The serviced accommodation business has picked up in the last couple of years with 2025 being the optimal year to join the industry. The idea of accommodation with both home-like warmth and hotel services is capturing much attention from travelers. Whether it is leisure, work, or remote travel, serviced accommodations provide a unique and expandable business model.

Starting any kind of serviced accommodation business can be intimidating for many people but it can also be one of the satisfying business endeavors when done correctly. From selecting suitable accommodations to providing guests with exceptional services, there are methods to strategies against all odds. In this article, you will learn Step by step-by-step approach for entry into the somewhat complex yet promising business of serviced accommodation.

What is a Serviced Accommodation Business?

Serviced accommodation includes residences and apartments, which are fully furnished, and available for short, medium, or long-term leasing or renting. These types of places usually provide services like internet and TV, laundry, and even a fully equipped kitchenette, providing the best of both worlds, a house atmosphere with full service of the hotel amenities.

Why Start a Serviced Accommodation Business in 2025?

Rapid Change In Demand: There is a predicted growth in demand for short-term rentals as there are an influx of remote workers, digital nomads, and vacationers looking for such options.

Investment Potential: With the right management: serviced accommodation facilities have been known to provide better returns than standard rental facilities.

Easily Expandable: You can begin with just one property and increase the number as you learn the ropes of the business.

How To Develop A Business of Serviced Accommodation: A Comprehensive Guide

1. Conduct Market Research

Don’t just jump. Walk through this segment first. Who are your prospective customers? Target some potential guest segments (E.g., Business professionals, leisure visitors, citizen guests). Know the local competitors, how much they charge, what kind of services they offer and do they get any reviews.

Identify demand trends in your target area using a relevant tool such as AirDNA or Mashvisor.

Pro Tip: Target regions that are some distance away from areas where the booking agency has the majority so that your bookings can be consistent.

2. Create a Business Plan

Having a coherent business plan makes it more likely that your business will succeed. In preparing this, pay attention to the following:

Mission Statement: State what you intend to achieve and the principles that you stand for.

Budget: Prepare a list of expenses that will be incurred at the start (cost of land, buying furniture, advertisement) and those that will be regular (running costs).

Revenue Projections: Remember to project the expected income bearing in mind the average occupancy levels and the prevailing rates.

Growth Strategy: Make a detailed plan explaining how the development of the business will take place over the years.

3. Choose the Right Property

The most appropriate property to use in a business can bring guests into the establishment:

Look for properties where the business is located in areas of major demand especially areas where short-term rentals are in high demand.

Look for properties that have the appropriate design, size, and other rights that suit the particular market.

Consider the main properties for their level management and the probable high return on investment.

4. Understand Legal and Regulatory Requirements

You must ensure compliance with requirements when operating a business of the serviced accommodation type.

• Licenses and Permits: Investigate the relevant legislation that applies to the offering of short-term rentals.
• Insurance: Go for insurance coverage for damaged property and injuries accrued plus loss of revenue.
• Taxes: Get to know your tax responsibilities such as the corporate tax and value-added tax (VAT).

5. Furnish and Equip Your Property

No matter how great your Marketing skills are, first appearances will always matter! Make sure you put your money in good furnishings and amenities:

Cozy beds, clean sheets, and furniture that is well-designed and attractive.

Foundational Equipment, including a microwave, coffee-making equipment, and a washing machine.

Additional features include high-speed WiFi, a smart TV, toiletries, etc.

Please include some snacks and drinks along with a city guide in a welcome pack for your guests to enjoy.

6. List Your Property on Booking Platforms

Make the most of your property by listing it on well-known booking sites:

• Airbnb
• Booking.com
• Vrbo
• Expedia

Make sure your listing has:

• Clear photographs of high quality.
• Elaborate the statement of property listing.
• The prices are fair for the market condition.

7. Set Up a Booking Management System

Managing bookings, in particular cancelations and amendments, in a seamless manner is crucial:

• Use Property Management Systems like Guesty, Hostaway, or Tokeet to automate reservations, pricing, and communication.
• Avoid double bookings by synchronizing calendars across systems.

8. Market Your Business

Apart from listing websites, you can also make use of extra marketing methods:

• Social marketing: Promote and highlight parties about your properties on Instagram, Facebook, and TikTok.
• Google My Business: Make necessary changes to help promote your business locally.
• Website: Create a website where potential clients can see your properties and make bookings without intermediaries.

To have all-year-round occupancy, advertise during the non-peak seasons.

9. Deliver Exceptional Guest Experiences

Happy guests lead to positive reviews and repeat bookings. Focus on:

• Prompt and friendly communication.
• Cleanliness and attention to detail.
• Personal touches like customized welcome notes or free upgrades.

Use feedback to continuously improve your offerings.

Challenges to Consider When Starting a Serviced Accommodation Business

• Seasonal Variation: The level of demand may differ at various points of the year.
• Change of Laws: There may be new regulations that can affect the nature of your business.
• Complexity in Operations: A large volume of properties that need to be managed means that organization and systems are a prerequisite.

Invest in multiple properties in different regions to spread and mitigate adverse effects.

Conclusion

In the year 2025, starting a serviced accommodation business goes beyond the normal business opportunity; it presents an opportunity to create such experiences for travelers and at the same time earn an income that is fascinating and very flexible. Increased growth and expansion of the industry means that the ability to change, invent, and provide good services will be the breadwinners of the businesses.

If you follow this guide, you will be able to avoid the pitfalls that claim the novice in the serviced accommodation market. Every aspect of the operation from the preparation to the excitement of the guests should be quite precise, as all the details matter.

Are you looking forward to starting on the servicing discomforting accommodation journey? If yes, do not hesitate, today is the day to get to that first step in realizing your dreams of a serviced accommodation business. Drop your ideas or queries in the comments section below and we will be more than happy to assist you