Posted on May 7, 2023

As the hospitality industry evolves, service accommodations are emerging as the new face of property investment. With its focus on short-term rentals and flexible, personalised service, serviced accommodation provides a lucrative investment opportunity for property owners who are looking to generate steady income streams. In this post, we will explore why serviced apartments are the future of property investment and how you can take advantage of this growing trend to maximise your returns.

What is "service accommodation"?

Service accommodation is a type of short-term rental that has become increasingly popular in recent years. It offers guests the privacy, comfort, and convenience of a home away from home, making it an attractive alternative to traditional hotels. Service accommodations are typically furnished properties that are rented out on a short-term basis to travellers, business executives, and others who require temporary housing.

The range of service accommodations available is extensive and can include fully furnished apartments, villas, condos, and vacation homes. This wide range of options allows guests to choose accommodations that suit their individual needs and preferences. Additionally, service accommodations can provide guests with a more personalised and unique experience than traditional hotels, leading to higher guest satisfaction and repeat business.

Service accommodations are also an attractive investment opportunity for property owners. With their high demand for short-term rentals and potential for higher rental yields, service accommodations can provide a stable and reliable income stream. Additionally, the flexibility and control that service accommodations provide make them an ideal investment option for property owners who are looking to optimise their returns based on market conditions.

In summary, service accommodation is a type of short-term rental that offers guests the privacy, comfort, and convenience of a home away from home. With their wide range of options and personalised guest experiences, service accommodations are becoming an increasingly popular alternative to traditional hotels. For property owners, service accommodations can offer a lucrative investment opportunity with high rental yields and flexible rental options.

Why is serviced accommodation the future of property investment?

High Demand for Short-term Rentals

The rise of online booking platforms like Airbnb and Booking.com has revolutionised the hospitality industry. Today, more and more people are choosing to rent serviced accommodations for their travels rather than booking traditional hotels. This growing demand for short-term rentals has made serviced accommodations a highly attractive investment opportunity for property owners.

Higher Rental Yields

Serviced accommodations can offer higher rental yields than traditional long-term rentals. Since short-term rentals can command higher rates, property owners can generate more income from their properties by renting them out on a short-term basis.

Flexibility and Control

Serviced apartments give property owners greater flexibility and control over their investments. Unlike traditional long-term rentals, which require long-term leases and commitments, service accommodations can be rented out on a nightly or weekly basis. This allows property owners to adjust their rental rates and occupancy levels more frequently, allowing them to optimise their returns based on market conditions.

Personalization and Unique Guest Experiences

Serviced accommodations provide guests with a more personalised and unique experience than traditional hotels. This can result in higher guest satisfaction, better reviews, and repeat business. As a result, serviced accommodations can offer a more sustainable and stable income stream for property owners.

Why Location is Key for Service Accommodation Investment

Location is a critical factor to consider when investing in service accommodations. Properties located in prime locations, such as near tourist attractions, business districts, and transportation hubs, can command higher rental rates and occupancy levels. Additionally, properties located in areas with high demand for short-term rentals can generate steady income streams and provide a more reliable return on investment.

When choosing a location for service accommodation investment, it's essential to consider factors such as accessibility, safety, and local amenities. Properties located in areas with good transportation links, such as near airports, train stations, or bus terminals, can be highly attractive to guests. Properties located in safe and secure neighbourhoods with access to shops, restaurants, and other amenities can also be highly attractive to guests, leading to higher occupancy levels and rental yields.

Why Service Accommodation is a Safe Investment Option During Uncertain Times

Serviced housing has proven to be a stable and reliable investment option, even during times of uncertainty. The COVID-19 pandemic has had a profound impact on the hospitality industry, with traditional hotels and resorts struggling to stay afloat. However, service accommodations have been less affected by the pandemic due to their focus on short-term rentals and unique, personalised guest experiences.

Additionally, service accommodations have shown resilience in times of economic uncertainty. During economic downturns, many people choose to cut back on their travel budgets, leading to lower occupancy rates and rental yields for traditional hotels. However, service accommodations can offer a more cost-effective alternative, allowing travellers to enjoy a comfortable and affordable stay without breaking the bank. As a result, serviced apartments can provide a more stable and reliable income stream for property owners during times of uncertainty.

Furthermore, serviced apartments can be adapted to changing market conditions, making them a highly adaptable investment option. During times of economic downturns, for example, property owners can adjust their rental rates and occupancy levels to attract more guests and generate more income. They can also switch their focus to longer-term rentals if short-term demand is low.

Conclusion

Serviced accommodation is the future of property investment, offering high rental yields, flexibility, and unique guest experiences. With its growing demand for short-term rentals, personalised service, and adaptable nature, serviced accommodation provides an attractive investment opportunity for property owners who are looking to maximise their returns without the need for tenants.

If you're considering investing in serviced accommodation, it's essential to consider factors such as location, safety, and local amenities. At Spectrum Consult Property Ltd., we specialise in property management for service accommodations and can help you find the perfect investment property for your needs. Contact us today at [email protected] to learn more about how we can help you take advantage of this exciting investment opportunity.