Serviced Apartments vs. Hotels: Which is Better for Business Travel?

Business travel accommodations significantly impact productivity, wellbeing, and the overall success of business trips. This article compares serviced apartments and traditional hotels to help business travelers and corporate travel managers make informed decisions.

Cost Comparison

Factor	Serviced Apartments	Hotels
Nightly rate (7+ nights)	20-30% lower than equivalent hotels	Higher, especially for premium properties
Food costs	Lower due to self-catering options	Higher with restaurant dining
Additional fees	Often fewer hidden costs	Resort fees, parking, etc. add up
Long-stay discounts	Significant discounts for longer stays	Limited long-stay discounts

For stays of 5+ nights, serviced apartments typically offer 15-30% savings compared to equivalent quality hotels.

Space and Comfort

Factor	Serviced Apartments	Hotels
Average space	30-50% more square footage	Compact, especially in city centers
Living areas	Separate living room and bedroom(s)	Usually single room configuration
Work space	Dedicated desk/work area	Limited desk space
Kitchen facilities	Full or kitchenette	Minimal or none

Amenities Comparison

Amenity	Serviced Apartments	Hotels
Housekeeping	Typically weekly (daily available)	Daily standard
Reception/Concierge	Often limited hours or virtual	24/7 in most cases
Dining options	Self-catering with full kitchen	Restaurants and room service
Laundry	In-unit washer/dryer common	Laundry service at premium prices
Fitness facilities	Varies by property	More common, especially in 4-5 star
Business facilities	Less common, but growing	Business centers and meeting rooms

Suitability by Trip Duration

1-2 Nights

Better option: Hotels

For very short stays, hotels typically offer more convenience with 24/7 services, quick check-in/out processes, and central locations. The premium paid for hotels is less significant for brief stays.

3-6 Nights

It depends on your priorities:

• Choose hotels if: You value daily housekeeping, room service, and on-site facilities
• Choose serviced apartments if: You prefer more space, privacy, and self-catering options

7+ Nights

Better option: Serviced apartments

For stays of a week or longer, serviced apartments offer clear advantages:

• Cost savings become significant
• Home-like environment reduces travel fatigue
• Kitchen facilities provide healthier eating options
• Separate living spaces improve work-life balance
• Laundry facilities eliminate packing constraints

30+ Nights

Better option: Serviced apartments

For extended assignments, serviced apartments are vastly superior, offering:

• Substantial cost savings (often 30-50% less than hotels)
• Psychological benefits of a more permanent space
• Better integration into local community
• Flexibility to personalize your space

Business Traveler Profiles: Which Option Works Best?

The Road Warrior (Frequent Short Trips)

Typical needs: Convenience, predictability, loyalty programs, central locations

Better option: Hotels, particularly within a preferred chain to accumulate loyalty benefits

The Project-Based Traveler (Weeks to Months)

Typical needs: Comfort, space to work, cost-effectiveness, home-like environment

Better option: Serviced apartments, ideally with good workspace and fast WiFi

The Relocating Executive

Typical needs: Temporary housing during relocation, space for family, storage

Better option: Serviced apartments, particularly larger units with multiple bedrooms

The Team Traveler (Groups)

Typical needs: Collaborative spaces, cost control, areas for informal meetings

Better option: Multi-bedroom serviced apartments or apartment-hotels with meeting facilities

Corporate Travel Policy Considerations

For corporate travel managers, consider these approaches:

• Implement a "5-night rule" - Hotels for shorter stays, serviced apartments for longer ones
• Calculate total trip cost, not just accommodation rate (including meals, laundry, etc.)
• Consider traveler wellbeing for longer assignments
• Negotiate corporate rates with serviced apartment providers for consistent availability
• Ensure duty of care requirements are met with both accommodation types

Booking Considerations

When booking serviced apartments for business travel:

• Book further in advance than hotels (inventory is more limited)
• Verify WiFi speed and reliability for video conferencing
• Check proximity to public transport and client locations
• Understand check-in procedures (often less flexible than hotels)
• Confirm cancellation policies (typically stricter than hotels)

The Hybrid Option: Apartment Hotels

For those seeking a middle ground, apartment hotels (like Residence Inn, Citadines, or Adagio) offer:

• Hotel-like services with apartment-style accommodations
• 24/7 reception with some self-catering facilities
• More consistent brand standards than independent serviced apartments
• Often available through corporate booking tools

The optimal choice between serviced apartments and hotels ultimately depends on trip duration, individual preferences, and specific business needs. By considering these factors, business travelers can select accommodations that enhance productivity, control costs, and improve the overall travel experience.