Australian hotels are now at the top of the ‘most wanted’ list for Chinese investors, with over a quarter of hotels on the market being snapped up by offshore investors.
The sharp decline in the Australian dollar has made for an aggressive buying spree on the part of Chinese buyers, taking 28 per cent of the market share in 2014 alone.
The sales accounted for a massive $2.75 billion across both Australia and New Zealand,
JLL figures show.
This figure, however, comes as no surprise, as the decline in the Australian dollar was expected to fuel Chinese investors increased activity in the market.
JLL Hotels and Hospitality Managing Director of Investment Sales, Mark Durran, says it is likely Chinese investment will continue this year and could account for up to 50 per cent of hotel transactions in 2015.
“There is no doubt that Queensland, both Brisbane, and in areas like the Gold Coast and Cairns, offer some quality hotel assets,” Mr Durran said.
Industry research has regularly predicted Queensland hotels as a huge target for Chinese investors.
“I wouldn’t be surprised to see a number of regional transactions go through and around Australia in 2015.
“For a number of years, since the GFC, the market has been in decline, but now we are seeing a combination of foreign investors, high net-worth individuals and hotel operators becoming active again.”
Despite this, the majority of hotel sales are still going to keen Australian investors who are after high-quality hotel assets.
According to JLL, domestic investment was at 22 per cent in 2013, increasing to 46 per cent in 2014.
