Serviced Apartments in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: August 2024
ANZSIC H4404Revenue
$6.1bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
21,060
Businesses
756
Wages
$X.Xbn
Serviced Apartments in Australia industry analysis
The Serviced Apartments industry has experienced significant volatility in recent years. The outbreak of the COVID-19 pandemic saw a drastic drop in occupancy rates because of international and domestic travel restrictions, posing a significant challenge to meeting fixed costs. Government stimulus like the JobKeeper payment scheme and strategic diversification of revenue sources helped businesses survive the pandemic years. Easing restrictions in 2022 saw a tourism revival, boosting occupancy rates and profit margins. Industry employment surged as establishments hired additional casual staff to meet rebounding demand. Pre-pandemic investments in new serviced apartments also facilitated growth in business numbers.
Trends and Insights
- Government stimulus measures and businesses’ diverse revenue streams ensured the Serviced Apartments industry's resilience in recent years. Returning international travel has boosted the luxury travel market, benefitting high-end serviced apartments.
- The resurgence of international travel has significantly boosted demand for luxury and upper-upscale serviced apartments in Australia. Luxury accommodations contribute to a large portion of overall revenue, thanks to their extensive amenities, higher pricing and strong demand from wealthy foreign tourists.
- Queensland, a premier tourist destination, hosts over half of Australia's serviced apartments, mainly offering budget-friendly options for holidaymakers. Despite the high number of establishments, intense price competition leads to a proportionately lower revenue share.
- Competition is high, mirroring the intensity in the broader accommodation sector. The combination of low entry barriers and the rising influence of disruptive services like Airbnb has amplified the industry’s internal and external competition.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 7.6 % over the past five years, to reach an estimated $6.1bn in 2024.
Trends and Insights
A tourism rebound is boosting occupancy and profit margins for serviced apartments
- The COVID-19 outbreak led to a drastic drop in occupancy rates at serviced apartments, primarily because of the closure of international borders from March 2020 to February 2022. Domestic travel limitations, like lockdowns, also added disruptions to demand.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Record tourist numbers and rising household income are set to drive industry growth
- The Serviced Apartments industry is poised for growth in the upcoming years as the total number of tourists is expected to meet and surpass pre-pandemic levels, either in 2024-25 or in early 2025-26. Enhanced demand will pave the way for new entrants, leading to a hike in the number of enterprises and establishments.
Biggest companies in the Serviced Apartments in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
Accor Asia Pacific | 881.3 | |
QSA | 468.4 | |
Oaks Hotels Australia | 275.5 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Food and beverages, Other products and services and Upscale and upper midscale accommodation. Food and beverages is the largest segment of the Serviced Apartments in Australia.
Trends and Insights
A return to status quo has eaten into upscale and upper midscale accommodation’s revenue share
- Most serviced apartments lie in the upscale and upper midscale range, with roughly half of the options in Australia classified as such.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Hotels and Resorts in Australia
- Motels in Australia
- Caravan Parks, Holiday Houses and Other Accommodation in Australia
Complementors
- Tourism in Australia
International industries
- Hotels & Motels in the US
- Hotels & Motels in Canada
- Motels, Hostels and Holiday Parks in New Zealand
- Holiday Accommodation in the UK
- Hotels in China
Table of Contents
About this industry
Industry definition
The industry comprises enterprises 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 often cheaper than equivalent hotel rooms as they have fewer complex facilities and provide fewer daily services.
What's included in this industry?
Upscale and upper midscale accommodationLuxury and upper upscale accommodationMidscale and economy accommodationFood and beveragesFunction rooms and recreational facilitiesBabysitting and laundry servicesCompanies
Accor Asia PacificQSAOaks Hotels AustraliaPurchase this report to view all 3 major companies in this industry.
Related Terms
TARIFFMANAGEMENT AGREEMENTOCCUPANCY RATEIndustry Code
ANZSIC 4400 - Serviced Apartments in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Government stimulus measures and businesses’ diverse revenue streams ensured the Serviced Apartments industry's resilience in recent years. Returning international travel has...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The resurgence of international travel has significantly boosted demand for luxury and upper-upscale serviced apartments in Australia. Luxury accommodations contribute to a l...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Queensland, a premier tourist destination, hosts over half of Australia's serviced apartments, mainly offering budget-friendly options for holidaymakers. Despite the high num...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition is high, mirroring the intensity in the broader accommodation sector. The combination of low entry barriers and the rising influence of disruptive services like A...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Quest Apartments' strategic focus on targeting corporate travellers and expanding to new locations has facilitated its growth over the past decade. A resurgence in business t...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Accor Asia Pacific's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of QSA's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Oaks Hotels Australia's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Accor Asia Pacific, and factors influencing its performance in the industry
- Description and key data for QSA, and factors influencing its performance in the industry
- Description and key data for Oaks Hotels Australia, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Continuing growth in international tourism is setting serviced apartment providers up for success. A spike in the number of international tourist visitor nights indicates hei...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins are set to remain elevated as high room tariffs remain sticky. Cost-cutting measures adopted during the pandemic are also contributing to lower expenses.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Serviced Apartments industry in Australia in 2024?
The market size of the Serviced Apartments industry in Australia is $6.1bn in 2024.
How many businesses are there in the Serviced Apartments in Australia industry in 2024?
There are 756 businesses in the Serviced Apartments industry in Australia, which has grown at a CAGR of 3.6 % between 2019 and 2024.
Has the Serviced Apartments industry in Australia grown or declined over the past 5 years?
The market size of the Serviced Apartments industry in Australia has been growing at a CAGR of 7.6 % between 2019 and 2024.
What is the forecast growth of the Serviced Apartments industry in Australia over the next 5 years?
Over the next five years, the Serviced Apartments industry in Australia is expected to grow.
What are the biggest companies in the Serviced Apartments market in Australia?
The biggest companies operating in the Serviced Apartments market in Australia are Accor Asia Pacific, QSA and Oaks Hotels Australia
What does the Serviced Apartments in Australia include?
Upscale and upper midscale accommodation and Luxury and upper upscale accommodation are part of the Serviced Apartments industry.
Which companies have the highest market share in the Serviced Apartments in Australia?
The company holding the most market share in Australia is Accor Asia Pacific.
How competitive is the Serviced Apartments industry in Australia?
The level of competition is high and increasing in the Serviced Apartments industry in Australia.
