• Can you give us a brief career history, and tell us how you came to be in the serviced apartment sector?
“My preliminary introduction into the serviced apartment arena, 14 years ago, was through my recruitment career into the corporate housing world. On exiting recruitment, and having gained insight into a growing, yet reasonably unidentified sector in the UK, I was nonetheless determined to enter the serviced apartment arena. These were challenging times as this was briefly after the New York terror attacks of September 11th, which considerably impacted the world of global travel and consequently the serviced apartment sector. Since those dark years, it is astonishing to see the trajectory and how far this industry has come. That said, I was fortunate to be able to gain enormous insight and learnings from experiencing those turbulent times. It certainly moulded my commercial character to remain focused, look to the future and to not be afraid of taking risk. I still reiterate that the most memorable, inspiring and rewarding experiences come from navigating and succeeding through notoriously demanding times – and it makes the successes all the sweeter! I am delighted to also be serving on the Institute of Travel Management board as a supplier director from January 2016.”
• Tell us about Clarendon and what your new role entails.
“As Clarendon enters an growth period, my role entails laying the foundation of mapping the future for increasing revenue and client portfolio diversity. It is essential to remain relevant, yet reach creatively and be open minded in a crowded market, constantly assessing business and associate performance. More than ever, relationship transparency, creativity and issue resolution are fundamental to sustained success. Clarendon’s essential vision in preparation for expansion has been for technology investment and to seriously challenge the status quo. Intensifying sales progression and performance delivery is essentially aligned with property expansion to meet the goals and objectives of the organisation, ensuring that the business exceeds its sales budgets and goals in the most effective way.”
• Does Clarendon own as well as operate its apartments?
“Clarendon is open for business and has stimulating plans for the future. Imminently, the focus is to expand its portfolio, currently 30 per cent owned with the balance leased, in key locations within and beyond the usual markets of City and Canary Wharf. As owner-operators, this allows for aggressive pricing options to direct corporate relations, who are relentlessly pressurised and incentivised for delivering quality solutions at reduced costs. To add, with wholly operated apartments, it guarantees first-hand guest experience, avoiding layered and tiered guest communications through additional channels.”
• What are the biggest challenges you face when looking for new properties in London? Are you competing with other uses (resi/office etc) as well as other operators?
“Economic uncertainty and reduced confidence from the Square Mile, has been building for some time. Following the referendum, businesses have deferred decision-making regarding recruitment and investment, making it extremely challenging to predict and commit their need for demand. For the serviced apartment sector, we experience as a result that the corporate world is unable to educate on budget and geographic locations for housing, increasing the property procurement risk to operators. With an overcrowded market and a considerable supply of inventory, the sector should be warned of the risk of the commoditisation of product. Procuring new product takes a balanced and calculated approach. Some of the property prices seen in the past 12 to 18 months will doubtfully be sustained, and it is being seen that many who have paid over market rates during that period will most likely be feeling the implications of those decisions. Identifying property at this time isn’t the challenge, and there is opportunity to procure with flexible terms at affordable investment, but committing to that geographic location is more of the challenge when demand is so fluid.”
• What is the mix of business/leisure guests at your properties, and is it changing noticeably?
“Clarendon has always successfully focused its efforts towards business travel guests and continues to experience a 98 per cent corporate clientele which is primarily where the required solution is met. Clarendon’s average length of stay is 42 nights which meets the demand requirement for this demographic. This is also witnessed through its successful digital marketing activity which is seeing steady growth in long stay enquiries.”
• Do you use Airbnb or similar to sell short-stay inventory? If not would you consider it?
“Clarendon has recently invested significantly in new software to broaden distribution channels, especially where portfolio suits multi-channel distribution. Airbnb has added disruptive, yet welcomed energy to our sector, in particular their active lobbying of local government for change and relaxation of dated legislation. Both buyers and guests booking direct have variable pricing points and continue to seek new and innovative solutions to their needs. Airbnb continues to move with the times and through partnering with the likes of Concur offers the complete solution. Clarendon has seen success with Airbnb for select properties and would continue to do so where the there is an alignment of end user and product.”
• What are the company’s plans for expansion over the next few years?
“As an experienced market player, Clarendon has played witness to the evolution of this sector. Whatever your take on the maturity of the London serviced apartment sector, one thing is for certain, there is a plethora of apartment owners, operators, agents and new entrants creating a crowded space in our sector. Having 28 years behind us and a flexible part owned/part leased business model, Clarendon’s growth has been organically fuelled. We see exciting opportunity in the future of our online procurement technology and have a number of exciting acquisition opportunities to bring to market.”
www.clarendonlondon.com</p
