By Chris Betros

Executive Impact Oct. 16, 2009 - 05:25AM JST ( 14 )

TOKYO —

Serviced apartments are becoming a much more attractive option than hotels for long-term guests. One of the leaders in the field is Oakwood, which pioneered the concept of serviced apartments in the 1960s. Today, Oakwood Asia Pacific manages serviced apartments for business and leisure travelers in China, India, Indonesia, Japan, South Korea, the Philippines and Thailand. An additional 23 properties are scheduled to open by 2013 in strategic locations across Asia Pacific.

In Tokyo, Oakwood has a total of 562 apartments in eight locations – Tokyo Midtown, Roppongi, Azabujuban, Aoyama, Akasaka, Shinjuku and Shirokane. There are three types of accommodation – Premier, Residences and Apartments.

Overseeing Oakwood’s operations in Tokyo is country manager Martin Fluck. Born in Kobe, Fluck spent his first 10 years in Kobe and then went to Switzerland. After completing his studies at a hotel school in Lausanne, Fluck came back to Japan and worked for the Hilton in Shinjuku and later in Nagoya. He followed that up with stints at a real estate company, the Four Seasons Bali project, the Park Hyatt in Tokyo, and in Vietnam for seven years. Fluck joined Oakwood Japan in 2001.

Japan Today editor Chris Betros visits Fluck at Oakwood Premier Tokyo Midtown to hear more.

What is Oakwood’s image in Japan?

First of all, the biggest problem is not everyone knows what serviced apartments are. Early on, most Japanese thought of serviced apartments as being like a guesthouse, dormitory or weekly mansion. However, those who do know us, recognize Oakwood as the premier international brand.

Tell us about your three brands.

The Premier brand here at Tokyo Midtown has 107 apartments and is our luxury flagship brand worldwide. It is very high class, with 24-hour reception and daily breakfast service. It’s very much like a 5-star hotel. The biggest Premier residence is 135-square-meter 3-bedroom unit, with rental costing 2.4 to 2.6 million yen per month. Our second brand is the Residences, which are more focused on families, with a high percentage of two or three bedrooms. The Apartments are for the contemporary young couples and singles, and are smaller and less expensive.

What are the advantages of staying in Oakwood’s serviced apartments?

It’s like living in your own home. You’ve got kitchens, more living space than a hotel, and in some properties there is a gym and residents’ lounges. Internet access is available in every apartment. Our service is very personal because we have time to get to know the guests. They are here for a few months versus a couple of nights for a hotel.

What is the minimum stay?

Thirty days for all properties. Some people here at Midtown extend year by year. Short stays tend to be project-related people, visiting executives and middle management, etc.

Who are your typical guests?

At Midtown, 50% are Japanese who are attracted to the posh, trendy new location. For many, it is not their main residence, even if they live in Tokyo. They use it as a 2nd or 3rd home. At other locations, 80-85% of guests tend to be foreigners, mainly connected to American-related companies.

How has the recession affected business?

The occupancy rate is down and people are staying for shorter periods. The drop has been felt more at the Apartments brand and we’ve offered discounts there of 5-10%. Occupancy continues to be good at our Roppongi 1-chome T-Cube and Azabujuban locations. Every property has a high number of repeat guests.

How optimistic are you?

We are confident of getting new business because there are a lot of M&As going on and this brings lawyers and consultants to Japan.

Do Japanese guests differ from foreign guests in their expectations?

Japanese guests are very demanding, but fair. They want good service, hygiene and security in the package. They are a bit reserved and may not come so often to the wine events that we host. The longer Japanese guests stay, the more feedback they will give you.

There are also differences in sales in the way we deal with a client. Sometimes, a guest may not like the carpet or color of the sofa, or if the room faces north, south or whatever. Feng shui is very important to some people. After all, this is their second home.

How often do you meet guests?

As often as I can. We have a weekly wine event here and that’s where I meet them. Sometimes, I can meet them at breakfast or when they check in. We have residence parties at all properties.

What is a typical day?

I start around 7 or 7:30 a.m. First, I check the operations and deal with emails, then look at reports, visit the properties for meetings with the GMs, meet sales staff, attend functions and so on. I am hands and on a little bit everywhere from checking finances to the coffee machines. As much as I can delegate, I do, but I am very particular on service.

Tell us about your staff.

I have a great staff. They are very professional and are happy to work in a Western-Japanese environment. Most are graduates from overseas and all speak excellent English.

Do you work seven days a week?

I used to, especially when we opened new properties. On Saturdays, I sometimes pop in and check the situation.

How do you like to relax?

I like to play squash, go to the movies, read and listen to music. I am terrible at taking holidays.

After 24 years in Japan, does anything still frustrate you?

Inflexibility and stubbornness still frustrate me.

For more information, visit www.oakwood.com