Advantages and disadvantages of serviced apartments

The renovated small-sized hotel-style apartment has poor living function, single apartment type, no independent kitchen and living room, and insufficient storage space. Although it has certain advantages in price, it is not suitable for daily life and will devalue the investment.

The cost is too high. Because the management of hotel-style apartments is quite complicated, we must grasp the principles of accuracy, organization and convenience when positioning. Blind pursuit of luxury will not only increase costs, but also be out of touch with the market. In addition, developers lack experience in developing such products, but insist on their own operations, which will also leave hidden dangers for the contradictions after delivery.

The occupancy rate is low. The occupancy rate of most serviced apartment projects is only over 60%, at most about 70%, which invisibly raises the converted unit price of the actual use area of the suite, reduces its cost performance, and directly affects its function of maintaining and increasing value. Hotel property management fee is greater than apartment property management fee.