Hotel transactions rebound as travel takes off

RESEARCH

AUSTRALIAN hotel sales hit $2.14 billion in 2022 – the second-highest transaction volume on record – are tipped to hit a similar figure this year as...

Those drivers will cushion the impact of higher credit-funding costs, according to CBRE’s Hotels Overview and Outlook report.

Significant additional equity capital remains on the sidelines waiting for signs of interest rates and inflation to stabilise; while inflation is...

Recovering occupancies and strong growth in average daily rates (ADR) assisted in insulating the hotels sector from...

CBRE’s Australian head of hotels research, Ally McDade said an expected stabilising of conditions as the year unfolds should see capital markets benefit from...

“While a high inflation and interest rate environment will place upward pressure on yields and IRR expectations, improving tourism demand fundamentals and...

Last year’s hotel sales tally tracked 53 deals valued at over $10 million – a record number that was 39% above the 10-year average – headlined by...

Momentum has carried into early 2023 with Fiveight, the property arm of mining billionaire Andrew Forrest and wife Nicola’s investment vehicle Tattarang...

ADR rates will rise again in 2023, after a 24% jump in 2022 to $228, outpacing 2019 rates by 23%. Occupancy averaged 65% nationally, 10% shy of pre-pandemic levels.

CBRE expects AFR growth will moderate this year as operators maintain strong rate policies in favour of returning to pre-pandemic occupancy levels.

Domestic travel continues to drive the Australian tourism industry, even with a recovery in Australians departing for overseas holidays. Domestic travel nights are...

“This is benefitting Australia’s gateway cities of Sydney and Melbourne, which recorded the strongest year-on-year growth rates in...

Occupancy levels in domestic demand-dominated cities are expected to edge upwards from already strong levels...

Sydney and Melbourne should continue to see occupancy gains in 2023 as inbound demand recovers, Craig said.

Short-term overseas arrivals remain 40% below pre-pandemic levels, but the reopening of China’s borders would play a major role in a recovery.

The Australian hotel market’s expansionary phase is set to peak in the next 12 months, with around 8,400 rooms set to be delivered across the country’s major hotel markets in...

“Following this wave of additions, higher debt and construction costs are anticipated to suppress the hotel development pipeline being...

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