Leveraging Market Insights for Strategic Growth
The serviced accommodation sector is evolving rapidly, driven by changing corporate needs, technological advancements, and sustainability imperatives. The Global Serviced Apartment Industry Report 2024 (GSAIR) provides comprehensive insights into these trends. This article delves into the key findings of the report and their implications for serviced accommodation ownership in Newcastle and the North East.
Market Trends and Insights
Shifting Corporate Demand
The GSAIR 2024 report reveals significant shifts in corporate demand for serviced apartments. Corporate usage for business travel has decreased from 73.68% in 2023 to 62.5% in 2024. However, there is a notable increase in the use of serviced apartments for assignment or project work, rising from 57.89% to 62.5%. This trend indicates a growing preference for longer stays and more stable occupancy rates, which is advantageous for investors.
Implications for Newcastle and the North East
Newcastle and the North East, with their growing business hubs and project-based industries, can capitalise on this trend. By focusing on long-term corporate contracts and project-based accommodations, property owners can ensure steady occupancy and revenue streams.
Technological Advancements and Challenges
The report underscores the importance of technology in maintaining competitiveness. Legacy booking systems and a lack of online availability are significant barriers. There is a pressing need for upgraded technology, including AI integration, to streamline booking processes and enhance the customer experience.
Implications for Newcastle and the North East
Investors in this region should prioritise technological upgrades. Implementing advanced property management systems and AI-driven booking platforms can attract tech-savvy corporate clients and improve operational efficiency.
Sustainability and ESG Considerations
Sustainability is becoming a critical factor in corporate decision-making. The GSAIR 2024 notes that over half of corporates now require serviced apartment providers to evidence their sustainability credentials. This shift is driven by growing environmental concerns and regulatory pressures.
Implications for Newcastle and the North East
To remain competitive, property owners should integrate sustainable practices into their operations. This could include energy-efficient appliances, waste reduction programs, and eco-friendly certifications. Demonstrating a commitment to sustainability can attract environmentally conscious clients and meet corporate requirements.
Competitive Advantage and Market Positioning
The report indicates that serviced apartments have lost some competitive advantage over hotels, particularly in terms of cost. However, there is potential to regain this edge through collaboration, improved distribution technology, and a focus on niche markets.
Implications for Newcastle and the North East
Investors should explore unique value propositions, such as specialised serviced accommodation for specific industries like film, music, and sports, which are on the rise. Collaborating with local businesses and leveraging regional strengths can differentiate offerings in a competitive market.
Regulatory and Economic Challenges
Increased regulation and economic factors, such as rising interest rates and building costs, are impacting the development of new serviced apartments. This environment necessitates innovative approaches to property sourcing and development.
Implications for Newcastle and the North East
Navigating regulatory landscapes and economic pressures requires strategic planning. Investors should seek opportunities in emerging areas with growth potential and less stringent regulations. Adopting flexible and adaptive business models can mitigate risks and enhance profitability.
Serviced Accommodation Ownership Insights
The insights from the GSAIR 2024 present both challenges and opportunities for serviced accommodation ownership in Newcastle and the North East. By aligning with market trends, embracing technology, prioritising sustainability, and strategically positioning their properties, investors can maximise their returns in this dynamic sector.
Clarice Carr & Co: Your Serviced Accommodation Investment Partner
Clarice Carr & Co is uniquely positioned to help investors navigate this landscape. As professional property sourcers, project managers, and residential investment consultants, we offer tailored services to optimise your investment in serviced accommodation. Our expertise in market analysis, strategic sourcing, and project execution ensures that your properties meet the highest standards and achieve optimal returns.
Why Choose Clarice Carr & Co?
Comprehensive Market Insights:Â Leveraging the latest industry data and trends to inform investment strategies.
Expert Project Management:Â Ensuring timely and cost-effective project completion.
Sustainable Practices:Â Integrating eco-friendly solutions to meet corporate sustainability demands.
Customised Investment Solutions:Â Tailoring strategies to align with individual investor goals and regional opportunities.
Invest in serviced accommodation with confidence and strategic foresight. Partner with Clarice Carr & Co for unparalleled expertise and exceptional results.
Want to know more? Check out Serviced Accommodation on our website or get in touch.
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