MARKET & FEASIBILITY REPORTS
A large number of property companies and landlords have now identified the benefits of having serviced apartments within their existing property portfolios. Most of these companies will have some experience of property development and/or leasing in the residential sector, but little or no prior knowledge of the hospitality sector. Saxbury is regularly asked to assist these clients in identifying how they can use their current assets, or acquire others, in order to add serviced apartments to their portfolios.
Before embarking on these kinds of projects, it is essential that our clients understand the trading environment and other conditions of the serviced apartment market in their chosen area. A thorough understanding of the risks and rewards is required, as well as the alternative investment opportunities that they could utilise instead. Without this in-depth level of knowledge, the investor or developer is unlikely to be able to create optimum value from their assets.
In order to help our clients achieve this goal, Saxbury provides them with bespoke market intelligence reports that pull the sector into focus by analysing the risks and rewards of setting up this kind of venture. These reports cover several key areas. First, they provide a detailed insight into the residential, hotel and Airbnb markets in the area identified, alongside a comprehensive list of the supply, demand and pipeline of each market. This helps to evaluate the competition and determine whether the market is undersupplied, presents good opportunities, or is oversaturated. Secondly, Saxbury provides an analysis of serviced apartment trading metrics applicable to the chosen area, including achievable average daily rates (ADRs), occupancy levels, and revenue per available room (RevPAR).