MyStay International, which is the proprietor of the Australian Homestay Network, appointed funding banking veteran Ed Slade who heads up education-focused Schoolhouse Solutions earlier this 12 months to rally curiosity within the homestay sector.
In 2023, MyStay International supplied rooms for some 11,750 college students, making it the nation’s largest homestay supplier. Additionally, gross revenues in 2023 had been A$40 million and grew 130.5% vs 2022, the corporate’s funds present.
“There is a global shortage of student accommodation, and homestay represents the quickest, most asset-light solution for the sector,” stated David Bycroft, founder.
MyStay, which has beforehand worked in the US, additionally hopes to broaden its market share throughout North America.
“We are often called the ‘Airbnb of student accommodation’ and we have thousands of students knocking on our door to find rooms, as well as families that want to rent out their spare room.”
The advising agency, with experience masking Okay-12, edtech, recruitment, schooling property amongst others, has beforehand stated that investor curiosity in schooling infrastructure stays robust, regardless of rising rates of interest.
In its review of 2023, Schoolhouse Solutions famous that in 2024, pupil accommodation will stay in “very short supply” regardless of an anticipated resumption in improvement of latest builds and slowing pupil flows to the nation.
It additionally warned that universities registering working deficits may restrict funding for brand new campus infrastructure.
The paper additionally indicated that college students from South Asia, “who are the key target of visa crackdowns in the UK and Australia, tend to rent houses rather than e.g. homestay or PBSA”.
“Australia is a large market opportunity for us, as there are over 900,000 students in Australia but only 80,000 beds in purpose-built student accommodation,” Bycroft added.
“As an asset-light business with a scalable platform, we can grow bigger and faster than any PBSA company.”
PBSA is “not a viable solution” for present pupil calls for, he added, highlighting the price of land and constructing means “investors will be seeking much higher rentals than students have ever paid in the past for any new PBSA”.
“Current demand has already lifted the cost of PBSA significantly. This puts it out of the reach of most students,” he advised The PIE. “Homestay/hosted accommodation has been overlooked.”
With NEAS introducing requirements for homestay suppliers in 2023 – which stakeholders hope will boost consumer confidence – homestay is anticipated to “become a robust, value alternative to PBSA as accommodation remains tight, standards are raised and student rental costs remain low”, the Schoolhouse Solutions report added.
MyStay was the primary recognised, government-sanctioned supplier of homestay beneath the brand new NEAS homestay requirements.
Some 13 of the corporate’s high 15 buying and selling months since 2008 have occurred in both 2023 or up to April this 12 months, Bycroft stated, sharing particulars of buying and selling outcomes.
While MyStay International had been looking for an funding companion over the previous six months to quickly develop its enterprise in Australian and New Zealand, sudden fast development has slowed discussions, he detailed.
“We have had unprecedented interest from investors due to the accommodation crisis,” Bycroft advised The PIE.
“We plan to reopen these within the next 12 months when the data will show exceptional results for potential investors.”
“We have had unprecedented interest from investors due to the accommodation crisis”
The firm is focusing selling ‘hosted accommodation’ because the “only viable short to medium term solution for international student accommodation”, he continued.
“It is important we promote the term ‘hosted accommodation’ in conjunction with homestay as much of the over 18-year market is under the misapprehension that homestay is for under 18’s only. 66% of the international students that we manage accommodation for are over 18.”
Both business and authorities want to collaborate to regulate hosted accommodation suppliers and guarantee incentives, reminiscent of tax credit, can be found for these internet hosting worldwide college students via endorsed suppliers.
“International pupil accommodation is an issue that may simply and shortly be solved if the business and authorities work collectively to promote correctly managed, requirements primarily based hosted accommodation as the answer.
“Compliance is becoming a bigger part of our sector, and standards require thorough background checks, insurance coverage and student wellbeing. Our software capability manages and tracks compliance efficiently while allowing rapid growth,” Bycroft concluded.