Apart-hotels exist in this weird middle ground. You’re not quite a hotel, not quite a rental apartment. Your guests want the independence of an apartment but the convenience of hotel services. They might stay for three days or three months, and each type of guest has completely different needs.
If you’re running an apart-hotel, you know the struggle. Traditional hotel software doesn’t understand extended stays. Vacation rental platforms treat you like someone’s spare bedroom. And guests are often confused about what exactly you offer.
But one apart-hotel in Madrid just proved that with the right approach, apart-hotels can absolutely crush traditional hotels on both occupancy and revenue. Here’s their story and exactly how they did it.
The Apart-Hotel Identity Crisis
Let’s talk about what makes apart-hotels so tricky to run:
You’re Competing Against Everyone
- Hotels for business travelers who want convenience
- Vacation rentals for families who want space and kitchens
- Extended stay hotels for corporate housing
- Serviced apartments for relocating professionals
Your Guests Have Wildly Different Expectations
- One-night guest: Wants hotel-style service and convenience
- One-week guest: Wants some independence but daily housekeeping
- One-month guest: Wants apartment-style living with minimal interference
- Three-month guest: Wants to feel like they live there, not visiting
Traditional Systems Don’t Get It
Most hotel software assumes:
- Guests stay 1-3 nights
- Everyone wants daily housekeeping
- Pricing is per night only
- Services are standardized for everyone
But apart-hotel guests are different. They need flexibility, space, and services that adapt to their stay length.
Success Story: How Alma de Madrid Cracked the Code
Alma de Madrid sits in Madrid’s Puente de Vallecas district. Beautiful modern apartments with full kitchens, pet-friendly policies, and flexible staying options. Sounds perfect, right?
Their Reality Check
- Occupancy stuck at 45% despite being in a great location
- Losing bookings to both hotels and vacation rentals
- Pricing confusion – how do you price a 2-week stay?
- Guest expectations all over the map
- Manual everything – bookings, check-ins, housekeeping coordination
The owner was frustrated. “We had these gorgeous apartments perfect for extended stays, but we couldn’t get people to find us or understand what we offered.”
Month 1: Getting Found by the Right Guests
The Booking Problem: Most apart-hotels show up in searches alongside regular hotels. A business traveler looking for a 3-week corporate housing solution gets mixed in with tourists wanting a one-night stay.
What Alma Did:
- Extended stay focused website that clearly explained their value
- Flexible booking options – guests could easily book weekly or monthly rates
- Corporate traveler messaging highlighting kitchen facilities and space
- Family-friendly positioning showing apartment layouts and pet policies
The Magic: Their booking engine actually encouraged longer stays by showing better per-night rates for extended periods.
Result: Direct bookings increased 45% in the first month
Alma’s booking transformation shares similarities with other successful properties. Learn how Hotel Agoncev achieved 110% direct booking growth using similar strategies adapted for city hotels.
Month 2: Making Extended Stays Feel Natural
The Service Problem: A guest staying one month doesn’t want daily housekeeping interrupting their “home” routine. But they do want the option for service when they need it.
Alma’s Solution:
- Flexible housekeeping schedules based on guest preference
- Digital check-in perfect for extended stay guests who don’t want front desk interaction
- Apartment-style amenities – kitchen starter packs, grocery delivery partnerships
- Local living guides instead of typical tourist information
The Smart Part: Guests could adjust their service level during their stay. Start with daily housekeeping for the first week, then switch to weekly once they settled in.
Result: Occupancy jumped to 72% as guests started staying longer
The digital check-in system that worked so well for Alma is part of a broader trend. See how digital reception systems help city hotels save £4,000+ monthly while improving guest satisfaction.
Month 3: Pricing That Actually Makes Sense
The Revenue Problem: Most apart-hotels price like hotels (per night) or like vacation rentals (weekly discount). But extended stay guests think differently about value.
Alma’s Pricing Strategy:
- Progressive discounts – the longer you stay, the better the rate
- All-inclusive options for extended stays (utilities, WiFi, basic supplies)
- Flexible booking – guests could extend stays easily with automatic rate adjustments
- Corporate packages for business relocations and project assignments
The Breakthrough: They started packaging services differently for different stay lengths:
- 1-7 nights: Hotel-style with daily housekeeping
- 1-4 weeks: Serviced apartment with flexible cleaning
- 1+ months: Apartment living with monthly rates and minimal service
Result: 88% peak occupancy with 22% higher average daily rates
Want to see the complete numbers behind Alma’s transformation? Read the detailed Alma de Madrid case study showing month-by-month progress and exact revenue figures.
