The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
22 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE MORE THAN 500 ALREADY ATTENDING
22 DAYS UNTIL OUR FLAGSHIP CONFERENCE 500+ ALREADY ATTENDING
SECURE YOUR SPOTDETAILS
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
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
View All >
Construction workers building social housing in Gosford, New South Wales.
Affordable & Social Housing

HA Contracts Adds 18,000-Plus Homes to Pipeline

Marisa Wikramanayake
Construction of skyscrapers in the city
Development

Sector Confidence Steady but Reform Calls Grow Louder

Leon Della Bosca
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
The Bates Smart director’s scheme would transform Melbourne’s premier sports and entertainment precincts—and add 500 hom…
LATEST
Construction workers building social housing in Gosford, New South Wales.
Affordable & Social Housing

HA Contracts Adds 18,000-Plus Homes to Pipeline

Marisa Wikramanayake
2 Min
Construction of skyscrapers in the city
Development

Sector Confidence Steady but Reform Calls Grow Louder

Leon Della Bosca
3 Min
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
the four concept towers approved for sydney metro's parramatta precinct
Development

Rush of Approvals Sends Parramatta Skywards

Renee McKeown
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/fires-virus-to-drop-hotel-bookings-40pc