https://www.khmertimeskh.com/501051025/oakwood-premier-promises-a-blend-of-luxury-and-tradition

The popularity of serviced apartments has been increasing in Cambodia rapidly. Though the country has numerous serviced apartments, there is a shortage of international branded apartments in the Kingdom. The launch of The Oakwood Premier Phnom Penh, scheduled to be in the second quarter of this year, assumes significance due to the project’s novelty and concept.

While explaining the significance of branded services apartments in Cambodia, Oakwood General Manager Demian Jung told Khmer Times, “There are numerous serviced apartments in Cambodia, but few managed under an international brand. This is why we are most excited to be introducing Oakwood Premier Phnom Penh to Cambodia in the second quarter of this year.”

He also described the scenario for serviced apartments in Vietnam. “I was in Vietnam 15 years ago in Ho Chi Minh city for the pre-opening property of an InterContinental serviced apartment. During that time, serviced apartments were at its earliest stages in Vietnam. There were not many serviced apartments in the city then, yet there was much interest from business executives who were visiting the city. Thus, the property enjoyed high occupancies during that period due to the limited supply of serviced apartments in Ho Chi Minh City.”

Oakwood now has two properties in Vietnam, with one set to be opened later this year. It also has seven properties in Thailand, with two new properties scheduled to open this year.

He felt that Cambodia has good potential in this sector. “Comparing Cambodia with neighbouring countries like Thailand and Vietnam, I see an equally extensive amount of competition in similar offerings. Whilst the entry of international serviced apartment brands into Cambodia may still be low, there is a large presence of independent and regional serviced apartments to accommodate the growth in demand. In fact, residential developments like condominiums are increasingly being converted into serviced apartments locally.”

Serviced apartments under the Oakwood brand offer a hybrid mix of offerings to the market, with a mix of both hotels for shorter stays and apartments for longer stays.

While explaining the market potential for such apartments in the Kingdom, Jung said, “In Cambodia, the number of people with a working visa stands at around 50,000 individuals, and out of the 50,000, less than five percent can afford to stay in serviced apartments, and even less than that for luxury serviced apartments. The supply for luxury serviced apartments in particular currently outnumbers the demand.”

The target of Oakwood Premier Phnom Penh will be the luxury market.

“Although we prefer to have more long-stay guests in our serviced apartments, our strategy would be to offer both short and long-stay for our property.”

He also analysed the demand potential for serviced apartments in Sihanoukville and Siem Reap. “It would be a similar case for Siem Reap and Sihanoukville. The business would be dependent on the number of expatriates living in the area, which account for about 90 percent of the market of serviced apartments, and their capacity to pay for serviced apartments. At the moment, Sihanoukville seems promising as there are more investors in the area. Siem Reap on the other hand is a tourist destination and I anticipate greater demand for serviced apartments post-pandemic, especially as travellers seek out a safer and more self-contained residence.”

On Cambodia’s future prospects in condotels and branded serviced apartments, he said, “Within the accommodations sector, there has definitely been a growing trend of serviced apartments becoming the preferred form of accommodation. Beyond the expected increase in demand from consumers, investors and property owners have also witnessed the ability of serviced apartments to ride the peaks and troughs of the business over the pandemic, which paves the way for a definite shift in direction for many players.”

About the progress of Oakwood branded serviced residences, he said, “Oakwood is a global operator and pioneer of the concept of serviced apartments and extended stay segment with over 50 years of experience. With more than 80 properties established in over 41 destinations, the group’s 13,000 units span a suite of eight distinct brands that offer accommodation options comprising elegantly-furnished serviced residences, hotels, resorts and unfurnished multifamily homes. From functional apartments that deliver the essentials, and crafted journeys that are as remarkable as each destination, to distinctive stays as well as distinguished lifestyles, Oakwood’s portfolio of brands is tailored for guests across all of life’s moments.

“Oakwood Premier in particular caters to sophisticated travellers looking for luxury. Conveniently located in the heart of the city, the Oakwood Premier brand of serviced apartments combine all the amenities and services of a luxury hotel, from concierge services to fitness centres, restaurants, meeting and event facilities and more. What differentiates the Oakwood Premier brand further, is an exclusive mobile bar experience which delivers the evening lounge indulgence to the privacy of guests’ apartments. A hallmark brand experience and an industry’s first, the Oakwood Premier Mobile Bar was launched in June 2021 across all Oakwood Premier branded properties.

“Oakwood Premier Phnom Penh is located at the heart of Phnom Penh’s city centre, and will open in Q3 this year with 207 hotels rooms and serviced apartments. With spacious accommodations that range from 32 sqm for a Deluxe Room to 274 sqm for a three-bedroom unit and 547 sqm for a Penthouse, the property sits as an excellent base for both short and long stays, with facilities such as a medical centre, international school and retail complex at our doorstep, and major attractions just minutes away by car.

Oakwood Premier Phnom Penh is likely to be opened in August this year.

“The pandemic has affected the schedule which caused some delays in the completion of the project. However, we are at the final stage and conducting final touches of the property. We expect to soft open the property as scheduled by August this year, and a grand opening slated later for when the situation gets better.”

Highlighting the salient aspects of its residences, Jung said, “There are many good serviced apartments in the city by location and facilities. However, the offering of the amenities of a full hotel, expanded space of an apartment and convenience of comprehensive facilities such as an on-site all-day dining restaurant, banquet facilities and green spaces will definitely play to our benefit at Oakwood Premier Phnom Penh.”

“Our location at Phnom Penh City Centre provides our guests with strategic access to key parts of the city whilst the immediate courtyard gardens at One Park keeps the comforts of home close by,” he added.

While talking about the future of branded serviced apartments in the Kingdom, he observed, “There has definitely been a growing trend of serviced apartments becoming the preferred form of accommodation due to increased demand from consumers, and the ability of serviced apartments to ride the peaks and troughs of the business over the pandemic.

Cambodia has already started to see the shift in demand from short-stays to extended stays, and properties reacting to the demand – hotels offering extended stays, condominium properties being converted to serviced apartments and so on.”