The growth of business travelling around the world, especially in Australia, is a good sign to invest in different types of accommodation. If you think that hotels and resorts are too much for your budget, why not go for a serviced apartment. This hotel-like accommodation offers the same facilities and services, but is less costly, which many long-term business travellers find beneficial.
To help you in understanding this investment venture, brokers like Resort Brokers Australia and property info sites like Property Observer have listed the following:
High Occupancy Rate
Many business travelers today have changed their accommodation preferences, as they want a space that offers more freedom, privacy, and space for a lower price. They want a flexible yet comfortable environment to work and possibly spend time with their family.
Serviced apartments are similar to hotels, so guests have the chance to enjoy shared facilities like gyms and swimming pools, housekeeping services, soft furnishings, and a fully equipped kitchen and laundry. It’s possible to focus on a specific market, as well. All you need is to add unique facilities and services.
Business Travel on the Rise
Australian financial services advisor Atchison Consultants revealed in their review that serviced apartments might outperform hotels with forecasting returns of up to 15% per year. They added that this sector has an advantage because it’s the nearest competitor in terms of corporate accommodation. It has a fixed rental income with long-term lease, making it appealing to investors. IBISWorld noted that the estimated value of serviced apartments is $8 billion, as of 2011. This includes 1,300 establishments and 1,200 operators, which employed about 16,000 people.
Serviced apartments can be a cost-effective and convenient invest option for accommodations. As many people tend to travel locally and overseas for business, you’re likely to grab a profitable market. All you have to do is find a property broker to provide your needs.