Industry Analysis & Industry Trends
The Serviced Apartments industry has grown strongly over the past five years. The industry has steadily drawn market share away from other operators in the Accommodation subdivision such as hotels and motels, which have struggled with fluctuating levels of domestic travel, a high Australian dollar over much of the period and global economic uncertainty. The industry's strong growth is due to the generally low prices charged by providers, and serviced apartments' greater offerings of in-room facilities and privacy compared with other accommodation. These factors make serviced apartments more attractive to guests. As a result, in the five years through 2015-16, industry revenue is expected to increase by an annualised 5.8% to $3.0 billion, with 5.6% growth anticipated in the current year... purchase to read more
Industry Report - Industry Investment Chapter
The Serviced Apartment industry exhibits a moderate level of capital intensity. The industry requires high levels of face-to-face service in all areas of operation, from management through to a range of front-of-house and back-end activities, including cleaning and maintenance. However, compared with hotels, motels and resorts, serviced apartments require relatively less labour as rooms are serviced less frequently and many serviced apartments do not have on-site restaurants (which are typically labour-intensive).
As a result, IBISWorld estimates that for every dollar paid as wages, operators are required to invest $0.26 in capital... purchase to read more