced apartments have all the amenities of a world-class hotel while providing the flexibility and comfort of a long stay accommodation with competitive rates. The facilities offer security around the clock along with housekeeping services and maintenance.

Layia Hospitality just opened its first Living Courts serviced apartment facility, Crystal Living Courts, in Al Barsha in February. The facility is among several others operated by Layia Hospitality in Al Barsha. Topaz Living Courts is expectd to open this summer with Layia Hospitality finishing off the year with Ruby Living Courts serviced apartments which will be located in the Al Khan area of the Emirate.

Like Opal Living Courts, these new additions to Living Court brand serviced apartments will be fully equipped spacious units with luxurious amenities including a sauna, fitness center, allocated parking space, steam room, and jacuzzi.

In addition to its Living Courts brand serviced apartment facilities, Layia Hospitality carries three different brands of accommodations: Layia Hotels, Layia Hotels and Residences, and Layia Serviced Villas.

Layia Hospitality is a division of Layia Hotels Management Company which has headquarters in Dubai and United Arab Emirates. It currently has nine proprties signed which are due to open within the next 18 months and plans to expand its serviced apartment facilities across the Middle East and Africa in the near future.

Shortage of hotels benefits the serviced apartment market

A serviced apartment is a great compromise between a hotel and a rented apartment. It is a fully furnished and equipped apartment that can be booked on a short or long term basis, and comes with most of the features you would expect in a hotel, such as maid service and access to restaurant and gymnasium facilities. Serviced apartments can form part of a hotel complex, or a network of purely self-catering apartments.

A serviced apartment gives you more space, privacy and flexibility than a hotel, and can be more cost effective if booked on a long term basis. On the other hand it takes away the hassle of finding a good house or apartment to rent, and helps you to avoid domestic chores such as cleaning, maintenance and dealing with utility bills.

Growth of the serviced apartments industry in the Middle East

There is a common view that the shortage of hotels in the Middle East is driving the rapid growth in the serviced apartment industry there. To a certain extent this is true, as a shortage of rooms is causing an increase in the number of travelers staying in serviced apartments for a short period of just a couple of days. Prices for serviced apartments are also increasing because of the demand for somewhere to stay.

However, there may be more to it than that. Leading hotel brands that have struggled to stay profitable in an unpredictable industry, where revenue can be seasonal, have seized the opportunity to provide mixed use facilities where they can combine both long and short stay customers. This enables them to reduce the impact of seasonal highs and lows.

There are a number of new projects planned in Dubai over the next three years, which will mix serviced apartment facilities with more traditional hotel rooms. 24 planned hotels will also include serviced apartments; a total of 4373 units. 25 new complexes providing solely serviced apartments are also due to open, providing an additional 7862 units.

One example of the large scale investment in serviced apartments in Dubai is the $150 million InterContinental Residence Suites Dubai Festival City, opening this year. The facility targets two types of guests; those that are on short term business projects of up to six months in the area, and those that are relocating to Dubai and need somewhere to stay while they find a permanent address.

Another new facility to arrive in Dubai this year is the Jumeirah Living properties, part of a global development of eight properties which provide unique services for their customers. Each property will have a lifestyle concierge service to deal with guests’ requests before they arrive, a residents’ lounge, and a deli service providing fresh fruit, vegetables, and prepared meals at any time of the day.

Why are business travelers switching to serviced apartments?

For business travelers, staying in a hotel can be one of the most expensive and exhausting aspects of their job. More and more are choosing the cost effective and homely alternative of a serviced apartment.

Many companies are realizing the cost savings incurred by using serviced apartments for their employees to stay in, rather than using expensive hotels. There are an enormous number of designers, architects and engineers that come and go in Dubai, working on various building projects, and these are increasingly being put up in serviced apartments. Often companies use a single apartment with two or more rooms so that their employees can share, reducing costs even further.

For those business travelers working on a fixed length project, or arriving in Dubai several months ahead of their families, serviced apartments have many advantages over hotels. They usually have more space, which can be adapted to create a home office, or gym area, and they have more flexibility in catering and lifestyle.

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