The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
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
print
Print
HotelStaff WriterSun 13 Nov 16

Overseas Buyers Check In To Aussie Hotel Sector With Deals Totaling $8.2 Billion

h

New research reveals that Asian investors have ploughed $8.2 billion into Australian hotel acquisitions over the past eight years, stealing the march on their domestic rivals.

Domestic purchasers have reportedly spent just $3.2 billion on Australian hotel property over the same period.

CBRE Hotels National Director Wayne Bunz said over $600 million in hotels had transacted in Q3 with all but $50 million having been acquired by Asian buyers.

“For the ninth year in a row, Asian investors are set to be the dominant players in the Australian hotel market,” Mr Bunz said.

“Multi-disciplined Asian capital has long been drawn to Australia’s attractive yields, steady growth, transparent political/legal framework and liquidity and that interest shows no signs of abating, with Australia increasingly viewed as a safe haven for Asia Pacific capital.”

The data, sourced from CBRE’s MarketView, highlights that the majority of transactions in Q3 took placed in regional locations, with tropical North Queensland seeing the most activity.

This includes notable transactions such as the Novotel Oasis in Cairns, which sold to Shakespeare Property Group for $48 million, and the Rydges Esplanade Cairns, which sold for $40 million to Mulpha Group.
[urbanRelatedPost][/urbanRelatedPost]
Mr Bunz said the high level of buyer activity had led to a noticeable change in the yield spread for regional hotels.

“Owners are now able to receive a premium from potential buyers who wish to break into these markets,” Mr Bunz said, adding that high construction costs meant buying was the most financially viable option for entering regional locations.

CBRE Hotels Research Manager Benjamin Martin-Henry said a key attraction for offshore investors was the current strength in the Australian hotel market, with occupancy rates, average daily rates and revenue per available room having all increased in the year September 2016 according to the latest figures from STR.

“The leisure markets continue to be the best performing cities across the country, with Cairns, the Gold Coast and Hobart posting strong performance growth over the past year,” Mr Martin-Henry said.

“Sydney has also showed strong growth across all indicators and continues to be the strongest ‘non-leisure’ market.”

HotelInternationalAustraliaFinanceReal EstateSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
View All >
Charter Hall’s $925m Hyde Park skyscraper
Planning

Charter Hall $925m Sydney Skyscraper Wins City Backing

Vanessa Croll
A rendering of the three-storey apartment project Arca by Red & Co at Stafford near Brisbane.
Residential

‘Confident’ Red & Co Starts Work on Stafford Apartments

Marisa Wikramanayake
Residential

Consolidated Reveals Next Riverfront Play in $64m Deal

Leon Della Bosca AND Taryn Paris
Don O’Rourke has put his foot on “the last absolute riverfront site” and will reveal his plans before year’s end...
LATEST
Charter Hall’s $925m Hyde Park skyscraper
Planning

Charter Hall $925m Sydney Skyscraper Wins City Backing

Vanessa Croll
3 Min
A rendering of the three-storey apartment project Arca by Red & Co at Stafford near Brisbane.
Residential

‘Confident’ Red & Co Starts Work on Stafford Apartments

Marisa Wikramanayake
2 Min
Residential

Consolidated Reveals Next Riverfront Play in $64m Deal

Leon Della Bosca AND Taryn Paris
3 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/overseas-buyers-aussie-hotel-sector-8-2billion-deals