The Extended Stay Guest Psychology
Here’s what Alma learned about different types of extended stay guests:
The Corporate Relocator (2-6 months)
What they want:
- Predictable monthly costs (no surprise fees)
- Home office space with reliable WiFi
- Kitchen for healthy eating and cost savings
- Flexible lease terms for uncertain project timelines
What they’ll pay extra for:
- Gym access or partnerships
- Grocery delivery services
- Airport pickup for initial arrival
- Local orientation services
The Medical Tourist (2-8 weeks)
What they want:
- Quiet, comfortable recovery space
- Easy transportation to medical facilities
- Kitchen for special dietary needs
- Minimal daily disruption
What they’ll pay extra for:
- Medical facility shuttle
- Meal preparation services
- 24/7 support contact
- Accessible room features
The Digital Nomad (1-3 months)
What they want:
- Excellent WiFi and workspace
- Flexible cancellation for travel changes
- Local experience recommendations
- Community/networking opportunities
What they’ll pay extra for:
- Dedicated workspace areas
- Local SIM cards and tech support
- Co-working space partnerships
- Social events with other long-term guests
The Family Transition (1-6 months)
What they want:
- Space for kids to feel at home
- School district information
- Family-friendly neighborhood guides
- Flexible room configurations
What they’ll pay extra for:
- Childcare referrals
- School enrollment assistance
- Family activity recommendations
- Larger apartments or connecting units
Technology That Actually Works for Apart-Hotels
Booking Engine Features That Matter
Flexible Date Selection:
- Easy weekly and monthly booking options
- Calendar showing progressive discount pricing
- Instant quotes for any stay length
- Corporate booking forms for extended stays
Guest Communication:
- Pre-arrival questionnaires about service preferences
- During-stay communication for service adjustments
- Local living guides customized by stay length
- Easy extension and modification options
Operations That Scale
Housekeeping Management:
- Flexible cleaning schedules by guest preference
- Apartment turnover workflows (different from hotel rooms)
- Inventory management for kitchen supplies and amenities
- Long-term guest maintenance coordination
Guest Service Automation:
- Different welcome packages by stay length
- Automated local living information
- Service request systems for apartment-specific needs
- Billing systems for monthly stays and utilities
Revenue Strategies That Work
Pricing Models for Different Segments
Nightly Rates (1-6 nights):
- Compete with hotels on convenience
- Include hotel-style services in base rate
- Premium pricing for apartment space and amenities
Weekly Rates (7-29 nights):
- 15-25% discount from nightly rates
- Flexible housekeeping options
- Kitchen starter packs included
Monthly Rates (30+ nights):
- 30-40% discount from nightly rates
- Apartment-style living with minimal service
- All-inclusive options with utilities and WiFi
Upselling Opportunities
Service Add-ons:
- Grocery shopping and delivery
- Airport transfers for arrivals
- Local experience packages
- Workspace upgrades and business services
Extended Stay Services:
- Pet care and walking services
- Laundry pickup and delivery
- Meal kit delivery partnerships
- Cleaning service upgrades
Common Apart-Hotel Mistakes
Trying to Be Everything to Everyone
Don’t try to compete with hotels on one-night stays AND vacation rentals on weekend getaways AND extended stay hotels on corporate housing. Pick your primary market and do it really well.
Hotel-Style Pricing for Extended Stays
A guest staying 6 weeks shouldn’t pay the same per-night rate as someone staying one night. Your pricing should encourage longer stays, not penalize them.
One-Size-Fits-All Service
A monthly guest doesn’t want daily housekeeping. A two-night guest doesn’t want to figure out the washing machine. Match your service to the stay length.
This personalisation challenge isn’t unique to apart-hotels. Learn how Coco Boutique Hotel created personalized experiences that helped them beat big hotel chains.
Forgetting About Local Living
Extended stay guests want to live like locals, not tourists. Partner with grocery stores, gyms, co-working spaces, and local services instead of just tourist attractions.
Implementation Roadmap for Apart-Hotels
Week 1-2: Market Positioning
- Define your primary guest segments (corporate, medical, family, nomad)
- Audit your current pricing – does it encourage extended stays?
- Review your marketing – are you attracting the right guests?
- Analyze your competition – hotels, vacation rentals, extended stay
Week 3-4: Booking Experience
- Update your website to highlight extended stay benefits
- Create flexible booking options for different stay lengths
- Develop service packages by stay duration
- Add corporate booking forms and information
Month 2: Operations Optimisation
- Implement flexible housekeeping schedules
- Create apartment turnover procedures
- Develop local living guides and partnerships
- Set up guest communication workflows
Month 3: Revenue Optimisation
- Test progressive pricing discounts
- Launch corporate outreach for extended stays
- Develop upselling packages
- Monitor and adjust based on booking patterns
The Apart-Hotel Advantage
When you get it right, apart-hotels have huge advantages over traditional accommodation:
For Guests
- More space than hotel rooms
- Kitchen facilities for independence and savings
- Flexible service levels based on needs
- Better value for extended stays
For Operators
- Higher revenue per square foot than vacation rentals
- Longer average stays than hotels
- Less turnover costs with extended guests
- Premium pricing for space and flexibility
Measuring Success
Track these metrics monthly:
- Average length of stay – should increase over time
- Occupancy by stay length – aim for 60%+ extended stays
- Revenue per available apartment – should beat hotel RevPAR
- Guest satisfaction by stay type – different expectations to manage
- Booking source analysis – direct vs. OTA performance
Your Apart-Hotel Assessment
Answer these questions honestly:
- What percentage of your guests stay longer than 7 nights?
- Do your rates reward longer stays or penalize them?
- Can guests easily book monthly stays on your website?
- Do you offer different service levels for different stay lengths?
- Are you marketing to extended stay guests or just hoping they find you?
If you answered “no” to more than two questions, you’re leaving money on the table.
The Bottom Line
Alma de Madrid proved that apart-hotels can dramatically outperform traditional hotels when they embrace what makes them different instead of trying to copy hotel operations.
The key is understanding that extended stay guests aren’t just hotel guests who happen to stay longer – they’re a completely different market with different needs, expectations, and willingness to pay.
Get the positioning right, price for extended stays, and give guests the flexibility they want, and your occupancy numbers can look like Alma’s: from 45% to 88% in just three months.
Ready to optimize your apart-hotel for extended stay success? Get a free assessment of your current setup and see where the biggest opportunities are hiding. Our apart-hotel solutions integrate with the same platform that helps city hotels increase direct bookings and streamline operations.