Australian hotel sales total $1.8 billion in 2018 - Colliers International Report
Contact
Australian hotel sales total $1.8 billion in 2018 - Colliers International Report
Despite a slow start to 2018, Australian hotel sales volumes picked up over the second half of the year to record a total of $1.8 billion, across 37 transactions (including two portfolio deals), according to Colliers International.
-
NovotelNovotel Hotel Twin Waters which sold for $88,500,000
The report found that Queensland was the most active hotel investment market, with a total of $491 million worth of sales, as investors capitalised on improving fundamentals in Brisbane and ongoing strength of trade in the key leisure markets.
Key transactions out of Queensland in 2018 include the Watermark Portfolio for $90,000,000 and the Novotel Hotel Twin Waters which sold for $88,500,000.
Volumes in New South Wales and Victoria were solid, aided by some big-ticket sales including the Park Regis City Centre in Sydney, which was sold by Gus Moors and Karen Wales of Colliers International for $54,180,000.
The Northern Territory also witnessed its largest single investment since 2010 with Delaware North’s acquisition of the Darwin casino.
“Offshore investors continued to dominate the Australian market, accounting for two thirds of hotel transaction volumes in 2018,” said Gus Moors, Head of Hotels at Colliers International.
Gus Moors, Head of Hotels at Colliers International
“There was a notable broadening of the capital base with investors sourced from Singapore, Malaysia, Thailand, Middle East, Hong Kong, India and the United Kingdom, while China was a notable omission.”
“Locally domiciled and global investment funds were the most active buyer group with volumes totalling more than $1 billion and with a number of new funds targeting the sector.”
Development sales were also prominent throughout 2018 with a notable transaction being the Quincy Melbourne, which was sold as a fund-through deal.
Karen Wales, Director, Hotels at Colliers International said “We expect to see more development sales over the coming year with projects currently being marketed in Canberra, Sydney, Adelaide and Melbourne.”
“Hotel openings are expected to peak in 2019 with the opening of more than 6,500 new rooms in the ten major accommodation markets, with Melbourne, Perth and to a lesser degree Sydney to see the majority of this supply increase.”
“If they have not yet done so, existing owners will need to consider expediting the renovation cycle to compete with new supply.”
“Deal flow is expected to increase in 2019 as owners respond to changing market conditions, particularly in markets with significant new supply.”
Click here to view and download the Colliers International Research Report.
See also:
Australian luxury hotels up their game for Chinese tourists
New global luxury hotel brands to grow SEQ into a star-studded destination
