Industry Analysis & Industry Trends
The Serviced Apartments industry has been the steadiest 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 2014-15, IBISWorld expects industry revenue to increase by an annualised 2.3% to $3.0 billion.
While the Serviced Apartments industry is well placed among accommodation service providers, it has had to contend with a strong Australian dollar and cheap international airfares for much of the past five years. These factors have been driving Australian tourists overseas at the expense of the domestic tourism market... purchase to read more
Industry Report - Starting a New Business Chapter
The Serviced Apartment industry is expected to exhibit medium levels of barriers to entry. Barriers to entry for the industry are largely dictated by the planned operating structure of potential entrants. Serviced apartments have become increasingly popular as investment properties over the past decade 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 price. Australia's strata title framework facilitates this operating structure, allowing multiple property owners to pool their investments and then run the property as a serviced apartment... purchase to read more