According to the second quarter results from iPG’s quarterly Hotel Market Analysis report the top and mid-tier hotel groups are now acquiring existing hotel businesses and established brands.

With a lack of suitable hotel real estate available, groups such as Accor, IHG and Marriott were amongst the top tier hotel groups making acquisitions of existing hotels with middle tiered international operators such as Prince Hotels and Minor, also partaking in acquisitions of established hotel brands to expand their portfolios.

iPG, the leading bespoke Australian advisory for high net worth Asian investors, expects buoyancy in acquisitions to continue for the remainder of the year, as the shortage of real estate is a long-term issue and will mean hotel targets continue to be hotly contested.

Launching its second quarterly ‘Hotel Market Analysis’ report, iPG Group CEO, Michael Gu, commented, “The number of international visitors to Australia continues to climb, with 8.3 million tourists spending up to $42.3 billion until the end of March 2018, up $2.4 billion year-on-year. These visitors spend a colossal 269 million nights in Australia during their travels. This upward trend is showing no sign of abating and is resulting in a hotel buying frenzy in the absence of development opportunities.”

Click here to view and download the full report.

Other key findings from iPG’s Hotel Market Analysis report:

Occupancy Rates and RevPAR

• Although the end of financial year is traditionally a flat period for the hotel industry, Canberra’s market recorded double digit growth. Australia’s Capital benefited from increased volumes of leisure tourism generated by food & wine destination travellers, coupled with the new international connections headlined by Singapore Airlines and Qatar Airways.
• The leisure dominant market of Gold Coast continued to enjoy the benefits from the Commonwealth Games at the end of the financial year with the city attracting MICE (Meetings, Incentives, Conferences & Events) events such as the Logies, Dally M’s and the returning RICS event.
• The emerging markets of Adelaide and Canberra, whilst not exhibiting extraordinary levels of growth, instead highlight that well-balanced and diversified streams of business and tourism initiatives will lead to long-term sustainable growth of the accommodation and its surrounding markets.

Hotel Operators & Brand Acquisitions

• The most dominant player in acquisitions was Accor with its acquisition of the Mantra Hotels & Resorts portfolio. Already Australia’s largest hotel operator, the French giant received approval from the ACCC to buy the Mantra suite of brands, which includes the Mantra, Peppers, Breakfree and the Art Series collection.
• Accor’s buying spree continued with the acquisition of the Swiss branded Movenpick Hotels & Resorts, the Latin American group Atton Hoteles and the luxury lifestyle hotel collection of "SBE", renowned for its “SLS, Mondrian and Originals” brands.
• IHG (Intercontinental Hotels Group) announced the acquisition of the Taiwanese luxury brand, the Regent for $39USD million for a 51% stake, which was followed by the unveiling of a new upscale hotel brand, "voco".
• Marriott opened two Four Points by Sheraton hotels in Docklands Melbourne and Broadway in Sydney. Thai group, Minor Hotels & Resorts, purchased a 25% stake in Spanish hotel group, NH Hotel Group from China’s HNA Group. HNA reeling from the accidental death of its founder, Wang Jiang, continued its global divestment spree offloading its stake in Hilton, Radisson and Red Lion Hotels.
• Japan’s Seibu Holdings, owner of Prince Hotels & Resorts, settled into its acquisition of the StayWell Hospitality Group from 2017, collecting the brands Park Regis, Policy and Leisure Inn, of which iPG owns its Sydney flagship hotel in, Park Regis City Central Sydney.
• Chinese hotel operator, Artyzen joined the acquisition band wagon and entered into a joint venture to roll out of the highly acclaimed European boutique hotel brand, CitizenM, throughout the Asia Pacific.

See also:

Scarcity sees Sydney five-star hotel room values soar Michael Simpson Savills Hotels

Colliers International release their Australia New Zealand Capital Market Investment Review Hotels research report

Darwin and Gold Coast top hotel performers edging out Cairns, CBRE Hotels MarketView report