Report

The emergence and growth of serviced apartments in Brazil

The Brazilian hotel and real estate market is experiencing significant changes driven by the emergence of new startups and the evolving lifestyle preferences of new generations.

This has led to the development of innovative short- and long-term rental platforms and specific real estate products. The growth of serviced apartments is a notable trend, offering a different proposition for both investors and residents, supported significantly by startups known as proptechs.

Definition and Features of Serviced Apartments
Serviced apartments are furnished residential properties intended for lease, which can range from short to long-term stays. Typically, these units come with an equipped kitchen, hotel amenities, workspace with Wi-Fi, and optional services like room service and cleaning. Buildings often include common areas such as gyms, laundry facilities, and conference rooms. This accommodation type appeals to travellers seeking a more personalized and private experience than traditional hotels, with greater flexibility and less bureaucracy in the leasing process.

Market Trends and Consumer Preferences
The serviced apartment market has shown resilience, even during the pandemic, by catering to the demand for longer stays and more residential-style accommodations. This model has proven advantageous over traditional hotels, especially during periods of restricted movement. The primary customers for serviced apartments include corporate travellers, relocating executives, students, families on vacation, and digital nomads. The preference for serviced apartments is driven by a desire for a local living experience, convenient locations, and the blend of business and leisure activities (Bleisure).

Market Opportunities
The operational profitability of serviced apartments has attracted investors, developers, and hotel chains. The lower operating costs, longer guest stays, and flexibility in adopting new technologies make this model more resilient during economic downturns. New ventures are emerging, fully leasing and managing properties under private labels, benefiting from standardized services and centralized management.

Comparisons with Vacation Rentals
Serviced apartments differ from vacation rentals in that they offer standardized services and amenities, providing a consistent quality of accommodation. Vacation rentals, popularized by platforms like Airbnb, cater to a wide range of short-term stays but often lack the standardized service levels of serviced apartments. Despite the growth of vacation rentals, the serviced apartment model offers more reliability and security, particularly for business travellers.

The serviced apartment sector in Brazil is poised for continued growth, driven by the demand for flexible, long-term accommodations with hotel-like services. The market’s evolution offers significant opportunities for investors and developers, especially in large urban centres. The integration of technology and innovative business models will further enhance the appeal and profitability of serviced apartments.