Oakwood Worldwide Kicks Off Aggressive Asia Development Strategy

Oakwood Worldwide, the world's largest serviced apartment management firm, recently opened a complex of 107 apartments in midtown Tokyo, exemplifying an initiative to grow rapidly throughout the Asia/Pacific region.

Oakwood is following through on a plan to open 19 properties in the next 26 months, said Frank Foster, who joined the firm as its vice president of marketing and sales for the Asia/Pacific region at the beginning of this year. Oakwood's new property in Tokyo—which features high-speed Internet, plasma televisions, steam showers and private balconies—is its first luxury property in Japan, according to the company.

The growth is necessary to meet an enhanced interest in corporate housing as an alternative to hotels, Foster said. "Demand has picked up tremendously," he said. "A lot of major corporations that have really just focused on hotels in their requests for proposals you now see asking for serviced apartments and long-term accommodations."

The Asia/Pacific region is of particular interest for growth, he said. There already are two projects earmarked in southern China, and Oakwood has plans to expand to other key locations including the Indian cities of Mumbai, Bangalore, Chennai and Pune.

"Multinational corporations are relocating senior executives for projects with middle to long periods, so they need to have this accommodation," Foster said. "Also, a number of relocation companies have established themselves in key markets, especially when looking at developing countries such as India or China."

Oakwood has more than 20,000 apartments throughout North America, Europe and Asia. In the Asia/Pacific region, it currently features three brands. The Oakwood Premiere brand, which includes the recently opened Tokyo property, caters to senior executives with amenities including daily housekeeping and room service, and properties are planned for China, India, Indonesia and Thailand. The Oakwood Residences brand is geared toward business travelers who are relocating with family for long assignments, with properties being added in Beijing and Bangalore. The third brand, Oakwood Apartments, features modern-style apartments in central locations aimed toward younger business travelers.

In addition to growing those brands, Foster said Oakwood has plans to introduce a resorts brand that will feature furnished residences and villas in exotic locations.

"We don't compromise in terms of quality of product or service," Foster said. "A lot is happening, especially with this recent property, our ninth in Japan. It's extremely exciting and stimulating further growth."

Prior to his new position, Foster had worked predominantly with international chains in the region, including Le Meridien Hotels & Resorts, Shangri-La Hotels and Resorts and Radisson Hotels Worldwide. He also helped develop and deploy a rebranding strategy for Meritus Hotels & Resorts, which resulted in a 73 percent increase in central delivered revenues.

"It was a great opportunity," Foster said of the Oakwood appointment. "Obviously, there's a huge focus on development in the region."