Industry Analysis & Industry Trends
The Serviced Apartments industry has been the strongest performer in the Accommodation subdivision over the past decade. Other accommodation providers, including hotels and motels, have struggled in the wake of declining domestic tourism, a high Australian dollar and global economic uncertainty. In the five years through 2013-14, IBISWorld expects revenue will increase by an annualised 3.1% to $3.0 billion.
While the Serviced Apartment industry is strongly placed among accommodation service providers, the industry has battled a strong Australian dollar and cheap international airfares for much of the past five years... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry for the industry depend on the planned operating structure of potential entrants. Serviced apartments have become popular as investment properties over the past 10 years, as individual investors seek to gain a steady income stream from properties. A management company, hired to run the property, will usually offer a rental guarantee for a set number of years at a set percentage of the investor's purchase. Australia's strata title framework facilitates this operating structure, allowing multiple property owners to pool their investments and then run the property as serviced apartments. The barriers to entry for this operating structure are low to non-existent... purchase to read more