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 Key Buyers Chapter
The Serviced Apartments industry exhibits a low level of market share concentration, with IBISWorld forecasting that the industry's top four players collectively account for less than 40% of industry revenue. While there are many large chains that operate and manage a significant number of rooms through lease agreements, these operators earn comparatively less revenue than owner-operators. Owner-operators are typically independent establishments that earn more revenue than leased serviced apartment operators, who also tend to pay lease and/or franchise fees.
Market share concentration is expected to increase slightly over the next five years... purchase to read more