What is the most important factor in investing in serviced apartments?

Lot is the first element. Compared with the traditional real estate market, which emphasizes the significance of lots, serviced apartment products have stricter requirements on lots. From the perspective of tourists, serviced apartments are mainly business people, managers and technicians from domestic and foreign institutions in Shanghai and some domestic and foreign business people who travel to and from Shanghai. They have not settled in Shanghai for a long time and have high welfare subsidies, so they will consider choosing a serviced apartment as their residence. For such a customer group, convenience is its concern. Convenient transportation, convenient life, convenient entertainment, convenient business and so on constitute the theme of convenience, and all these conveniences depend on the location of the project. The prime commercial location with convenient transportation, the gathering and flowing area of foreign companies, foreigners and foreign employees, and the mature business center supporting the development of hotels, businesses and entertainment industries will surely become the hot spots pursued by hotel-style apartment investors. High quality is the premise. As mentioned above, the occupants of serviced apartments are generally foreign companies, overseas institutions, senior managers and business people of foreign-funded enterprises in Shanghai. They are generally at a higher level, and they often go in and out of high-end residential quarters and hotels, and have higher requirements for product design and product configuration. From the perspective of product design, investors should avoid choosing too many same product forms in the same area, pay attention to the economic practicability of products, and choose products with compact and flexible room layout, less negative indoor space and less shared public space. From the perspective of product configuration, investors should pay attention to elevator, air conditioner, other mechanical and electrical equipment and furniture, decoration materials, decoration design and other details. For example, elevators, furniture and other mechanical and electrical equipment should be imported brands, air conditioners should preferably be central air-conditioning systems, and decoration materials and design should have a high international reputation, so as to better meet residents' living needs and taste needs, on the one hand, ensure their high rental rate, on the other hand, maintain the high value of real estate, so as to achieve its preservation and appreciation, and realize its investment. Moderate area is an important factor. Judging from the development course of Shanghai serviced apartments, it has roughly gone through three stages: export houses have been transformed into serviced apartments-chain hotel management company apartments-small-sized serviced apartments. The area of serviced apartments transformed from export houses is relatively large, ranging from 100 square meters to 250 square meters. The apartment area of hotel chain management companies is similar to that of ordinary two-bedroom and three-bedroom apartments, ranging from 106 square meters to 148 square meters. A new generation of small-sized hotel-style apartments, the area is more consistent with that of hotel-style apartments, ranging from 50 square meters to 70 square meters, which is basically suitable for one or two people. Judging from the area size, market price and Shanghai's economic development, there are some problems in the renovation of export houses and apartments of chain hotel management companies, such as too large area, high total price and small population in customer orientation. In particular, the total price is high, so it is difficult to guarantee the return on investment and turnover rate, while small-sized hotel-style apartments are more flexible, so the investment value is higher. Brand is the guarantee factor. From the point of view of most developers, it is the fundamental goal to realize the smooth sales of properties and ensure cash recovery, and less attention is paid to the success of the later operation of the project. In the process of project sales, the investment value of the project may be exaggerated in order to raise the sales price and achieve the purpose of sales. Therefore, when choosing investment targets, investors should strengthen the research on the background of developers and their operating cases, pay attention to whether they have a complete rental plan to help buyers rent houses, whether they have a promotion plan with high investment and market segmentation, and try to choose developers with strong strength and high brand awareness. In the later operation of serviced apartments, the brand of hotel property management company and the services it provides directly affect the rental rate and rental price.