Serviced Apartment Industry in Istanbul

Istanbul Turkey Apartments blog provides some unorganized text taken out of a business plan prepared for investment funds interested in creating a branded serviced apartment chain in Turkey. It is basically about the serviced apartment industy in Istanbul.

The text is interesting in some ways; not only because most of the concepts outlined are specific for Turkey, they can probably be apllied anywhere in the world. Marketing concepts are creative but not specific to Turkey. The data about the competition in the market is deleted along with most other parts of the plan.

The growth timeline is the only part of the business plan that gives an idea of what is possible in the serviced apartment industry in Turkey. Unique selling point is very interesting where it suggests upholding the principles of hygiene, safety and hi-tech equipment.

It is completely true that the serviced apartment industry in Istanbul and Turkey is under-penetrated and presents an early-mover advantage. A good investment and property manager with local experience can work together with foreign investors to develop and manage property investment portfolios with limited downsides and significant profit potential. 60 months is also a very reasonable period not only to create the leading serviced apartments brand in Turkey but also to build enough brand recognition to obtain the highest possible valuation during the exit.

I'd also like to note soem of the several problems with the current competitors making the investment idea a homerun for newcomers;

Most of the competitors in the market suffer from low capitalization and have limited number of units under management. Of those, who have easy access to capital, they choose to remain in the high-end part of the industry which results in focusing on only a small part of the market that are high-income travelers seeking upscale accommodation options.

Some competitors have portfolios that are made up of smaller properties with generally 5 to 8 units in different locations owned by multiple landlords. Targeting a limited type of travellers generally result in property managers to choose a part of the portfolio to focus on and increase the occupancy rates while other landlords suffer from low occupancy rates.

While there are no brands in the market with an established reputation for providing accommodation at multiple key locations and an expected level of services in all premises, there are several companies offering serviced apartments in limited quantities.

I am also confident that the serviced apartment industry in Istanbul and Turkey presents a great potential for foreign investors.