Corporate Travelers Fuel the Serviced Apartment Sector in Australia
Despite the reports of an economic downturn, the serviced apartment sector in Australia expects the competitive pricing offered to corporate travelers to fuel the growth of the industry. The serviced apartment industry is currently worth $2.2 billion in Australia which is an increase from $1.5 billion in 2005.
According to Allan Vidor, managing director of Toga Group, the additional space that is offered with serviced apartments coupled with five-star amenities for less than hotel price, make serviced apartments the preferred option for short and long term housing. The growth is driven by corporate traveler preferences for the more flexibile lifestyle that is possible with serviced apartment living.
Toga owns the Medina serviced apartment group as well as the Vibe and Travelodge hotels.
The serviced apartment industry in Australia has increased at an average of 6.3 percent annually with hotel revenue growth trailing at an increase of only 4.7 percent. For the year 2009 the revenue growth for serviced apartments is expected to be at 3.9 percent with the hotels trailing at a three percent increase.
New serviced apartment properties are being established throughout Australia due to the fact that developers find them easier to finance and construct than hotel properties. Additionally, serviced apartments are usually established in prime locations and the developers can contract for serviced apartment management which creates attractive packages for investors.
IBIS World Business Information predicts the serviced apartment industry will face a difficult year, however, the industry is recession resilient and will remain strong during the next five years. Corporate client prefer these accommodations over a single hotel room with expensive amenities.
Stella Group is currently the largest serviced apartment operator in Australia with 15,000 units under management and 143 serviced apartment properties throughout Australia with 13 properties in New Zealand. The company recently purchased Outrigger and Seville chains and open a 330 unit serviced apartment building in Darwin.
Additional information on serviced apartment accommodations in Australia can be obtained from Move and Stay at www.moveandstay.com.au .
According to Allan Vidor, managing director of Toga Group, the additional space that is offered with serviced apartments coupled with five-star amenities for less than hotel price, make serviced apartments the preferred option for short and long term housing. The growth is driven by corporate traveler preferences for the more flexibile lifestyle that is possible with serviced apartment living.
Toga owns the Medina serviced apartment group as well as the Vibe and Travelodge hotels.
The serviced apartment industry in Australia has increased at an average of 6.3 percent annually with hotel revenue growth trailing at an increase of only 4.7 percent. For the year 2009 the revenue growth for serviced apartments is expected to be at 3.9 percent with the hotels trailing at a three percent increase.
New serviced apartment properties are being established throughout Australia due to the fact that developers find them easier to finance and construct than hotel properties. Additionally, serviced apartments are usually established in prime locations and the developers can contract for serviced apartment management which creates attractive packages for investors.
IBIS World Business Information predicts the serviced apartment industry will face a difficult year, however, the industry is recession resilient and will remain strong during the next five years. Corporate client prefer these accommodations over a single hotel room with expensive amenities.
Stella Group is currently the largest serviced apartment operator in Australia with 15,000 units under management and 143 serviced apartment properties throughout Australia with 13 properties in New Zealand. The company recently purchased Outrigger and Seville chains and open a 330 unit serviced apartment building in Darwin.
Additional information on serviced apartment accommodations in Australia can be obtained from Move and Stay at www.moveandstay.com.au .
Labels: Australia accommodations, serviced apartment, Stella Group
Posted by Moveandstay
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