New-generation aparthotels: combining hospitality, flexibility and rental returns
A hybrid model designed for changing travel habits
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In Brief
In This Article
Halfway between a traditional hotel and a furnished rental, the new-generation aparthotel appeals to guests seeking greater independence without giving up hotel services. A kitchenette, living area, housekeeping, reception, breakfast and shared spaces: the model combines the comfort of an apartment with professional hotel management.
For investors and lenders, its appeal lies in its ability to attract several types of guest, encourage longer stays and generate more consistent revenue. Profitability nevertheless depends on the quality of the location, the positioning and the operational management.
1. Why invest in an aparthotel?
Diversified demand and more predictable revenue
This diversity reduces dependence on a single customer segment and can improve the property’s resilience to seasonal fluctuations. Longer stays also provide greater visibility over future revenue, with several nights secured through a single booking.
This diversity reduces dependence on a single customer segment and can improve the property’s resilience to seasonal fluctuations. Longer stays also provide greater visibility over future revenue, with several nights secured through a single booking.
The model also makes it possible to adjust rates according to the length of stay. A reduced weekly or monthly rate can remain profitable when it limits vacancy periods, distribution commissions and guest turnover costs.
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Which factors strengthen rental returns?
Operations designed to optimise costs
An aparthotel’s performance does not depend solely on its average daily rate. It relies on achieving the right balance between occupancy, length of stay, operating costs and ancillary revenue.
With fewer arrivals and departures than a hotel primarily accommodating one-night stays, an aparthotel can reduce certain housekeeping, linen, reception and distribution costs. Additional services, such as breakfast, parking, laundry facilities, coworking spaces or extra housekeeping, can also increase revenue per guest.
This profitability nevertheless requires rigorous management. Apartments are often larger and better equipped than hotel rooms. Maintenance, energy and furniture replacement costs must therefore be properly anticipated in the business plan.
For banking partners, the strength of the project depends in particular on the depth of local demand, the break-even point, the ability to service the debt and the operator’s experience.
3. The aparthotel: a relevant investment under the right conditions
Finding the right balance between property and hospitality
The new-generation aparthotel can offer attractive rental returns and greater operational resilience. However, it is not a universal solution for every property or every market.
Its success depends on the ability to design a product that is genuinely suited to its environment. A concept that feels too residential may lack appeal, while an offer that is too close to traditional hospitality may create an excessively heavy cost structure.
The challenge is therefore to find the right balance between independence, service quality and operational efficiency. Moon Hospitality supports investors in the assessment, positioning and operation of hybrid hospitality projects, helping to identify the most relevant scenario for each asset.
4. FAQ - Appart-hôtel nouvelle génération
Moon Hospitality answers the questions investors are asking.
What is an aparthotel?
An aparthotel is furnished accommodation that generally includes a kitchenette and living area, combined with hotel services. These may include reception, housekeeping, breakfast or digital assistance. Unlike a standard furnished rental, it is professionally managed and offers a consistent guest experience.
Why invest in an aparthotel?
Investing in an aparthotel makes it possible to target several customer segments and different lengths of stay. This flexibility can improve occupancy, secure more nights per booking and reduce certain guest turnover costs. However, the potential return depends on the location, acquisition price and quality of management.
Is an aparthotel more profitable than a traditional hotel?
It is not automatically more profitable. Longer stays can reduce housekeeping, reception and distribution costs per occupied night. However, the accommodation units are often larger and require more maintenance. Any comparison must therefore consider the full range of operating revenue and expenses.
What criteria does a bank assess when financing an aparthotel?
A bank assesses local demand, pricing and occupancy assumptions, the refurbishment budget, the break-even point and the project’s ability to service its debt. It also considers the operator’s experience, the investor’s equity contribution and the resilience of the business plan in the event of a downturn.
How does Moon Hospitality support an aparthotel project?
Moon Hospitality analyses the market potential, the building’s configuration, the concept positioning and the operating model. This approach makes it possible to compare several scenarios and develop a project aligned with guest expectations, investors’ return objectives and the requirements of banking partners.
