The hotel property sector is outperforming all other property classes thanks to our tourism industry growing at more than double the rate of the Australian economy, says Trudy Crooks of Resort Brokers Australia in the September issue of the Informer.

The Deloitte Tourism-Hotel Outlook 2017 reported national hotel room revenue hit $27 million a night in 2016, raking in $9.8 billion over the year. That figure is expected to rise to $10.2 billion spent on hotel rooms this year (2017), then increase by 5.3% per annum over the next three years.

But, while the visitor economy is thriving, new hotel supply has been at historically low levels. Reports suggest the number of major hotel deals so far in 2017 is at the lowest level it’s been in three years.

With hotel room revenue rising, owners are holding on to their prized assets, causing significant supply constraints. At the same time, investment conditions are strong in terms of hotel earnings, tourism market outlook and the low cost of debt.

New developments are being comfortably absorbed, and significant new supply opportunities exist. Accommodation demand forecasts suggest we need 20,000 new rooms by 2020, so for investors and developers, the high-performing hotel sector looks very attractive.

We are seeing a significant amount of offshore and local capital chasing opportunities, with inflation and interest rates low and the Australian dollar comfortable below US80 cents.

To continue reading the full article by Trudy Crooks click the link to download the September 2017 issue of the Informer.

See also:

Singapore the top Asia Pacific tourism spending destination

With record growth in visitors, how will New Zealand’s hotel sector cope?

Influx of Australian business visitors boosts Brisbane tourism