Consider this: A 400 sq ft Taj Club double room costs around Rs 18,000 a day and a two-room (450 sq ft) suite Rs 22,000 a day.
The 1,700 sq ft presidential suite can make your pocket lighter by a whopping Rs 100,000 a day!
Now, contrast this with a 1,500 sq ft two-bedroom residence at the Indian Hotels' serviced apartments, Taj Wellington Mews. It is in the same vicinity of south Mumbai, but costs just Rs 13,500 per day.
The cost effectiveness of service apartments is making them second home for expatriates and business executives on the move.
The information technology, telecom, pharma and banking sector companies that are bringing in their foreign and outstation executives for projects and on short-term transfers, are increasingly looking at serviced apartments offered by international and well-known Indian hotel chains.
According to a Cushman & Wakefield India report, where companies require accommodation for short durations ranging between 1 and 6 months and where landlords are shying away from leasing apartments on a short-term basis, serviced apartments are becoming a viable option.
The apartments are not only for the top brass. Foreign banks and multinational companies are providing accommodation at different levels in the company hierarchy -- from entry level executives who are given shared accommodation to senior management who are provided with one to three bedroom apartments.
These residences provide a running household equipped with amenities like a fully functional kitchen, washing machine, fridge, television, air conditioners, Internet and telephone connection, and 24-hour security.
Residents can avail of daily housekeeping and health spa facilities and a doctor-on-call. They can even hire household help from outside. In some cases, hotels organise regular get-togethers for the residents to offer the feel and security of community living.
"The service apartments work out cheaper than hotel suites. Incidental costs are lower too, as residents can get food and other services from outside," says Anu Nehra, director - sales, Taj Wellington Mews.
Also, banks and MNCs are preferring residences in suburban hotels, where the rates are lower and the location closer to the newly sprung business districts and commercial centres.
The 147-apartment Grand Hyatt Residences, that has been operational since March this year has already reached an occupancy level of 60 per cent, says Sarosh Khatib, director - marketing, The Grand Hyatt. The average stay is from eight months to a year with a minimum stay of 30 days.
A one-bedroom apartment here commands a rate of Rs 6,500 for a one to three month stay, Rs 6,000 for a three to six months and Rs 5,500 for over six months.
In terms of space and facilities, this again turns out cheaper than the average room rent of Rs 5,000 for a standard single room in north Mumbai hotels.
A stay of one to three months at The Grand Residence, Intercontinental, another suburban hotel residency, commands a rate of $160 (Rs 7,200 approximately) for a one-bedroom, $210 (Rs 9,450 approximately) for a two-bedroom and $275 (Rs 12,375 approximately) for a three bedroom apartment.
For a longer stay of three to six months, the rates come down by 10 per cent and for a six-month plus stay, by 15 per cent.
With hotels and private real estate players moving in to cash in on the latent demand, business travellers are all set to be spoiled for choice.
Among the first movers are Indian Hotels' 80-apartment Taj Wellington Mews, the 147-apartment Grand Hyatt Residences, The 42-unit Grand Residency and Four Seasons, which is due for completion by 2005 end.
Others include the Vipul's Peach Tree, Enkay condominiums, and Ambience Apartments in Gurgaon and Savoy Suites in Noida. Oakwood, a global player in the hospitality sector, is also setting up serviced apartments in various cities like Bangalore, Mumbai, New Delhi and Chennai, with the first one slated to become operational in Hyderabad by early 2006.
