The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
UPCOMING EVENT - INDUSTRIAL AND LOGISTICS SUMMIT 16 OCTOBER, SYDNEY
INDUSTRIAL AND LOGISTICS SUMMIT - TICKETS NOW ON SALE
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
4
print
Print
HotelRenee McKeownTue 25 Feb 20

Fires, Virus to Drop Hotel Bookings 40pc

57fe8729-b94f-47b8-a52d-2ee7337437b4

The full force of the bushfires and coronavirus are yet to hit the hotel market with strong results recorded for 2019, according to Savills.

Bushfires could lead to a 40 per cent drop in bookings taking a marked toll on the on the $61 billion tourist industry.

The effect of the COVID-19 was also yet to be seen with Chinese tourists making up 15.4 per cent share of total visitors to Australia at 1.33 million guests in 2019.

This was followed by New Zealand 14.7 per cent, USA 8.9 per cent, UK 7.7 per cent, Japan 8.8 per cent and Singapore 4.8 per cent.

Related: Crown Eyes Fourth Hotel at One Queensbridge


Australian Hotel Market Results 2019

STATEOccupancy (capital city)Average Daily Rate (capital city)Total Visitor Growth YOYShare of International MarketShare of Domestic Market
QLD72.0%$157.1812.2%31.9%22.2%
NSW82.5%$220.5011.1%50.7%33.1%
VIC80.3%$186.1112%36.1%25.4%
TAS83.1%$184.108.1%3.4%2.7%
NT55.9%$146.206.7%3.6%1.4%
WA73.2%$164.4010.8%4.5%11.4%
SA80.4%$155.5518.2%2.2%19.3%
Total73.9%$185.5811.6%

(note: market share exceeds 100pc due to visitors going to multiple states)
Source: Savills Hotels Market Update - TRA, STR

Savills hotels managing director Michael Simpson said the number nights spent by international and particularly domestic visitors continued to grow last year.

“Of the 10 Australian key markets reviewed, five markets achieved occupancy in excess of 77 per cent, reflecting the continuing growth in international and domestic visitors,” Simpson said.

“Growth in demand for rooms was achieved in seven markets; however, three of those markets were impacted by increased new room supply, resulting in an overall decline in RevPAR for those markets, as compared to the previous corresponding period.”

According to the results “beyond the constant barrage of news, property investors are sanguine and their capital appetite remains high for investment grade hotel stock”.

In 2019 a number of hotels were sold including Vibe North Sydney, Ovolo Nishi Canberra, Best Western Lake Kawana and Paradise Resort Gold Coast.

Since peak transaction levels in 2015 at $3.5 billion for 73 transactions, volume and value had decreased significantly.

In 2019 total hotel transaction value approximated $2.1 billion arising from 48 transactions “due to a number of properties being sold to and held by long term, inter-generational Asian investors who typically do not trade their assets”.

According to the market update this was causing yield compression, with high net worth investors actively seeking Australian assets due to the strength in the market and favourable net yields compared to other classes.

HotelAustraliaBrisbaneMelbournePerthAdelaidedo not useSector
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
Salta MD Sam Tarascio
Exclusive

Why Salta Won’t Break Ground on $400m Pipeline

Leon Della Bosca
7 Min
Exclusive

Precinct Proposals Bloom as Brisbane Middle-Ring Sheds its Past

Phil Bartsch
8 Min
Exclusive

Newest Land Lease Player Plots Sector Shake-Up

Taryn Paris
5 Min
Waterloo Affordable Mirvac hero
Exclusive

Affordable Housing Rules Tighten as Proposal Deluge Continues

Clare Burnett
5 Min
Exclusive

Beyond the Aerotropolis: How Airports are Turning into Cities

Taryn Paris
6 Min
View All >
Planning

State Goes Public with Plans for 10,000 Victorian Homes

Lindsay Saunders
Sponsored

Bondor Metecno’s MetSeam Elevates Facade Design Style

Partner Content
SHMH Penrith hero
Residential

First Stage Filed for $1.1bn Penrith Masterplan

Clare Burnett
Four towers are planned for the site that neighbours a stadium where work has begun on a $300-million rebirth...
LATEST
Planning

State Goes Public with Plans for 10,000 Victorian Homes

Lindsay Saunders
2 Min
Architecture

Bondor Metecno’s MetSeam Elevates Facade Design Style

Partner Content
5 Min
SHMH Penrith hero
Residential

First Stage Filed for $1.1bn Penrith Masterplan

Clare Burnett
3 Min
Life Sciences

NSW Healthcare Asset Portfolio Comes to Market

Lindsay Saunders
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/fires-virus-to-drop-hotel-bookings-40pc