--By Bijaya Laxmi Duwal

A safe and flexible accommodation was the prime concern for Udisha Saklainm when she was required to carry out a three-month field study on hydropower dams in Nepal for her PhD degree. An Indian by origin, Saklainm had experienced long-term stay in two different countries while studying, and she was familiar with serviced apartments. Based on the recommendation of her Nepali friend, she booked and reached the Jhamsikhel-based Sun Apartments.

Like Saklainm, many people are visiting Nepal from around the world for different purposes. The consistent and robust growth in tourist arrivals, especially since 2016, has opened opportunities in the tourism and hospitality sector. And while many hotels are facilitating incoming tourists with accommodation, certain tourists who stay for a more extended period want a homelier environment – this is where serviced apartments come into the picture. Gyan Man Maharjan, Proprietor of Sagarmatha Apartment Bread & Breakfast, explains, “Serviced apartments provide spacious suites with a bed, hall, kitchen (BHK), along with basic things needed for daily lives. Tourists in the apartment can enjoy a higher degree of personal value, freedom and privacy. They can cook whenever they like. Such flexibility is impossible in hotels because they consist only of one small room with an attached bathroom.”

Mi Casa Apartment’s proprietor Shailamitra Neupane shares, “Some guests feel bothered when they are served consistently in hotels. So, such tourists also tend to seek serviced apartments rather than hotel rooms.”

More than flexibility, Saklainm admires the fact that Nepali apartments are safe, spacious, well-furnished and well-managed. “I found the serviced apartment better in Nepal because rooms here are spacious and well-furnished compared to serviced apartments in other countries and also everything which I would require including clean drinking water, internet, gas, utensils in the kitchen were kept nicely in proper places,” shares Saklainm adding, “Security is the most important thing. Coming here alone as a woman, I didn’t feel insecure because of the safe environment here. Throughout the day, there is always somebody in the office. When I get bored, I can always go down and talk to them.”

Growing Gradually
The concept of serviced apartments was introduced in 1990 in Nepal when Raju Serawati established Sagarmatha Apartment Hotel at Jhamsikhel. He started the service when many diplomats, intern students, part-time jobholders, volunteers at INGOs in Nepal were in search of flexible accommodations. Serawati established the apartment with an investment of Rs 300 million. Though it ceased its operations during the Maoist insurgency, the apartment was revived in 2010 after its ownership was entrusted to Maharjan. He took it as an opportunity to improve upon the concept and contribute to the tourism sector. Maharjan rebranded it as Sagarmatha Apartment B&B after seven months of study regarding the market, booking process and scope. Now, the service is available in Sanepa with 12 apartments, in Jamsikhel with nine apartments and in Pulchowk with 21 apartments.

“After our successful operation, gradually, the number of other apartment hotels started to increase such as Mandala, Shaligram, Himalaya etc.,” shares Maharjan. With the inflow of tourists increasing yearly, different apartment hotels or serviced apartments such as Mi Casa Apartment, Casa Deyra, Ananya Apartment, Sun Apartment etc. are coming up to accommodate visitors for varying durations. Sun Apartment targets younger expats while Mi Casa generally serves retired tourists who come to Nepal for a vacation.

Cost-Effective
Generally, guests stay at hotels for a short period, consuming expensive food and services provided by hotels. Conversely, serviced apartments are prepared to accommodate guests for the long term and are more economical. Casa Deyra’s managing director, Rupesh Mahato, says only two rooms with AC are available at Rs 10,000 while the other set of rooms with all amenities are available at Rs 6,000 per day. Likewise, Mi Casa Apartment’s Neupane also says the price range starts from USD 50 to 60, i.e. around Rs 5,500 to 6,500 for accommodation in Mi Casa Hotel, while it costs around USD 24, i.e. around Rs 2,500 for accommodation in Mi Casa Apartment per day. Moreover, many serviced apartments offer discounts for a longer stay. Mi Casa Apartment provides a discount of up to 15 percent for tourists who wish to stay longer.

The charges at different apartments in Nepal vary on the basis of location, duration, property variation and amenities.

Marketing Via OTAs
Airbnb, Booking.com, Expedia etc. are the frequently used online travel agencies (OTAs) through which Nepali serviced potential customers are accessing apartments throughout the world.

However, serviced apartment operators expect to have a national booking agency to stop millions in Nepali currency going out to foreign OTAs as commission.

Mishra mentions, “International OTAs have listed around 2000 properties in the country. We have to pay a minimum 15 percent and a maximum 25 percent commission to various OTAs for our booking. So on average, our country is spending USD 720, 000 per month in commission to international OTAs because we don’t have our own OTA.” He says that if a national booking agency were there, even their expenditure for commission could be utilised within the country to contribute to the national economy.

Benefits Both Home Owner and Expats
Serviced apartments benefit not only expats but also the homeowner. Casa Deyra believes that serviced apartments offer an opportunity for the homeowner to invest his/her property by renting suites for accommodation. For instance, those homeowners who are abroad and put up their home as a serviced apartment.

Likewise, for guests, it is easier to get accommodation as they are not required to carry basic things due to their availability in the apartment. However, finding a good location to set up the service is a significant challenge for those that operate serviced apartments.