The CBRE Hotels Check-IN report authored by Robert McIntosh, Wayne Bunz, Rob Cross and Ben Martin-Henry discusses Chinese capital, hotel guest satisfaction, lifestyle brands in Australia and transaction levels in the region.
CBRE Hotels Check-IN Report looks at a number of subjects, in particular why 2017 has been slow in terms of transaction volumes and some of the changes in demand and the resultant growth of lifestyle brands and their potential impact on the market.
"Despite the slowdown in volumes the demand for hotels has remained strong and the continued lack of quality stock has inhibited investors and, in some cases, hotel guests. Yields remain low but the expectations for further reductions are now limited. Governments are trying to increase interest rates and stimulate economies but avoid excessive expenditure – a difficult balance."
"The challenge increasingly will be to ensure that assets perform well; capital growth is less certain than previously. In hotels this will require excellent, and innovative, management; owners who understand the business and are prepared to reposition assets when required; and good marketing will be key coupled with focussed asset management."
"Locations within the region have been performing very differently. The relative weakness of the Australian dollar coupled with economic stability and safety has resulted in improvements in overall hotel performance. Location by location, however, the story is very different. Sydney continues strongly whilst Perth languishes, Darwin shows some signs of recovery when Melbourne looks like slowing. Some regional markets, such as Cairns, continue strongly."
"The changing types of demand, where customers are looking for more experiential stays, may mean that hotels will have to change from their broad, generic, satisfy-the-generalmarket, style. There has been a clear move over the last few years from large inefficient rooms to smaller, well serviced and designed accommodation. The public areas are less grand and more welcoming and relaxing. The food and beverage outlets are more exciting and enticing."
The CBRE Hotels Check-IN Report continues to discuss Chinese capital, guest satisfaction, lifestlye brands and further commentary.
Click the below link to view the full report.
See also:
Get to know Wayne Bunz, National Director of CBRE Hotels
Get to know Rob Cross of CBRE Hotels
New South Wales pubs market outperforming all other property sectors