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HotelStaff WriterWed 15 Feb 17

Hotel Sales Stats Check In With Shining Results

iStock-468581938_620x380

Australia’s hotel market moves into 2017 after experiencing an eventful year of sales in 2016, according to a report recently published by Colliers International.

Colliers recorded 50 hotel sales across the country, totaling a collective value of $2.7 billion which is recognised as the second highest accumulative sales result on record.

According to the report, Chinese Zhengtang Group (now Greaton) made the biggest transaction in Australia after acquiring the Ribbon development site in Darling Harbour for $700 million, which included a 400-room W branded hotel.

Together with the Ribbon development site purchase, Chinese mainland investors were the predominant buyer origin for 2016 with 37% of sales by value. Domestic buyers accounted for approximately 29% by value and Singapore buyers accounted for approximately 18% in 2016.

New South Wales was the national dominator in sales volume, accounting for around 40% of total hotel sales by value. Major hotel sales in Sydney included the Park Regis City Centre ($46.0 million) and the Vibe Hotel Sydney ($97.0 million). Major suburban sales in NSW included the Mercure Parramatta ($40 million) and the Adina Apartment Hotel in Norwest ($30.6 million).

Queensland’s leisure destinations experienced significant activity, particularly Surfers Paradise and Cairns, including the Surfers Paradise Marriott Resort & Spa ($70 million), Hotel Grand Chancellor Surfers Paradise ($80 million), Rydges Tradewinds Cairns ($34 million) and Rydges Esplanade Cairns ($40 million) all transacting in 2016.

According to the report, Cairns and the gold Coast were the two best performing markets in the country in 2016 in terms of year-on-year growth.

“Over the past 4 years we have seen an overall trend in compression of yields, from over 9% in 2013 to approximately 6% in 2016 when taking into account all hotel transactions over $5 million,” the report said.

“2017 is likely to be a year where hotel development deals feature prominently, as investors look for new ways to capitalise on the strength of the sector.”

HotelAustraliaReal EstateSector
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Article originally posted at: https://theurbandeveloper.com/articles/hotel-sales-stats-check-in-shining-results