If you’re considering becoming an accommodation provider – or selling your established accommodation business – now is an excellent time, with national research revealing some very encouraging statistics.
From hotels, motels and resorts, to serviced apartments and hostels, Australia’s accommodation industry is showing steady and continued growth. This is in line with increased consumer confidence – due to the low interest rates – and a resurgence in the popularity of Australia as a holiday destination.
Strong Demand From Domestic Market
Revenue throughout the accommodation industry is increasing due to strong demand from domestic visitors, as well as growth in international arrivals, particularly from the Asia-Pacific region. Industry revenue is expected to grow by 2.7% per year over the next five years, to reach $7.9 million (IBISWorld).
For many buyers, an accommodation business provides an opportunity for a complete lifestyle change. It’s a chance to work for yourself, set your own hours and reap the rewards accordingly. Often it also enables the investor to achieve that much-talked about sea-change.
Lifestyle Or Nest Egg
The type of accommodation business you choose depends on what you are hoping to achieve. If you are seeking a slower-paced lifestyle business that you can run with your partner, you might consider a Bed & Breakfast establishment, a small motel, a small caravan park, or hostel.
If, on the other hand, you want to work long and hard for a set number of years, to achieve the maximum profit and on-sale price, you’re probably looking at a much larger operation. In which case you will need to take into account hiring staff.
Serviced Apartments On Trend
Serviced apartments are a very smart investment right now. Not only has the demand increased substantially, but they are super easy to manage and you don’t need to live onsite.
If you can, buy several serviced apartments in the same block. That way you will only pay one lot of body corporate or other service fees, and grounds maintenance will probably be included. If you wish to be hands-on, you can clean and service the apartments yourself between bookings, or simply engage a casual cleaner.
The Perfect Family Business
For families, a holiday park offering camping, caravan sites and perhaps cabins is a great investment. Many come with onsite owner/manager’s residences, so it also provides you with a home. Upkeep and cleaning is fairly minimal and, again, can be covered by casuals or contractors.
It’s a great way of getting the kids involved in the family business and, of course, they get to enjoy park facilities, such as swimming pools, BBQs and playgrounds.
Diversification Is The Key
Whilst becoming an accommodation provider offers many advantages, it is also important to be realistic. Depending on the size and nature of the establishment, it can be very hard work. In addition, your income may be seasonal.
There are, however, ways around the seasonal nature of some accommodation businesses. Caravan parks can open their doors to permanents, whilst motels can be marketed for corporate functions and private events.
A B&B set amongst magnificent gardens can be utilised as a wedding venue, subject to local laws and licences.
If you are selling an accommodation business, excellent presentation is crucial, along with up-to-date books and statistics. Ensure everything is up to scratch, or sell as an ongoing project at a lower price.
Sell your commercial property or business privately without business brokers. We advertise your business for sale or real estate listing in our go-to website, national glossy Coast to Coast Magazine and major real estate websites reaching many motivated buyers. Call now to sell your business or property 1300 793 792 or email [email protected].