Serviced Apartments in Australia - Industry Market Research Report

Serviced Apartments in Australia - Industry Market Research Report

Serviced Apartments in Australia

Operators in the Serviced Apartments industry have faced significant disruption over recent years, as COVID-19 restrictions collapsed domestic and international tourist activity in Australia. From March 2020 to February 2022, Australia's international border was shut and international tourist activity plummeted. Domestic restrictions, including extended city-wide lockdowns and state border closures, also disrupted demand from domestic tourists. Business travel declined sharply, as many businesses shifted to online meeting platforms, like Microsoft Teams, rather than travelling for meetings. Occupancy rates at serviced apartments fell sharply in 2019-20 and 2020-21, eroding industry-wide profit margins. Overall, revenue has fallen at an expected annualised 1.9% over the past five years, to $4.5 billion. This includes an anticipated surge in 2022-23 of 19.9%, as all travel restrictions were lifted and tourism activity boomed in Australia.

The industry comprises establishments that operate serviced apartments for short-term or long-term accommodation. Serviced apartments contain a kitchen or kitchenette and usually have separate lounge or dining facilities. Serviced apartments are generally cheaper than equivalent hotel rooms as they have fewer complex facilities and provide fewer daily services.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.